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Emerge
Sustainable Global Core Equity ETF

Ticker: EMZA

Investment Objective

The investment objective of Emerge EMPWR Sustainable Global Core Equity ETF (the Fund) is to seek long-term growth of capital.

We seek to achieve this objective by investing primarily in equity securities of issuers anywhere in the world that meet the Emerge ETF’s Sustainability investment criteria.

The investment objectives of the Emerge ETF can only be changed with the approval of a majority of the unit holders at a meeting called for such purpose.

Fund Description

In order to achieve its investment objective, this Emerge ETF invests at least 80% of its net assets in equity securities of issuers anywhere in the world, including emerging market countries, that, at the time of investment, meet the Emerge ETF’s Sustainability investment criteria. The Emerge ETF may invest in the securities of issuers of all capitalizations but intends to invest primarily in securities of large-capitalization issuers.

Equity securities include common stocks, partnership interests, business trust securities, and other equity investments or ownership interests in business enterprises. The Emerge ETF may also obtain exposure to equity securities by investing in ADRs.

Zevin employs a multidisciplinary investment process that combines fundamental research and global macro considerations to identify securities for investment that it believes have the potential to outperform and minimize significant losses in declining markets. Because Zevin seeks to identify securities for investment that have the potential to outperform and minimize significant losses in declining markets, the Emerge ETF may underperform the broader market during periods of rising markets. Zevin identifies securities to be sold for several reasons, including when there are more attractive opportunities or where the original investment thesis for a company is no longer valid.

About Our Sub Advisor

Jane Li

Portfolio Manager, Zevin Asset Management

Since its founding in 1997, Zevin Asset Management has distinguished itself as an investment manager with an expertise in socially responsible investing. Our guiding philosophy is that less risk can lead to better returns over time, and we can back up that belief with a 20-plus-year track record that has been tested over a variety of market conditions.

Since our inception, social responsibility has been at the forefront of our work. We integrate environmental, social, and governance (ESG) analysis into our investment process as an indicator of risk and opportunity, and we engage directly with companies on clients’ behalf to achieve meaningful improvements in companies’ behaviors. We are also a Certified B Corporation and a 100% employee-owned, majority women-owned firm.

As a portfolio manager and an equity analyst, Jane employs fundamental research to select investment opportunities and construct portfolios that meet our clients’ needs. She is particularly excited to align her experience in investing with her desire to make an impact by helping clients express their mission and values through their investments and working with portfolio companies to create a healthy and sustainable future. Jane first became intrigued by the stock market in high school and was inspired by idea that anyone regardless of their educational background, economic status, and career field can be an “owner” of these great businesses and benefit from their financial success. Since then, she has been a student of investing and now has over 18 years of professional investment experience. Over the years, she has interacted with hundreds of executives and developed industry knowledge across various sectors around the globe.

Before joining Zevin Asset Management, Jane was a portfolio manager and director of research at Grace Capital in Boston. At Grace Capital, she was integral to the equity and sustainability research process as well as management of client portfolios and relationships. Prior to joining Grace Capital, Jane was a founding partner and senior equity analyst at Monarch Partners Asset Management, a fund manager and equity analyst at Fidelity Investments, and an analyst at Goldman Sachs. She graduated from the University of California, Berkeley and earned an MBA from Stanford Graduate School of Business.

Jane is a board trustee for Boston by Foot, a member of the Finance Committee for the Meadowbrook School of Weston, and a member of the Boston Economic Club. Jane is a proud mother of two and enjoys spending quality time and traveling with her family

Who Should Invest?

This Emerge ETF may be suitable for investors who:

  • seek exposure to equity securities of issuers anywhere in the world, including emerging market countries, that meet the Emerge ETF’s Sustainability investment criteria
  • have a long-term investment perspective and
  • have a medium risk tolerance.
Fund Facts
Ticker EMZA
AUM as of December 09, 2022 $501,386.84 USD
Fund Type Active ESG Equity
Inception Date September 8, 2022
Management Fees 0.85%
CUSIP 29102W 303
ISIN US29102W3034
Primary Exchange C’boe BZX Exchange
Typical Number of Holdings 40* Approximate
Advisor Zevin Asset Management
Distribution Emerge Capital Management

Funds Distributed by ALPS Distributors, Inc.

Benchmark MSCI ACWI GR**

**The fund is an actively managed exchange-traded fund (ETF) that does not seek to replicate the performance of a specified index.

Fees
Management Fee 0.85 BPs

For more information please see the Prospectus.

Commitment to Sustainability

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 Material issues
Climate change
Diversity and Inclusion
Social Governance

Emerge considers ESG factors within its securities selection process for each equity security for the Fund. Emerge assesses whether a company meets the Fund’s ESG standards based on its proprietary ESG framework. Emerge uses ESG research, ratings, and analytics from independent third-party data providers to screen investments based on ESG criteria determined by Emerge. The Fund may hold securities of issuers for which third-party data is not available. Where an issuer has not been assigned a rating by the third-party data provider, Emerge’s ESG analysis incorporates publicly available data.

Emerge has the right to change the third-party data providers that support its ESG framework at any time. In determining whether an issuer meets Emerge’s ESG investment criteria, Emerge considers: (i) negative screening criteria to eliminate certain types of issuers in light of social and environmental considerations; and (ii) governance-related risk ratings published by third party data providers, including Sustainalytics, designed to measure the degree to which a company’s economic value is at risk driven by the magnitude of a company’s unmanaged ESG risks. [As of the date of this Prospectus,] Emerge applies a negative screen to exclude companies for investment that derive 20% or more of their revenues from biological and chemical weapons, thermal coal extraction, gambling, adult entertainment, tobacco production, recreational cannabis and alcoholic beverages. Emerge may modify the above list of negative screens at any time, without prior shareholder approval or notice. ESG risk ratings data compiled by third-party data providers forms the basis for Emerge’s governance-related risk assessment and screening. Emerge may consider excluding, reducing or eliminating exposure to issuers with high ESG risk ratings, as determined by one or more third-party data providers.

All Sustainability-related investment decisions made by Emerge are discussed by the Sustainability committee and documented in a report. Should Emerge decide to divest a company that has been identified, the divestiture will be done in an orderly manner; within a 90-day period

Top 10 Holdings

As of December 09, 2022

Holdings and allocations are subject to change.

Automatic Data Processing, Inc.

4.7%

Apple Inc.

4.4%

Visa Inc.

4.4%

Unilever PLC

4.1%

Microsoft Corporation

4.0%

Analog Devices, Inc.

3.9%

Linde PLC

3.7%

Alphabet Inc.

3.6%

Emerson Electric Company

3.5%

United Parcel Service, Inc.

3.4%

Geographic Allocation

As of December 09, 2022

Market Cap

As of December 09, 2022

Holdings and allocations are subject to change.

NAV Historical Change

NAV and Market Price

As of December 09, 2022

NAV (USD) $25.07
NAV Change $0.16 | 0.7%
Median Bid Ask Spread (30 Day) $0.05
Market Price $25.08
Market Price Change $0.16| 0.6%
Days Trading Volume 0

Performance

As of October 31, 2022

EMZA Performance Annualized

EMZA 1 Year 5 Year 10 Year Since Inception
Nav % % % %
Market Price % % % %

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal will fluctuate so that an investor’s shares when redeemed may be worth more or less than the original cost.

Returns for less than one year are not annualized. Net asset value (“NAV”) returns are based on the dollar value of a single share of the ETF, calculated using the value of the underlying assets of the ETF minus its liabilities, divided by the number of shares outstanding. The NAV is typically calculated at 4:00 pm Eastern time on each business day the New York Stock Exchange is open for trading. Market returns are based on the trade price at which shares are bought and sold on the NYSE Arca, Inc. using the last share trade. Market performance does not represent the returns you would receive if you traded shares at other times. Total Return reflects the reinvestment of distributions on ex-date for NAV returns and payment date for Market Price returns. The market price of the ETF’s shares may differ significantly from their NAV during periods of market volatility.

EMZA Performance Cumulative

EMZA 1 Month 3 Month YTD Since Inception
NAV 7.16% -% 2.79% 2.79%
Market Price 6.92% -% 2.69% 2.69%

EMZA Performance Calendar Year

EMZA 2022 2023 2024 2025
Nav % % % %
Market Price % % % %

Premium/Discount

(Recent Premium/Discount)

As of December 09, 2022

NAV 4PM Mid-Point Difference Premium Discount
$25.07 $25.08 $0.01 0.03%

Historical Data

Greatest Premium X
Greatest Discount x | x
Number of Days At:
x
Premium: x
NAV: x | x
Discount: x

 

Days Within Percent of Nav
X
Percent of Days +/- 0.5% Of NAV: x | x
Number of Days +/- 0.5% Of NAV: x
Premium: x
NAV: x | x
Discount: x

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/our-products/emza or www.sedar.com. Please read the prospectus carefully before you invest.

Benchmark Index: The MSCI ACWI Index is designed to represent performance of the full opportunity set of large- and mid-cap stocks across 23 developed and 24 emerging markets It is not possible to invest directly in an index.

Principal Risks

You could lose money by investing in the Fund. ETF shares are not deposits or obligations of, or guaranteed or endorsed by, any bank, and are not insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other agency of the U.S. government. The Fund is subject to the principal risks noted below, any of which may adversely affect the Fund’s net asset value (NAV), trading price, yield, total return and ability to meet its investment objective. Unlike many ETFs, the Fund is not an index-based ETF.

The Fund is 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.

Market Risk. The market values of securities or other investments owned by the Fund will go up or down, sometimes rapidly or unpredictably. The market value of a security or other investment may be impacted by economic, market, political, and issuer-specific conditions. Market risk may affect a single issuer, industry, or sector of the economy, or it may affect the market as a whole. Stock prices tend to go up and down more dramatically than those of debt securities. A slower-growth or recessionary economic environment could have an adverse effect on the prices of the various stocks held by the Fund.

Foreign Securities and Emerging Markets Risk. The Fund’s foreign investments may be adversely affected by political, economic, and social instability and volatility, changes in economic or taxation policies; difficulty in enforcing obligations; lack of or ineffective government supervision and regulation of securities and currency markets, trading systems, and brokers; decreased liquidity and increased volatility; lack of or limited availability of information, which can impede the Fund’s ability to evaluate such investments; and trading. Investing in emerging markets may accentuate these risks. restrictions and economic sanctions.

Large Capitalization Company Risk. Large capitalization companies may fall out of favor with investors based on market and economic conditions. In addition, larger companies may not be able to attain the high growth rates of successful smaller companies and may be less capable of responding quickly to competitive challenges and industry changes.

Small- and Mid-Capitalization Companies Risk. Securities issued by small- and mid-capitalization companies may be more volatile in price and less liquid than those of large companies and may involve more risks.

ESG Risk. Because the Fund evaluates ESG factors to assess and exclude certain investments for non-financial reasons, the Fund may forego some market opportunities available to funds that do not use these ESG factors. Information used by the Fund 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 Fund’s ability to apply its methodology and in turn could negatively impact the Fund’s 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 Fund’s 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 Fund’s 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 Fund’s portfolio 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 Fund’s ability to invest in accordance with its investment policies and/or achieve its investment objective.

These and other risks can be found in the ETF’s prospectus.

The Fund is a new fund, with a limited or no operating history and a small asset base. There can be no assurance that the Fund will grow to or maintain a viable size. Due to the Fund’s small asset base, certain of the Fund’s expenses and its portfolio transaction costs may be higher than those of a fund with a larger asset base. To the extent that the Fund does 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.

The Funds are distributed by ALPS Distributors, Inc.

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Copyright © 2022 Emerge Capital Management, Inc., (“Emerge”) is an investment adviser registered with the Securities and Exchange Commission. The registration of an investment adviser does not imply any level of skill or training. This material does not constitute the provision of investment advice or the solicitation of investment advisory services in any jurisdiction where such offer or solicitation is unlawful. Investment advice is only provided by Emerge to clients who enter into an investment management agreement with Emerge. Information provided by Emerge Capital Management is for general educational and informational purposes only. It does not constitute any form of advice or recommendation to buy or sell any securities mentioned. Certain of the statements contained herein are statements of future expectations and other forward-looking statements that are based on the current views and assumptions of Emerge Capital Management and involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those expressed or implied in such statements. Past performance is no guarantee of future results. Equities may decline in value due to both real and perceived general market, economic, and industry conditions. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities mentioned in this presentation.
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