Scarab Global All Cap Strategy
This strategy was developed over the last 5 years beginning with a painstaking process of financial and positive impact criteria. The initial universe included 200 of approximately 1000 companies vetted. Until April 2012 the stocks acquired were separated into 3 Value indices: one small-cap global universe, one large cap international and one large cap domestic. The Global All-Cap Strategy combined these three universes into one. With the help of Laurie Burstein, consultant, formerly a top performing money manager at Roxbury Capital, in-depth financial and management analysis is now being done to discover future growth potential as a precondition for stocks to remain. This is an evolution firstly from pure “value investing” to an approach which favors growth at a reasonable price (or GARP) and secondly from a passive index-like approach to a highly managed “stock-picking” approach. The process of culling the Strategy from almost 200 positions down to 125 began last year before combining in April and the intention is to reduce the number of positions to 50 by the end of 2012. The Strategy invests in global public companies across all market capitalizations that demonstrate leadership in social and environmental responsibility. The stock-picking is supported by in-depth research, screened for growth at a reasonable price (GARP) and includes:
• Innovators creating new business models that address social & environmental problems
• Companies making meaningful commitments to social responsibility with tangible results
• Companies with products and services that have a high positive social or environmental impact
• Domestic, international and emerging market exposure
Scarab Global Community Impact Strategy
This strategy invests in organizations and businesses that directly contribute to community development in the U.S. and around the world.
• Organizations selected for innovation and leadership in their fields, and for strong balance sheets
• Diversification in social impact and organizational scope
• Potential Impact areas: Education, Fair Trade, Sustainable Agriculture, Microfinance, Green Affordable Housing, Supportive Housing and Small Business Development
Scarab Enhanced Cash Strategy
This strategy is positioned as an alternative to money market funds. The Strategy’s sustainability focus is on investments that promote environmental protection and enhancement, and that work to alleviate poverty and develop community. The current focus is on poverty alleviation through micro-finance lending. In the future, investments may be made in other short-term debt securities offered by governments and social enterprises. Short duration loans may be made for community development and/or poverty alleviation or for environmentally friendly technology. Investments may be made in social impact bonds, community development banks, credit unions and similar organizations; and, further, in infrastructure bonds for specific projects pertaining to development of infrastructure such as roads, sewerage, hospitals, and affordable housing bonds.
Scarab Green Real Asset Strategy
This strategy invests in sustainable forestry and timber in addition to a variety of green real estate funds that in turn invest in green commercial and multi‐use real estate holdings and/or development projects. The Strategy may also invest in direct “green” real estate projects. In selecting investments for this portfolio, the primary benchmark for “green real estate” will be whether the real estate meets the standards of performance (energy efficiency, durability, low maintenance, healthy environment, and other benefits of rigorous green design and construction) achieved or demonstrated by the US Green Building Council’s LEED Certification program. Timber and forestry investments will also depend on whether the investments meet independent standards for sustainable practices.