Global Governance Investment Process

Country Governance Investment Process

The quantitative scores from our research are accumulated into scores for each Economic Standard which then result in overall country scores. The higher the score, the greater the adherence to the Sustainable Wealth Creation principles. The country scores are converted into target weightings.

Beginning in 2003, model portfolios were built using country-level indices. Target weightings were determined and rebalanced monthly. Magni continues to run these models in addition to managing client portfolios since 2012.

Client portfolios include country-level funds, such as ETFs. If multiple country-level funds are available in a particular country, we select the one offering  low tracking error and high liquidity. In a few countries, none of the funds meet Magni requirements; therefore, those countries are not included in client portfolios. Magni periodically reviews its country-level fund selections and makes changes as appropriate.

Company Governance Investment Process

The quantitative scores from our research are accumulated into scores for each theme which result in overall company scores. Each company has a Magni Corporate Governance score, a Catholic Values score, and an Islamic Stewardship score. The higher the score, the greater the adherence to the Sustainable Value Creation principles. The company scores are converted into target weightings in the respective portfolios.

Beginning in 2015, model portfolios were built using large-cap US public companies.. All companies in the S&P 500 Index are evaluated. The Magni Catholic Values portfolio excludes companies inconsistent with Catholic Social Teachings, as codified by the United States Council of Catholic Bishops. The Magni Islamic Stewardship portfolio excludes companies that are not Shariah compliant. Target weightings are determined and rebalanced semiannually. Magni continues to run these models in addition to managing client portfolios since 2017. Client portfolios use the subset of companies with the highest corporate governance scores, with the number of companies related to the size of the portfolio.

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