The GCA Sustainable Growth Fund invests in sustainable energy, food, and water companies, and greater emphasis is placed on the environmental component of ESG. Our coverage universe was specifically crafted to include both pure-play companies providing sustainable products and services, as well as legacy companies with >50% of revenue from sustainability initiatives. We look for companies whose products promote resource efficiency.
The GCA Emerging Markets Sustainable Growth Fund invests in a concentrated portfolio of companies that embrace robust environmental, social and governance (ESG) standards across emerging and frontier markets.The coverage universe includes thematic sectors aligned with UN Sustainable Development Goals including Climate Change, Health & Nutrition, Water & Waste Management, Financial Inclusion, and Communication & Education.
Once a company is deemed to be within the coverage universe, the portfolios are constructed of companies that offer the best risk-adjusted return potential. In determining risk-adjusted returns, ESG assessments factor into our estimate of a company's cost of capital and therefore the intrinsic value of the security. Companies with high ESG assessments will have lower costs of capital and therefore higher valuations than those with low ESG assessments.