Our investment decisions are based on intensive, multi-faceted research and thorough, fundamental analysis. When determining the suitability of a specific investment for a client’s individualized portfolio we consider a variety of factors. Tangible investment factors include financial information, valuation, and macroeconomic indicators. Intangible investment factors include those related to the environment, society, and corporate governance (ESG). ESG factors are integrated into our investment process throughout the lifecycle of an investment. Identifying the potential impact of ESG factors is a more subjective process than traditional financial analysis. The evaluation of ESG factors is dependent on the industry, company, and management, and therefore will vary with each investment.
Portfolios are managed to provide long-term rewards commensurate with acceptable risk. It is our belief that integrating ESG risk analysis into the investment process along with other investment criteria results in strong long-term investment returns for our clients.
Sit Investment Associates manages an ESG equity growth strategy that invests primarily in companies we believe have strong ESG practices. In addition to the fundamental financial analysis, our stock selection process for the ESG strategy takes into consideration ESG screens from third-party providers that rank companies within an industry or sector based on various ESG characteristics, or alternatively our own in-depth analysis of a specific company’s ESG practices.
It is our belief that integrating ESG risk analysis into the investment process results in strong long-term investment returns for our clients.