Sustainable Investing
Letko Brosseau, the manager of the Funds, considers ESG-related factors as part of its overall investment process regarding issuers that are subject to equity investments, alongside traditional financial factors, when making investment decisions. By combining financial and ESG risk analysis into the investment management process, Letko Brosseau believes this better helps to manage risk and identify opportunities to generate long-term returns for the Funds. The consideration of how non-financial risks may be financially relevant to issuers is one of the assessments Letko Brosseau uses to guide the investment decisions.

Generally, ESG factors are not likely to drive an investment decision, save for a situation where the ESG risks related to a potential investee company are sufficiently extreme as to make it difficult to make an accurate assessment of the intrinsic value of the business. In this case, Letko Brosseau will exclude the potential investee company from consideration for the portfolio of the Fund. Letko Brosseau also applies an exclusionary or negative screening process pursuant to which it has identified specific industries it chooses its portfolios not to be exposed to or profit from, such as tobacco, gambling, pornography and companies involved in the mining of thermal coal, subject to de minimis thresholds.

While Letko Brosseau intends to employ an ESG integration approach in the investment decision making process for the Funds, ESG integration is not a primary objective nor strategy employed by the Funds, and the Funds are not intended to generate any ESG outcomes. ESG factors may play a limited role, and are not necessarily weighted heavily, in the Funds’ investment decision-making process. The ESG integration approach is focused on understanding all financially material information to deliver strong risk adjusted returns for the Funds and their investors.