About the manager

Portfolio 21 Investments has been a leader in the field of social and environmental investing since 1982. The company's global strategy was created in 1999 to address the ecological risks and opportunities of the 21st century. Portfolio 21 invests in companies designing ecologically superior products, using renewable energy and developing efficient production methods. The companies in which Portfolio 21 invests seek to prosper in the 21st Century by recognizing environmental sustainability as a fundamental human challenge and a tremendous business opportunity.

Investment philosophy

Portfolio 21 believes the best long-term investment opportunities are found in companies using environmental sustainability as a framework to make business decisions. These companies understand that the Earth's ability to provide natural resources, such as oil or clean air and water — its ecological capacity - is finite and that "business as usual" is an inadequate response to a likely ecological crisis. Portfolio 21 believes the understanding of sustainability principles demonstrates the qualities of innovation and leadership that create a distinct competitive advantage and build long-term value, and it invests only in companies that are integrating intelligent and forward-thinking environmental strategies into their overall business planning.

Investment approach

Companies in which Portfolio 21 invests must meet strict requirements regarding their long-term business models and, in Portfolio 21's opinion, be well positioned to meet the challenges and risks of a changing global economic era. Of particular interest is the composition of a company's long-term earnings growth. Portfolio 21 looks most closely at rising trends in revenues and earnings improvements derived from ecologically superior product lines, a sound balance sheet, increasing profit margins, evolving product lines, investments in renewable energy, innovative transportation and distribution strategies and efficient use of resources with respect to meeting human needs. It seeks to invest in corporate leaders that make an explicit commitment to these sustainable business practices and have allocated significant resources to achieve their goals. Portfolio 21 manages portfolio risk through prudent diversification and portfolio positions that are proportionate to a company's market capitalization and exposure to ecological risks. A significant portion of the fund's holdings are in non-US companies.

Portfolio managers

James Madden, CFA® and Anthony S. Tursich, CFA®, Co-Portfolio Managers, Portfolio 21

Jim has more than 15 years of experience in socially and environmentally responsible investing. He has led several shareholder resolutions with corporations and developed Portfolio 21's shareholder activism programs. He received his bachelor's degree and MBA from the University of Wisconsin.

Tony has more than 10 years of experience in the field of investment management. He received his bachelor's degree from Montana State University and his MBA from Portland State University. Tony studied European business at Ecole Superieure de Commerce Marseille-Provence in France.

ESG commitment

Portfolio 21 invests in companies throughout the world that have made a commitment to environmental sustainability and have demonstrated this commitment through their business strategies, practices and investments. It believes the essence of environmental sustainability is the acknowledgment of the limits of nature and society's dependence on nature. Some of the companies in which Portfolio 21 invests are changing the landscape of their industry or are forcing others in their industry to catch up, others have product lines that are ecologically superior to their competition, and still others are developing vitally needed technologies that will provide cleaner energy solutions for the future.

Portfolio 21 employs the following proprietary framework to evaluate which companies understand their ecological risks and opportunities and are taking positive action to integrate sustainability strategies in their business models.

• Adapting their business models to gain competitive advantages within ecological constraints
• Reducing the ecological impact of their products and/or services
• Demonstrating a financial commitment to environmental strategies in their research and development priorities and capital investments
• Leading with an explicit internal and external program to integrate environmental practices into all aspects of the business
• Employing environmental management systems to identify and address environmental impacts and liabilities, developing action plans, and establishing environmental accounting and reporting practices
• Doing more with less by efficiently using and re-using resources
• Decreasing exposure to legal, financial and reputation risks and liabilities, such as those associated with climate destabilization (greenhouse gas emissions), superfund sites, spills and toxic releases

Pax World Management makes no assurance that the manner in which Portfolio 21 Investments manages its assets in the ESG Managers® Portfolios is the same as or entirely consistent with the manner in which it manages any of its other Funds or accounts.

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Portfolio 21 is not affiliated with ALPS Distributors, Inc. 

CFA is a trademark owned by CFA Institute.

Foreign investing involves special risks such as currency fluctuations and political uncertainty.