Sustainable Opportunities

A high-conviction, sustainability-themed strategy that invests in companies positioned to thrive as we transition to a more sustainable economy.

Overview

Portfolio

Performance

Impact

Documents

Strategy Overview

A high-conviction, sustainability-themed strategy that invests in companies positioned to thrive as we transition to a more sustainable economy.

Investment Process

The strategy uses a thematic approach to identify companies addressing sustainability challenges in three areas: Climate Solutions, Economic Inclusion, and Healthy Living. A team of fundamental, sector focused analysts conduct bottom-up financial analysis including a rigorous integrated review of financial and environmental, social, and governance (ESG) factors. The Investment Management Committee, comprised of portfolio managers and analysts, meets periodically to review and approve recommendations to the buy-list recommended by the analysts. A strategy team, headed by the lead Portfolio Manager, rebalances the portfolio on at least a quarterly basis to identify the best sub-set of names from the buy-list at that particular point of time. The team monitors portfolio exposures relative to the benchmark using an optimizer and scenario analysis as we review the impact of potential trades.

Contact Information:

Tom Simunovic

ESG Investment Strategy Specialist and Relationship Manager

tsimunovic@trilliuminvest.com617-532-6673

Portfolio Managers

Paul Hilton, CFA

Lead Portfolio Manager

Bio >

Laura McGonagle, CFA

Portfolio Manager

Bio >

Jeremy A . Cote, CFA

Portfolio Manager

Bio >

Benchmark

S&P 1500

Inception Date

2008

Strategy Assets*

$558m

Holdings

40-60

% Top 10 Holdings

33.57%

Initial Position Size

0-5%

Target Tracking Error

4-7%

Sector Deviation +/-

n/a

Annual Turnover

20-30%

Vehicle Type

Separate Account**

* Strategy Assets are supplemental

** Traditional separately managed accounts as well as model delivery through intermediary partnerships.

Portfolio

Equity Characteristics

as of 12/31/23

Sust. Opp.

S&P 1500

Market Capitalization
(weighted avg. billions)

$258.92

$661.75

Dividend Yield

1.27%

1.647%

P/E (FTM EST)

22.9x

19.3x

Price/Book

3.8x

3.9x

Est. 3-5 Yr. EPS Growth

13.55%

12.42%

ROIC

12.29%

17.30%

LT Debt/Capital

42.60%

41.95%

Sector Allocation vs. Benchmark

as of 12/31/23

Sust. Opp.

S&P 1500

Information Technology

29.6%

27.3%

Financials

14.7%

13.3%

Industrials

13.3%

9.7%

Health Care

11.5%

12.3%

Consumer Discretionary

10.6%

11.2%

Consumer Staples

6.7%

6.0%

Real Estate

5.2%

3.0%

Materials

5.1%

2.8%

Utilities

3.4%

2.4%

Communication Services

0.0%

8.0%

Energy

0.0%

4.0%

Sector Allocation, Equity Characteristics and Top Holdings based on a representative account as of 12/31/2023 and exclude cash.

Performance

As of 12/31/23

.

QTR

YTD

1 Year

3 Year

5 Year

10 Year

Inception
(10/1/2008)

Gross of Fees

11.3%

12.3%

12.3%

0.3%

12.8%

9.2%

10.0%

Net of Fees

11.1%

11.7%

11.7%

-0.3%

12.1%

8.5%

9.2%

S&P 1500

11.8%

25.5%

25.5%

9.8%

15.4%

11.8%

11.8%

Annualized time-weighted returns for Sustainable Opportunities composite through 12/31/2023. Time periods less than one year are not annualized. The Sustainable Opportunities Composite was created on August 28, 2011 and has an inception date of October 1, 2008.  Composite Assets are $335.1 million as of 12/31/2023. Past performance is no guarantee of future results. Every investment carries the potential for both profit and loss. IMPORTANT: Please see important performance disclosures below.

Documents

Fact Sheet

Quarterly Commentary

Impact Report

Additional Information

For AdvisorsFor InstitutionsFor Private Clients

Trillium Asset Management, LLC (Trillium) claims compliance with the Global Investment Performance Standards (GIPS®). Trillium is an investment advisor registered with the Securities and Exchange Commission under the Investment Advisors act of 1940. For the purposes of establishing and maintaining compliance with the GIPS standards, the firm has elected to define itself exclusive of wrap fee assets under management historically until 10/1/2013. Effective 10/1/2013 the firm has redefined itself to include wrap-fee assets under management. Previously, the firm included only institutional and high net worth accounts. The firm was redefined to include the wrap-fee business to reflect all business lines managed by the organization.

The Sustainable Opportunities Strategy Composite was created on August 28, 2011 and has an inception date of October 1, 2008, and includes all discretionary portfolios managed in the Sustainable Opportunities style. The U.S. Dollar is the currency used to express valuations and performance.

Trillium Sustainable Opportunities Strategy seeks to provide long-term investment growth by investing in companies positioned to thrive as we transition to a more sustainable economy. Time-weighted returns are presented for all periods net of trading costs and both net and gross of management fees, includes the reinvestment of all income, and is vested and calculated on a trade date basis. Net-of-fee performance is calculated using actual management fees.  Individual performance will vary from that of the composite.

Lists, descriptions, and GIPS compliant presentations are available upon request for all Trillium performance composites.

The S&P Indices are widely recognized, unmanaged indices of common stock.It is not possible to invest directly in an index. The S&P 1500 combines three indices, the S&P 500, the S&P MidCap 400, and the S&P SmallCap 600 to cover approximately 90% of the U.S. market capitalization.

Past performance is no guarantee of future results. Every investment carries the potential for both profit and loss. The strategy’s ESG policy could cause it to make or avoid investments that could result in the strategy underperforming similar strategies that do not have an ESG policy.

Investments in smaller and medium companies generally carry greater risk than is customarily associated with larger companies for various reasons, such as narrower markets, limited financial resources and less liquid stock. Investing in foreign securities is riskier than investing in domestic securities.