Active Equity
BRIGHT FUTURE SMALLER COMPANIES
Bright Future Smaller Companies is designed to identify the leaders of the future and benefit from the upside opportunities associated with smaller capitalization companies in the US that also exhibit ESG Leaders, ESG Evolvers, and Impact Leaders characteristics. We believe that this combination of attributes will lead to strong risk-adjusted active returns over a full market cycle. Small cap is where innovation lives – it is an exciting space to find investments that will be tomorrow’s leaders.
Bright Future Smaller Companies is a diversified portfolio of 60-80 US small-mid cap stocks targeting an alpha** of 3% with market-like total volatility.
POSITIVE TREND QUALITY
Positive Trend Quality* seeks to capture the return potential and transformative power of the largest global companies. Casting a wide net to find opportunity is the best way to benefit from investing in the world’s most sustainable companies. The strategy incorporates our proprietary ESG methodology within a next generation systematic fundamental process designed to deliver a core global equity strategy with lower total volatility, higher risk-adjusted returns, and a superior sustainability profile relative to the broader equity market.
Positive Trend Quality is well diversified across all economic sectors and regions. The portfolio typically holds approximately 100 global mega- large- and mid-cap names targeting an alpha** of 2% with lower-than-market total volatility.
Thematic,
Listed Impact
ONE LIFE
The One Life* strategy takes its inspiration from the World Health Organization (WHO)’s One Health concept[1], which is the study of the intersection of human, animal, and environmental health. We believe there is significant opportunity for publicly traded companies to profitably address unmet needs at the intersection of human, animal, and planetary health that will benefit large pockets of global populations and geographies. We see upside investment potential as well as downside protection associated with investing along this theme, given current consumer trends, government spending initiatives, and demand arising from the shift to a greener, healthier, and more inclusive economy.
We begin by isolating companies that we believe will be tomorrow’s leaders driving a healthier future – companies with attractive company fundamentals and products and services significantly aligned to Radiant’s impact themes. We use systematic engagement, traditional engagement, and active voting to leverage the power of our clients’ capital toward creating positive impact.
The strategy will not hold any company with products that are deemed to be obstructive to the UNSDGs in focus, companies with poor ESG profiles, or companies tied to severe controversies.
One Life is a focused portfolio of 50-70 global all-cap stocks targeting an alpha** of 3% with market-like total volatility.
POSITIVE TRANSFORMATION
The Positive Transformation* strategy focuses on the technological evolution of the world economy. Transforming the ‘engine’ of growth must be a focus if we expect to meet the challenges and opportunities associated with a future that will look very different than the past
The Positive Transformation Strategy seeks to hold companies that are driving the transition to a cleaner and more efficient economy. While transformative technology is at the heart of many of these companies, many are not in the Tech sector. Our investment process sees opportunity associated with early entry into this impact theme, benefitting from global spending initiatives focused on modernization of energy and infrastructure.
We begin by isolating companies that we believe will be tomorrow’s leaders driving transformation – companies with attractive company fundamentals and products and services significantly aligned to the UNSDGs. We use systematic engagement, traditional engagement, and active voting to leverage the power of our clients’ capital toward creating positive impact.
The strategy will not hold any company with products that are deemed to be obstructive to the SDGs in focus, companies with poor ESG profiles, or companies tied to severe controversies.
Positive Transformation is a focused portfolio of 50-70 global all-cap stocks targeting an alpha** of 3% with market-like total volatility.
* Model portfolio: investment strategy available to clients but not yet funded
** Alpha is a measure of active return—the excess returns earned on an investment above the benchmark return.
[1] Source: One Health Tripartite (WHO, FAO, OIE) plus UNEP, 2021.
[2] Source: United Nations Foundation, United Nations Sustainable Development Goals, 2015