Environmental, Social &
Governance (ESG) 

This portfolio integrates ESG considerations characteristics and analysis into our investment decision-making process, at both the individual security and holistic portfolio level; while excluding stocks of specific companies involved in certain business models such as alcohol manufacturers, tobacco manufacturers, gambling, adult entertainment, and providing abortions as a means of birth control. Companies are automatically excluded if any of these activities are greater than 10% of a company’s total revenues. Portfolios are constructed to have overall ESG characteristics. GLOBALT utilizes a third-party ESG information provider, Sustainalytics, for its quantitative ESG metrics and characteristics. The process specifically excludes stocks of all companies that are in Sustainalytics Severe Risk category (Risk Score of 40 and above). The Risk Rating Score is evaluated in the context of its Sector Peer scores and factors of the overall portfolio.