Emerge
Investment Objective
EMPWR Sustainable Growth Equity ETF seeks to achieve long-term growth of capital by investing primarily, under normal circumstances, in equity securities of U.S. mid capitalization issuers 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 mid-capitalization issuers in the U.S. that, at the time of investment, meet the Emerge ETF’s Sustainability investment criteria.
Grace Capital applies a “bottom-up” research process that seeks to identify companies that it believes have long-term positive fundamentals trading at a discount to fair value based on Grace Capital’s proprietary discounted cash flow, valuation models. Grace Capital identifies securities for investment that it believes have the potential for earnings or revenue growth, including companies it believes have the ability to pay high dividends. Grace Capital’s strategy primarily focuses on identifying issuers that it believes have histories of steady revenue growth, consistent cash flow profitability, and earnings quality. Grace Capital identifies securities to be sold for several reasons, including when it believes the security is overvalued.
About Our Sub Advisor
 |
Catherine Faddis, CEO/CIO, Grace Capital |
Grace Capital was founded in February of 2006 and is led by Catherine Faddis, President & CIO. The firm currently has $203 million in assets under management with a strong, 16-year GIPS-verified track record. Grace Capital is focused on selecting under-valued companies that have long histories of steady revenue growth, consistent cash profitability, and stakeholder-friendly management teams.
Cate Faddis is the President and Chief Investment Officer of Grace Capital. Cate, a CFA and member of the CFA Institute, was previously an Analyst at Putnam Investments, and Auditor and CPA at Deloitte. Cate serves on the Executive Board of the Boston Economic Club, on the Board of Directors of La Tienda Corp, on the Corporator Board of Cambridge Savings Bank, and on the Board of Overseers for the Children’s Museum of Boston. She is a frequent guest correspondent on CNBC. Cate is multilingual, a proud mother of twins, and a beekeeper. She earned a Bachelor in Business Administration at the College of William & Mary and an MBA from Harvard Business School.
Who Should Invest?
This Emerge ETF may be suitable for investors who:
- seek exposure to equity securities of mid-capitalization issuers in the U.S. that meet the Emerge ETF’s Sustainability investment criteria
- have a long-term investment perspective and
- have medium risk tolerance.
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 June 30th, 2023
Apple Inc.7.9%
Microsoft Corporation7.8%
NVIDIA Corporation4.5%
CACI International, Inc.4.1%
Merit Medical Systems, Inc.3.7%
Alphabet Inc.3.6%
Novartis AG3.6%
Walmart Inc.3.4%
Novo Nordisk3.4%
City Holding Company3.4%
Geographic Allocation
As of June 30th, 2023
- Americas 92.9%
- Europe 7.0%
Market Cap
As of June 30th, 2023
- Small 6.0%
- Medium 11.4%
- Large 34.4%
- Giant 48.1%
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.
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.
