Equity Compass Portfolios & Products
Socially Responsible
Select Quality Portfolio

Objective

Sector balanced strategy investing in high-quality stocks with favorable value and price momentum characteristics. Only those companies that qualify based on the socially responsible criteria developed by the industry leader RiskMetrics Group are considered for investment.

Highlights

Opportunistic stock selection
  • Leverages the insights of RiskMetrics Group, a leading provider of data and analysis on companies’ approach to and management of socially responsible issues
  • Based on fundamental, technical, and behavioral themes that have historically outperformed
  • Use of quantitative models help evaluate more information on a much wider universe of stocks
Portfolio tactics to maximize risk-adjusted return potential
  • Concentrated, high-conviction portfolio that invests across styles and market capitalization in order to seek to exploit the most attractive investment opportunities
  • Diversified across ten S&P sectors and equal weight positions in 30 stocks
  • Rebalanced quarterly to attempt to optimize exposure to drivers of excess returns

Investment Process

Investment Strategy

  • Socially responsible (values-based) investing seeks to maximize financial returns while promoting social good. According to the Social Investment Forum, almost one out of every nine dollars under professional management in the U.S. today is involved in socially responsible investing.
  • Uses socially responsible screen developed by RiskMetrics Group that ranks companies based on the following criteria: Adult Entertainment, Alcohol, Animal Testing, Board Composition, Contraceptives/Abortifacients, Environment, Firearms, Gambling, Stem Cell Research, and Tobacco.
  • EquityCompass’ quantitative models are used to identify high-quality underpriced stocks with favorable momentum and valuation characteristics.
  • Portfolio construction and management focus on maximizing expected returns while incorporating risk management strategies.
  • Adheres to a rules-based investment process to eliminate subjective biases in investment decisions.