Emerge
Sustainable Global Core Equity ETF

Ticker: EPZA

Investment Objective

EMPWR Sustainable Global Core ETF seeks to achieve long-term growth of capital by investing primarily, under normal circumstances, 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 unitholders 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including when there are more attractive opportunities or where the original investment thesis for a company is no longer valid.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 CAD EPZA
Ticker USD$ EPZA.U
AUM (As of September 30, 2022) $471,908 CAD
AUM.U (As of September 30, 2022) $ 343,450 USD
Fund Type Active ESG Equity
Inception Date September 8, 2022
Management Fees 0.8%
CUSIP CAD$ 29106W101
CUSIP USD$ 29106W200
Primary Exchange NEO Exchange
Number of Holdings 40- this is an approximate
Advisor Zevin Asset Management
Benchmark MSCI ACWI**

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

NAV

As of September 30, 2022

EPZA (CAD) $9.44
EPZA.U (USD) $6.87

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
Activity Involvement

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 September 8, 2022

Apple Inc.4.9%
Alphabet Inc.4.8%
Automatic Data Processing, Inc.4.5%
Microsoft Corporation4.1%
Analog Devices, Inc.3.4%
Visa, Inc.3.4%
Danaher Corporation3.3%
Unilever PLC3.2%
Emerson Electric Company3.2%
United Parcel Service, Inc.3.2%

Geographic Allocation

As of September 8, 2022

  • Americas 72.5%
  • Europe 10.5%
  • UK 9.5%
  • Asia 5.8%

Market Cap

As of September 8, 2022

  • Micro 1.2%
  • Small 2.6%
  • Medium 1.2%
  • Large 42.8%
  • Giant 50.6%

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.

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.

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.

Commissions, management fees, brokerage fees, and expenses may be associated with an investment in ETFs. Before investing, you should carefully consider the ETF’s investment objectives, strategies, risks, charges, and expenses. This and other information are in the ETF’s prospectus, which may be obtained by visiting www.emergecm.ca or www.sedar.com. Please read the ETF prospectus carefully before you invest. An investment in an ETF is subject to risks and you can lose money on your investment. Detailed information regarding the specific risks of the ETF can be found in the prospectus. There can be no assurance that the ETF will achieve its investment objective. The ETF’s portfolio is more volatile than broad market averages. Units of the ETF are bought and sold at market price and there can be no guarantee that an active trading market for the ETF units will develop or be maintained, or that their listing will continue or remain unchanged. ETFs are not guaranteed. Their values change frequently. Past performance may not be repeated. The statements contained in this document are based on information believed to be reliable and are provided for information purposes only. Where such information is based in whole or in part on information provided by third parties, we cannot guarantee that is accurate, complete or current at all times. This document does not provide investment, tax or legal advice, and is not an offer or solicitation to buy. Graphs and charts are used for illustrative purposes only and do not reflect future values or returns on investment. Particular investment strategies should be evaluated according to an investor’s investment objectives and tolerance for risk. Emerge Canada Inc. and related entities are not liable for any error or omission in the information or for any loss or damage suffered.