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Over the 34-year track record of the Small Cap Growth Portfolio, investors have enjoyed compelling risk-adjusted returns over a full market cycle while also investing in ways that align with their values and demonstrate responsible investing-minded practices.
Long-term performance vs. Benchmark
Inception through 12/31/2022
Periods greater than one year are annualized; Performance related information is presented as supplemental information to the compliant presentation included herein. Inception Date: 06/30/1988.
Impact Metrics
82.2% Lower Carbon Risk*
The Small Cap Growth Portfolio has 82.2% lower carbon risk than the Russell 2000 Growth®
AA Rated*
The Small Cap Growth Portfolio earned a 7.92 ESG Quality Score and an overall ESG Rating of AA from MSCI
0% Exposure to Businesses In:*
Fossil Fuels No exposure to companies that own fossil fuel reserves
Tobacco No exposure to tobacco producers as well as tobacco distributors, suppliers, and retailers
Gambling No exposure to gambling-facility operators as well as support products & services
Weapons No exposure to companies with ties to the manufacture of conventional (including depleted uranium), biological/chemical, or nuclear weapons systems and components
Civilian Firearms No exposure to companies that manufacture or distribute firearms and small arms ammunitions for civilian markets
ESG Snapshot: Examples of Responsible Investing Characteristics in Action
Environmental
Provides resource conservation solutions
Increases energy efficiency
Optimizes physical assets to reduce environmental impact
Exercises responsible waste-management practices
Reduces greenhouse gas emissions
Utilizes renewable energy
Descartes Systems’ (DSGX) solutions allow its customers to optimize their labor and asset utilization, helping to reduce their environmental footprint.
Owned in Small Cap Growth since 2019
Descartes offers a logistics technology platform that digitally improves the productivity, performance, and security of logistics-intensive businesses.
Descartes’ commitment to environmental responsibility can be seen in the following ways:
Descartes solutions streamline logistics processes, allowing its customers to reduce fuel consumption and paper. This led to a reduction of their overall greenhouse gasses and other polluting emissions, saving customers over 696 thousand tons of CO2 in 2021.
Descartes technology solutions saved over 1 billion liters of fuel in 2021 by consolidating shipments and optimizing routes.
Descartes reduced customers’ paper consumption in 2021 by over 2.84 billion sheets of paper by automating manual processes such as paper-based shipment, filings, invoices, and driver logs.
Exponent’s (EXPO) science and engineering expertise helps its diverse customer base create safe, healthy, and sustainable solutions for the world.
Owned in Small Cap Growth since 2016
Exponent is a provider of multidisciplinary science and engineering consulting services to corporations, insurance carriers, government agencies, law firms, and individuals.
Exponent’s commitment to social responsibility can be seen in the following ways:
Exponent provides health and safety solutions for a variety of industries including utilities, consumer products, and life sciences & healthcare.
Exponent is recognized for its reactive analysis of accidents and failures as well as its proactive preventative work focused on various risks which helps companies to innovate safely.
For example, Exponent was engaged to identify the risk of failure across energy grid assets in California to protect the safety of residents. Exponent leveraged its engineering and data management expertise to proactively review power lines and towers to identify which structures were at most risk of failure.
Incentivizes management team to prioritize long-term metrics
Sets sustainable goals with accountability and tracking
Maintains strong balance sheet that allows flexibility and discourages shortcuts
Reinvests in business for future benefits
Kinsale Insurance’s (KNSL) compensation structure incentivizes long-term behavior that is well aligned with customer and shareholder outcomes.
Owned in Small Cap Growth since 2022
Kinsale is a specialty insurer focused on the excess and surplus insurance market with expertise in unique and hard-to-place risks.
Kinsale’s commitment to governance responsibility can be seen in the following ways:
Employees are incentivized to assess and underwrite risks and polices in an accurate and disciplined manner. High employee retention and long tenure allows Kinsale to accurately price and identify risk thereby allowing them to write policies that others are reluctant to service.
Employee compensation is aligned with the accuracy of claims they have underwritten.
As employees progress within the organization, they are provided with greater responsibility and have the ability to work on larger and more complex claims.
Risks must be evaluated in terms of years rather than quarters as some claims may materialize even after the policy concludes.
Riverbridge Investment Team Analysis
Mention of companies/stocks herein is for illustrative purposes only. Please see Disclosures Section for additional information.
