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Wells Fargo & Co. has launched its new Wells Fargo Advantage Social Sustainability FundSM.
The Fund will employ a two-pronged approach to its investment strategy:
- the fund's managers will use an inclusive screening process to invest in companies that have positive traits related to environmental, social, and governance (ESG) factors,
- in addition it will avoid stocks-such as alcohol, tobacco, gambling, or weapons manufacturing companies-based on traditional socially responsible investing (SRI) screens.
The Social Sustainability Fund will invest in approximately 30 to 50 large cap companies. The management team's process begins by establishing fundamental valuations for strong businesses and then identifies those companies whose stock prices are at a discount to that level.
Lastly, on completing the fundamental investment analysis, the team then applies SRI screens to complete the portfolio construction.
"More and more, investors are looking for options that allow them to put their money to work in a manner consistent with their values," says Andrew Owen, executive vice president of Wells Fargo Funds Management, LLC. "With our Social Sustainability Fund, clients are now able to access veteran institutional managers who are recognized experts in the SRI category."
The Fund will be subadvised by Nelson Capital Management, an investment management firm based in Palo Alto, CA, that has specialized capabilities in socially responsible investing.
