Changebridge’s sustainable equity strategy is a U.S. equity focused strategy that takes both a quantitative and fundamental approach to security selection. The strategy follows a sustainable investing philosophy that combines rigorous financial analysis with equally rigorous environmental, social and governance (ESG) analysis in order to identify investments.
OBJECTIVE
The Changebridge Capital Sustainable Equity Strategy (the “Strategy”) seeks capital appreciation and lower volatility than the broader market.
INVESTMENT STRATEGY
The strategy incorporates a combination of quantitative and fundamental research to identify equity securities that it believes are undervalued. Integrating sustainable investing considerations such as ESG factors into the investment process helps uncover businesses that are creating a long-term competitive advantage. This holistic approach to understanding quantitative and fundamental factors with an assessment of sustainability are the foundations for value creation.
The Changebridge sustainable equity strategy identifies long investments that are likely to outperform the market, while also exhibiting strong environmental, social and governance (ESG) attributes.
While many of the sustainable investing strategies currently available to investors rely upon quantitative ESG metrics, Changebridge adds a fundamental layer to identify value-creating opportunities across market capitalizations.
Changebridge believes there is an under-appreciated opportunity to identify securities that exhibit strong ESG characteristics but are not recognized by the large cap-focused indices.
Quant + Fundamental
Idea generation begins with proprietary screening tools and a multivariate factor-based coding system to identify inefficiencies. These inefficiencies serve as the catalyst for additional fundamental analysis. Quant elements reduce the impact of behavioral bias in our portfolio.
Sustainable Investing
Investing according to environmental, social, and governance (ESG) criteria doesn’t need to occur at the expense of returns. The Advisor believes that a company’s understanding of ESG principles demonstrates the qualities of innovation and leadership that create a distinct competitive advantage and build long-term value.
Active Share
Because the only method of outperforming an index is to be different from it, the strategy focuses on a low turnover portfolio of a small number of individual securities. The Advisor selects equity securities that it believes are undervalued and/or overlooked by the market.
Holistic Approach
The investment process integrates quantitative factor models with rigorous fundamental research. The sustainability mandate embraces businesses which consistently demonstrate innovation and a strong adherence to ESG principles.
Changebridge Capital, LLC (“Changebridge” ) is an SEC-registered investment adviser with its principal place of business in Boston, Massachusetts.
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An investment in the Fund is subject to investment risks, including the possible loss of some or the entire principal amount invested. There can be no assurance that the Fund will be successful in meeting its investment objective. Investment in the Fund is also subject to the following risks: Equity Securities Risk, Short Selling Risk, Value Risk, Sector Risk, ESG Investment Strategy Risk, Small and Mid-Cap Securities Risk, Illiquid investments Risk, ADR Risk, Large Capitalization Risk, COVID-19 Risk, Risk of Investing in the U.S., Preferred Securities risk, Quantitative Model Risk, Authorized Participant Risk, ETF Structure Risks, Early Close/Trading Halt Risk, Asset Class Risk, Cyber Security Risk, Management Risk, Market Risk, New Advisor Risk, New Fund Risk, and Non-Diversification Risk. While the shares of the Fund are tradable on secondary markets, they may not trade in all market conditions and may trade at significant discounts in periods of market stress. ETFs trade like stocks, are subject to investment risks, fluctuate in market value and may trade at prices above or below the ETFs net asset value. Brokerage commissions and ETF expenses will reduce returns. More information about these risks can be found in the Fund’s prospectus.
An investor should consider the investment objectives, risks, and charges and expenses of the Fund before investing. The prospectus contains this and other information about the Fund. A copy of the prospectus is available at www.changebridgecapital.com or by calling Shareholder Services at 800-773-3863. The prospectus should be read carefully before investing. Current and future holdings are subject to change and risk.
Changebridge Capital, LLC is distributed by Capital Investment Group, Inc., Member FINRA/SIPC, 100 E. Six Forks Road, Suite 200, Raleigh, North Carolina 27609. There is no affiliation between Changebridge Capital, LLC, including their principals, and Capital Investment Group, Inc.
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