ESG Solutions Tailored to Unique Client Objectives
Collaboration and customization lie at the heart of our relationship and portfolio management process. ESG is no different. Rather than offer packaged products that reflect our values, we have long emphasized adapting Appleton’s core investment strategies to address your ESG goals.
Separate accounts that reflect what matters most to you.
Proactive, targeted investments that support specific goals and motivations defined by the client at the outset of the relationship.
Exclusionary screening can be implemented in consultation with clients.
Hybrid portfolios selectively screen securities and target capital investments in accordance with a client’s ESG ideals.
Confidence derived from a time-tested investment process.
- All bonds purchased must be investment-grade and Appleton credit approved.
- ESG customization must adhere to the underlying strategy’s quality, liquidity, diversification, and other risk parameters.
- Emphasis on credit surveillance and relative value assessment.
Proprietary municipal ESG analysis enhances our fundamental credit research.
- Sector-specific approach draws upon up to 7 distinct environmental factors, 21 social factors, and 19 governance factors.
- ESG ratings are derived from the specific factors within each ESG category that are seen as most relevant to a particular bond issuer.
- Each factor is rated on a 1 to 5 scale and equal weighted.
- Issuer ESG scores may influence, but are distinct from, our proprietary credit ratings.
- ESG analysis supports risk identification and relative value comparisons.
Appleton’s ESG Score is based on a set of predetermined ESG factors identified and determined by Appleton. These factors are not all-inclusive and are subject to Appleton’s discretion. Consequently, scores are representative of Appleton’s research, due diligence and judgement and should not be construed as being endorsed by any regulatory authority or ESG-based organization. A list of applicable factors is available upon request. Appleton assigns only one ESG Score for each municipal bond issuer based upon the criteria that Appleton believes is most relevant to the issuer. These scores are not influenced by client inquiries or requests.
Evaluating environmental, social and governance factors has long been incorporated into our fundamental research approach. Our proprietary municipal ESG scoring now gives us a disciplined, quantifiable means of doing so. We believe these characteristics can help identify high-quality bond issuers and avoid undue risks.
Nathan W. Harris, CFA
Senior Vice President / Director, Municipal Research