Strategies
Advantage Capital Strategies offers both broad public market and concentrated stock selection strategies. All of our funds use sustainable investing as a core input to decision making and seek to generate market returns or better. We can also manage Separately Managed Accounts based on our strategies.
ACS Responsible Beta™ Funds
Broad public equity strategies with harmful industry and controversial company exclusions
Excludes fossil fuels, gambling, weapons, alcohol, and tobacco industries, so will outperform when these industries underperform
Fossil Fuels
Gambling
Weapons
Alcohol and Tobacco
ACS Responsible Beta™ Canadian Equity Fund
Canadian geography
$CA fund units
Management fee of 45 bps
Available to accredited investors
Best as part of core equity allocation
ACS Responsible Beta™ US Equity Fund
US geography
$CA or $US fund units
Management fee of 45 bps
Available to accredited investors
Best as part of core equity allocation
The ACS Responsible Beta Funds are a sustainable alternative to index funds. They aim to replicate or improve on the return and risk characteristics of an equity market index. This is accomplished by avoiding companies that offer harmful products or services and companies that have engaged in controversial business practices.
Industries screened out include oil and gas (downstream, midstream, and upstream), thermal coal, natural gas, tobacco, weapons, gambling, alcohol and cannabis.
Controversial business practices screened out include severe impact on biodiversity, indigenous rights, business fraud and supply chain forced labour.
Our in-house research process identifies harmful industries, and then examines each individual company to measure the amount of revenue generated from these industries. If a certain threshold is exceeded, this company is excluded from the funds. All other index constituents are held in the fund at a proportional weight. We make it a priority to stay in front of emerging sustainability issues and will screen out industries and sub-industries before other fund managers.
We believe that as these industries shrink, lose share to sustainable alternatives, or face lower profits due to pricing in of externalities, they will underperform our remaining non-harmful holdings.
ACS Sustainable Future Fund
Concentrated public equity strategy using fundamental company analysis to invest in sustainable themes:
Energy Transition
Sustainable Cities
Health and Wellbeing
ACS Sustainable Future Fund
Global developed geography
$CA fund units
Management fee of 75 bps
Available to accredited investors
Best as part of active/alpha generating equity allocation
The ACS Sustainable Future Fund is a concentrated active strategy that aims to generate long term capital appreciation by investing in three sustainable themes: Energy Transition, Sustainable Cities, and Health and Wellbeing. These themes are based on well-established secular trends which should persist over multiple decades.
We believe that businesses supporting these themes will generate above market returns, and seek to invest in the ones with the best return potential by using an in-depth fundamental research process.
Our focus is on high quality companies with a strong track record of free cash flow generation, clean balance sheets, and above market growth prospects. We also use a rigorous risk management process to avoid investing in companies with high business or ESG risks.