Funds Group: Glenmede Funds
Management Company: Glenmede Investment Management LP
Funds Affected: (1) Glenmede Responsible ESG US Equity Fund and (2) Glenmede Women in Leadership US Equity Fund
Principal Sustainable Investment Management Strategy: (1) ESG Integration, including potential Exclusions, (2) Thematic Investing
(1) Glenmede uses a screening process to identify, at the time of investment, companies that satisfy its ESG criteria. Typically, environmental assessment categories include climate change, natural resource use, waste management and environmental opportunities. Social evaluation categories include human capital, product safety and social opportunities. Governance assessment categories include corporate governance, business ethics and government and public policy. How well companies adhere to international norms and principles and involvement in major ESG controversies (examples of which may relate to the environment, customers, human rights and community, labor rights and supply chain, and governance) are other considerations. The ESG evaluation process is conducted on an industry-specific basis and involves the identification of key performance indicators. These ESG categories may be changed without shareholder approval. Glenmede’s screening process uses positive screening to preference companies that demonstrate positive or improving performance on ESG criteria, and negative screening to exclude companies that do not meet minimum ESG performance standards.
(2) Using quantitative analysis, under normal market circumstances, the fund invests at least 80% of the value of its net assets (including borrowings for investment purposes) in equity securities, such as common stocks, of U.S. large cap companies that are demonstrating commitment to advancing women through gender diversity on their boards or in management (Women in Leadership criteria). Glenmede uses a screening process to identify, at the time of investment, companies that satisfy its Women in Leadership criteria. Glenmede’s screening process uses positive screening to preference companies that meet its Women in Leadership criteria by the inclusion of women in significant roles including, but not limited to, a chairwoman, female board members, a female chief executive officer or women in management positions. After identifying companies that meet these criteria, Glenmede uses proprietary multi-factor computer models to select stocks that the models identify as having reasonable prices, good fundamentals and rising earnings expectations. These computer models rank securities based on certain criteria, including valuation ratios, profitability and earnings-related measures. The fund may actively trade its securities to achieve its principal investment strategies.