Small and Mid-Cap mutual fund prioritizes investments based on strong ESG characteristics
ST. LOUIS–(BUSINESS WIRE)–Kennedy Capital Management, Inc. (“Kennedy Capital”), a provider of investment management services to pension funds, endowments, foundations and high net-worth individuals, today announced that it has launched a small and mid-cap (SMID) mutual fund optimized for Environmental, Social and Governance (ESG) principles. The ESG SMID Cap mutual fund (Ticker: KESGX) applies a proprietary approach to ESG integration, incorporating an inclusionary and exclusionary stock selection framework in the portfolio construction process.
“Bringing a dedicated ESG mutual fund to market provides an additional level of rigor for clients focused on investing in well-managed, environmentally and socially responsible companies,” said Donald Cobin, CFA®, President, Chief Executive Officer, and Chairman of Kennedy Capital. “We believe the small and mid-cap investment universe offers compelling opportunities for ESG-oriented investors, and our investment team is well-positioned to help clients capitalize on the unique characteristics of this portion of the equity market.”
The ESG SMID Cap fund utilizes the same approach as the Kennedy Capital ESG SMID Cap strategy. Launched in January 2017, the strategy prioritizes investment in companies that leverage an environmental or societal advantage to compete effectively in their end markets. In aggregate, the constituents of the portfolio have significantly lower greenhouse gas emissions and favorable governance scores compared to the Russell 2500TM Index. In addition, the strategy is fossil fuel free and has no exposure to the producers of tobacco, civil firearms, or controversial weapons.
The ESG SMID Cap mutual fund is managed by Christian McDonald, CFA®, a 13-year veteran of Kennedy Capital. “The bottom-up, labor intensive investment process employed by Kennedy Capital enables our 15 sector-specific analysts to identify attractive investment candidates with strong ESG profiles,” said McDonald. “In addition, our ongoing interactions with senior management teams provide a platform for engaging in discussions on ESG issues, which is further bolstered by our industry experience that helps anticipate and identify material risks and opportunities. Overall, our approach is built to truly assess and address the complexity of ESG analysis for small and mid-cap companies.”
A focus on ESG and sustainability has long been a key priority for Kennedy Capital itself. The firm has worked over time to reduce its own environmental footprint, utilizing a Sustainable Green PartnerSM for printed materials, installing energy-efficient lighting in its offices, and offsetting paper consumption with newly planted trees in reforestation projects. In addition, Kennedy Capital has managed accounts with a socially responsible mandate for more than 25 years.
About Kennedy Capital Management
Founded in 1980, St. Louis-based Kennedy Capital Management, Inc. delivers investment strategies to corporate and public pension funds, endowments, foundations, multi-employer plans and high net-worth individuals. As of June 30, 2019, Kennedy Capital Management managed more than $4 billion in assets. The privately held, employee-owned company specializes in the management of small and mid-cap strategies across the growth-value spectrum for its clients that integrates ESG considerations into its research and investment process. Kennedy Capital Management is an investment adviser registered with the U.S. Securities and Exchange Commission. For more information, visit www.kennedycapital.com, email [email protected], or call 1-800-859-5462.
Risks: Equity securities (stocks) are generally more volatile and carry more risk than fixed income securities (bonds) and money market investments. The net asset value per share of the ESG SMID Cap fund (the Fund) will fluctuate as the value of the securities in the portfolio changes. Common stocks, and funds investing in common stocks, generally provide greater returns over long time periods than fixed income securities. The Fund is comprised primarily of equity securities and is subject to market risk. Stocks may decline due to general market and economic conditions or due to company specific circumstances. The Fund is comprised of small-mid capitalization (“SMID cap”) stocks. SMID cap stocks typically carry additional risk, since smaller companies generally have a higher risk of failure, and historically have experienced a greater degree of volatility. ESG criteria may affect the Fund’s exposure to risks associated with certain issuers, industries and sectors, which may impact the Fund’s investment performance. The Fund may forgo some market opportunities available to funds that do not use these criteria. Small-mid capitalization companies generally have a greater risk of failure, and their stocks generally have greater volatility, than large companies. The Fund is newly organized and thus has no track record of its own on which to base an investment decision.
The Russell 2500™ Index measures the performance of the small to mid-cap segment of the U.S. equity universe, commonly referred to as “smid” cap. It includes approximately 2500 of the smallest securities based on a combination of their market cap and current index membership. You cannot invest directly into an index.
Investors should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. This and other important information is contained in the fund’s full prospectus and summary prospectus, which can be obtained by calling (833) 737-7788. Please read carefully before investing.
The fund is distributed by IMST Distributors, LLC.
Contacts
For Kennedy Capital Management
Patrick Kane
[email protected]
(314) 982-8726
