Funds Group: KBI (The Advisors’ Inner Circle Fund)
Management Company: KBI Global Investors (North America) Ltd.
Funds Affected: KBI Global Investors Acquarius Fund
Principal Sustainable Investment Management Strategy: ESG Integration, Thematic, Engagement
The fund invests in companies whose main business is in the water-related resource sector. The investment universe includes but is not limited to companies but are manufacturers, service providers and operators that offer solutions in one or more of the following four categories: (i) increasing supply and access; (ii) decreasing demand and waste; (iii) improving and testing quality; and (iv) building and fixing infrastructure.
The adviser explicitly integrates environmental, social and governance (ESG) factors into the fund’s investment process in accordance with the adviser’s belief that companies with strong governance and whose products and services enhance social or environmental goals should meaningfully outperform other companies and are more likely to have long, durable, sustainable business models. The fund may invest in companies which already demonstrate leadership on ESG issues relevant to their industries, as well as in companies which have yet to make significant progress on such issues but have the potential to do so. The adviser believes that engagement with selected companies in the fund’s portfolio will encourage such companies to address issues where sufficient commitment is lacking, or reinforce progress that may be underway. While the adviser conducts its own assessment of the ESG performance of all companies, it also uses the services of a third-party provider of ESG research and ratings to assist with that process.