13D Activist Fund

    204

    Funds Group: 13D Activist Fund (Northern Lights Funds)

    Management Company: 13D Management LLC

    Funds Affected: 13D Activist Fund

    Principal Sustainable Investment Strategy: ESG Integration

    Summary:

    When making an investment decision, the adviser also evaluates and considers environmental, social and governance (“ESG”) factors, with a strong emphasis on corporate governance. Generally, a significant majority of portfolio positions will have a shareholder representative on the board of directors who advocates for best in class corporate governance practices and a shareholder focused mentality. While some of these investments will be in companies with good corporate governance practices, unlike other ESG investors, many will be in situations where an activist is attempting to remedy poor corporate governance.  This can range from implementing best corporate governance practices to completely changing corporate culture and replacing entrenched, conflicted and self-dealing management teams. The advisor also expects that these shareholder representatives who sit on the boards of our portfolio companies will be monitoring, encouraging and implementing responsible social and environmental corporate policies. The adviser believes that many of the companies which the adviser selects for investment by the fund provide an opportunity to improve the ESG characteristics of those companies.