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Riverbridge holdings are:
To us, these realities are inextricably linked.
We do not rely on rigid checklists or screens to select the companies. We personally, thoroughly evaluate every holding in every strategy the same Riverbridge way: through in-depth research and extensive conversations with management teams and peers.
In all of our holdings, we are looking for companies that are compounding their positive impact; in addition to being sustainable themselves, they enable their customers to improve resource efficiency, reduce waste, and deliver higher quality products and services. These companies are leading their industries in terms of being ESG-minded.
Riverbridge’s approach to responsible investing is distinguished by its authenticity, history, and inherent philosophical integration. Responsible investing—and the corollary concept of ESG investing—is not an approach we have adopted as a recent add-on to our offerings or in response to market demand. Rather, our investment philosophy has been grounded on a mindset of responsible investing since our founding in 1987. Responsible investing is the longstanding bedrock of how we see the very purpose of companies and capital markets and consistently impacts all of our strategies.
At Riverbridge, we believe that the use of negative screens to find the most responsible companies limits our ability to find the companies that make the most compelling business investment. We prefer to dig into a company’s fundamentals through our in-depth research process. This approach avoids:
Riverbridge’s proprietary research serves as the basis for our investment team’s decisions. This ensures that our responsible investing considerations are grounded in our long-standing investment philosophy. The vast majority of our research is internally produced and stems from our investment team’s due diligence, including interactions with companies and their ecosystems. Riverbridge subscribes to third party sources such as MSCI to give our team and our clients visibility into how the outcomes of our responsible investing approach measure up to industry standards. In providing third party impact metrics in this report, we are mindful of the potential shortcomings of third party ratings including:
Both strategies invest in companies of all sizes and are very similar in composition. The primary difference is one of designation— Eco Leaders® was created with an explicit ESG mandate. The two strategies have separate inceptions dates and track records; therefore, there are slight variances in position sizes between companies. Over time, the two strategies have largely converged due to the following factors:
Yes. Riverbridge relies on its own research to select each of the companies in its strategies.
Yes, Riverbridge has a formal Responsible Investing Policy that is reviewed annually and can be found here.
Given that ESG considerations are fully integrated into our investment philosophy, each member of our investment team is responsible for the implementation of our responsible investing policy. The Riverbridge investment team is responsible for continuing to monitor whether the companies we own meet all aspects of our investment criteria and are sustainably building their long-term earnings power. Our lead portfolio managers provide oversight on Riverbridge’s responsible investing efforts, including our PRI reporting process, the development of our Annual Report, and other related activities.