Funds Group: Quaker Funds
Management Company: Community Capital Management, Inc.
Funds Affected: Quaker Impact Growth Fund and Quaker Small-Cap Value Fund
Principal Sustainable Investment Management Strategy: Exclusions, Impact, ESG Integration
The fund invests in companies that may have positive impact attributes or specific impact characteristics and maintain neutral posture toward environmental, social and governance (ESG) related risk. The adviser uses an internally developed investment process to seek to develop a fully integrated portfolio of securities that includes environmental, social and governance (ESG) factors that can deliver strong financial performance while simultaneously having positive, long-term economic and sustainable impact. Securities are categorized based on the following four-part segmentation:
- Positive Impact: common and preferred securities whose revenue is more than 50% derived from impact themes.
- Impact: analysis of established third-party research incorporating various impact/ESG scores and factors; In addition, the net benefit to society is analyzed if less than 50% of revenue comes from positive impact themes but there are other positive policies and procedures.
- Neutral Impact: does not violate any negative restrictions and has the potential to reach impact status in the future.
- Negative Impact: companies with the following activities are excluded from the investment process:
- Fossil fuel exploration and production; any activity related to coal Tobacco, chemical manufacturing, weapons, prison management
- Regulatory issues, discriminatory labor practices, safety issues, poor CRA ratings
- Companies with a material involvement (over 30% of revenue) in: gaming, oil transportation & storage, fuel generation from fossil fuels, and junk food
- At the adviser’s discretion, other companies may also be excluded from the investment process due to their negative impact.