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Fairpointe Capital, LLC

PRI reporting framework 2020

You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities » Implementation processes » (A) Implementation: Screening

(A) Implementation: Screening

LEI 04. Types of screening applied

04.1. Indicate and describe the type of screening you apply to your internally managed active listed equities.

Type of screening

Screened by


Negative screening is one aspect of our ESG research process.  We utilize negative screening to exclude certain indusries and products from our portfolio.  For instance, energy is a sector we avoid.   We also avoid gun manufacturers, tobacco and gambling products.  

Screened by


We use positive screening methods to focus on U.S quality companies then conduct qualitative research on a company's product, activity and ESG practices.

Screened by

          We utilize MSCI's screens from time to time.


Occasionally, we will use a MSCI screen for idea generation.  However, a company must have a favorable rating from MSCI.  We then conduct our own ESG analytical research to be sure that we agree with MSCI's assessment

04.2. Describe how you notify clients and/or beneficiaries when changes are made to your screening criteria.

Fairpointe's ESG Equity Strategy's composite was created on January 1, 2018.  In our view, the process is still evolving and we are constantly improving our criteria.  We have not made significant changes to the process, which would warrant notifying clients.  In the event that a material change is made, we would notify clients in writing.

LEI 05. Processes to ensure screening is based on robust analysis

05.1. Indicate which processes your organisation uses to ensure ESG screening is based on robust analysis.

05.2. Indicate the proportion of your actively managed listed equity portfolio that is subject to comprehensive ESG research as part your ESG screening strategy.

05.3. Indicate how frequently third party ESG ratings are updated for screening purposes.

05.4. Indicate how frequently you review internal research that builds your ESG screens.

05.5. Additional information. [Optional]

Fairpointe's investment professionals meet weekly to review existing holdings and  discuss potential new holdings for the portfolio.  There is a ESG sub-committee, which also meets separately on a weekly basis, and sometimes more often, to discuss ESG factors for portfolio holdings.  

LEI 06. Processes to ensure fund criteria are not breached (Not Completed)