Funds Group: Baywood Funds
Management Company: SKBA Capital Management, LLC
Funds Affected: Baywood Socially Responsible Fund
Sustainable Investing Strategy: ESG Integration, Exclusions
In selecting investments, the advisor considers social criteria such as an issuer’s community relations, corporate governance, employee diversity, employee relations, environmental impact and sustainability, human rights record, and product safety. Using both quantitative and qualitative data, the advisor also evaluates an issuer’s involvement in specific revenue generating activities to determine whether the issuer’s involvement was meaningful or simply incidental with respect to that activity.
The fund seeks to avoid investing in any issuer that derives more than 5% of its total revenue from tobacco, alcohol, gambling, abortion or weaponry (whether sold to consumers or the military), or that is involved in nuclear power. Because information on an issuer’s involvement in those activities may not be publicly available, it is possible that the fund’s holdings may include an issuer that does not meet its criteria for socially responsible investing. When the advisor discovers that a holding does not meet its criteria for socially responsible investing, it will divest that holding as soon as reasonably practicable.