Black Diamond Impact Core Equity fund designed to delive long-term capital growth and current income
Purpose Investments has announced a new option for Canadian equity investors who wish to help make a positive ESG impact with their investing dollars.
The Black Diamond Impact Core Equity Fund has started trading on the Toronto Stock Exchange.
The new global equity fund, featuring ETF units (TSX: BDIC) as well as Class A, Class F, and Class I units, is now available to investors. The Fund provides diversified exposure to equity securities of global corporations with a forward-looking sensitivity to ESG considerations.
The fund aims primarily to deliver long-term capital growth and current income. It provides diverse exposures across equity securities of companies across the world, focusing on issuers that demonstrate a forward-looking sensitivity to ESG factors.
This mandate requires the portfolio management team to thoroughly evaluate prospects by looking at governance models, stakeholder alignment, incentives, and capital allocation.
The fund's sub-advisor is Black Diamond Asset Management Inc.
According to the fund’s prospectus, the sub-advisor to the fund will use a fundamental process to construct a portfolio of companies through individual stock selection, with attention paid to both upside potential and downside risk. In analysing ESG considerations and issues, the sub-advisor will use both proprietary fundamental research and analysis of available inputs and reports from third-party providers including Bloomberg, Sustainalytics, Standard and Poor’s, and MSCI.
The fundamental investment research process will include a careful examination of governance structures, stakeholder alignment, incentives, and capital allocation. There will also be additional considerations made around diversity, equity and inclusion, as well as company culture and values.
Generally, the portfolio selection process will also exclude issuers whose revenues place them within industries that have clear negative social impacts, including tobacco, gambling, controversial weapons, and fossil fuels.
