Sustainability Policy
Emerge Capital Management (“EMERGE”) was launched in 2016 to make actively managed investment strategies accessible to investors. We offer a comprehensive range of products, focusing on thematic and multi-sector investment strategies that have the potential to transform industries through innovation, sustainable growth, and market leadership.
Our Responsible Investment philosophy is integrated within the realm of these strategies that are offered through Exchange Traded Funds (ETFs).
Our Sustainability Offerings
Emerge EMPWR Unified Sustainable Equity ETF
Ticker: EMPW
Emerge EMPWR Sustainable Dividend Equity ETF
Ticker: EMCA
Emerge EMPWR Sustainable Select Growth Equity ETF
Ticker: EMGC
Emerge EMPWR Sustainable Emerging Markets Equity ETF
Ticker: EMCH
Emerge EMPWR Sustainable Global Core Equity ETF
Ticker: EMZA
Emerge’s Sustainability Belief
Investing in forward-thinking companies is a part of our core philosophy and product offering. We believe that the future of innovative products and services will be greatly influenced by global sustainability issues and the risk associated with them. Thus, investment managers that effectively assess environmental, social, and government “ESG” factors are more likely to generate sustained performance, while having a positive impact the society.
At Emerge, our focus on environment social, and corporate governance is centered around four broad base categories:
- ESG Materials Issues
- Climate Change
- Activity Involvement
- Diversity and Inclusion
What does it mean to invest in sustainable companies?
Sustainable investing directs investment capital to companies that incorporate Environ-mental, Social and Governance (ESG) factors into their business operations. These ele-ments are considered by organizations when assessing the ethical impact and sustain-ability of their firm. Each of the three components contains criteria that organizations evaluate in efforts to make their operations more sustainable and ESG-friendly.
Our Sustainability Approach and Methodology
Our approach to investing aims to integrate our investment objectives with the recommended UN princi-ples of responsible investing. Emerge integrates ESG considerations through proxy voting and engagement with companies and/or portfolio managers.
1
Incorporate sustainable investment analysis and decision-making process
2
Be active owners and incorporate sustainable ownership policies and practices
3
Seek appropriate disclosure on sustainability issues by the entities we invest in
4
Promote acceptance and implementation of principles within the investment industry
5
Work together to enchance our effectiveness in implementing the principles
6
Report on our activities and progress towards implementing the principles
Exclusion Filters
- Biological & Chemical Weapons
- Thermal Coal Extraction
- Gambling
- Tobacco Production
- Recreational Cannabis
- Alcohol Production
- Adult Entertainment
Decisional Filters
- Overall ESG Materiality Risk
Our Sustainability Consultant
Emerge has retained Milani to provide third party Sustainability Consulting on all Emerge investment products.
Before investing, you should carefully consider the ETF’s investment objectives, strategies, risks, charges and expenses. This and other information are in the prospectus, which may be obtained by visiting www.emergecm.ca. Please read the prospectus carefully before you invest.
You could lose money by investing in the Funds. ETF shares are not deposits or obligations of, or guaranteed or endorsed by, any bank. The Funds are subject to the principal risks noted below, any of which may adversely affect the Funds’ net asset value (NAV), trading price, yield, total return and ability to meet its investment objective. Unlike many ETFs, the Funds are not index-based ETFs.
The Funds are non-diversified, which means it can invest a greater percentage of its assets in a small group of issuers or any one issuer than a diversified fund can. A change in the value of one or a few issuers’ securities will therefore affect the value of the Fund more than if it was a diversified fund.
ESG Risk. Because the Funds evaluate ESG factors to assess and exclude certain investments for non-financial reasons, the Funds may forego some market opportunities available to funds that do not use these ESG factors. Information used by the Funds to evaluate ESG factors, including data provided by third-party vendors, may not be readily available, complete or accurate, and may vary across providers and issuers and within industries, which could negatively impact the Funds’ ability to apply its methodology and in turn could negatively impact the Funds’ performance. Currently, there is a lack of common industry standards relating to the development and application of ESG criteria which may make it difficult to compare the Funds’ principal investment strategies with the investment strategies of other funds that apply certain ESG criteria or that use a different third-party vendor for ESG data. In addition, the Funds’ assessment of a company may differ from that of other funds or an investor. As a result, the companies deemed eligible for inclusion in the Funds’ portfolios may not reflect the beliefs or values of any particular investor and may not be deemed to exhibit positive or favorable ESG characteristics if different metrics were used to evaluate them. Regulatory changes or interpretations regarding the definitions and/or use of ESG criteria could have a material adverse effect on the Funds’ ability to invest in accordance with its investment policies and/or achieve their investment objective.
These and other risks can be found in the ETFs’ prospectus.
The Funds are new funds, with a limited or no operating history and a small asset base. There can be no assurance that the Funds will grow to or maintain a viable size. Due to the Funds’ small asset base, certain of the Funds’ expenses and their portfolio transaction costs may be higher than those of funds with a larger asset base. To the extent that the Funds do not grow to or maintain a viable size, it may be liquidated, and the expenses, timing and tax consequences of such liquidation may not be favorable to some shareholders.