Overview
The Socially Aware Investment (SAI) Large Cap Growth Portfolios are designed for investors seeking long-term capital appreciation through investing in large-capitalization companies with the potential for high future earnings growth.
The SAI research team, headed by Mary Jane McQuillen, actively incorporates environmental, social and governance [ESG] issues into the portfolio construction process. SAI convergence parameters include, but are not limited to:
- innovative workplace policies, employee benefits and programs;
- environment management system strength, eco-efficiency and life-cycle analysis; and
- community involvement, strategic philanthropy, and reputation management.
In addition to the integration of SAI sustainability research, active issue engagement (e.g., human rights, water scarcity, and renewable energy) and advocacy efforts at the company level are applied to portfolio assets.
Investment Objective
The SAI Large Cap Growth strategy seeks to:
- focus on consistent growth of capital while managing volatility;
- outperform the Russell 1000 Growth Index 1 over a full market cycle with less risk;
- perform well in rising markets and outperform the Russell 1000 Growth Index in declining markets; and
- actively evaluate a company's environmental, social and governance (ESG) of business performance to gauge its level of social awareness
Investment Philosophy
The Portfolio Managers believe that:
- ownership of high-quality, large-company stocks can provide the potential for superior long-term performance
- competitive risk-adjusted returns may be achieved by capitalizing on the convergence between a company's investment potential and how it manages the ESG aspects of its business; and
- a price sensitive, buy-and-hold approach to stock selection seeks favorable entry-point for growth at a reasonable price.
Investment Process
We seek to:
Define an initial investment universe
- consider companies with market capitalizations similar to those in the S&P 500 Index
Apply fundamental & business model analysis
- identify companies that can sustain high growth rates, have competitive advantages and maintain sustainable margins;
Utilize key investment valuation measures
- select from these candidates those with attractive valuations using measures such as reinvestment and growth rates and discount rate (risk);
Select securities and construct portfolio
- identify relevant socially aware considerations for each sector. Compare management culture, programs and corporate policies against "best of class"; and
Monitor continuously
- re-examine a current holding when fundamentals decline, full value is reached or a decline in company's social/environmental performance causes it to violate social screen.
Investment Risks
All investments involve risk, including loss of principal and there is no guarantee that investment objectives will be met.
Investments may also be made in ADRs and other securities of non-U.S. companies in developed and emerging markets which involve risks in addition to those ordinarily associated with investing in domestic securities, including the potentially negative effects of currency fluctuation, political and economic developments, foreign taxation and differences in auditing and other financial standards. These risks are magnified in emerging markets.
Management Team
Established in 2005, ClearBridge Advisors has over 45 years of asset management experience. The firm is known for its research-driven, fundamental approach to investing, offering actively managed U.S. equity products in a wide range of capitalizations and styles.
Investment Management
Scott Glasser
Managing Director
- Senior Portfolio Manager
- 20 years of investment industry experience
Peter Bourbeau
Managing Director
- Portfolio Manager
- 20 years of investment industry experience
Mary Jane McQuillen
Managing Director
- Portfolio Manager
- Head of Environmental, Social and Governance Investment
- 15 years of investment industry experience