Shareholders First Index

The 2VA Shareholders First Index (ESGN) only invests in large and mid-cap US companies. Companies included in the investment set are screened to determine if they prioritize their duties to shareholders over political activism or social policy agendas, as evaluated by unique proprietary research developed by 2ndVote Research (2VR). Companies are screened based on their neutral rating on each of six social/political issue categories. A company must score Neutral on each issue 2VR scores which currently includes: Basic Freedoms, Life, 2nd Amendment, Civil-Safe Society, Education, and Environment. The ESGN Index then rates the remaining companies employing a unique financial model designed to identify those companies that have the financial characteristics to outperform the market in the then-current monetary regime. The proprietary financial model 2VA employs is licensed from Economic Index Associates. The resulting model index is replicable, investable, rules-based and transparent. Effectively-managed risk is a natural outgrowth of the dynamic financial model—the approach of re-evaluating stocks across regimes produces dynamic portfolios that are not stuck in static sectors, factors, styles or strategy bets that move out of favor.

The financial model is not political in nature – the ESGN index includes the stocks that our financial methodology indicates will be the best performing of those that prioritize their duties to shareholders over political activism or social policy agendas. 100% of ESGN portfolio companies score Neutral on 2VR’s six social/political issue categories. 1

This results in profit-oriented, business-focused companies for the ESGN Index—with the highest modeled return expectations.

 

1Rebalancing is done on at least a quarterly basis based on changes to the universe of ESGN eligible securities and the financial metrics employed by EIA. Changes to the index may take up to 60 days to implement.

Dashboard

ESGN_Dashboard_Sept9.30.2022
Summary Dashboard Document

Composition and Weights

ESGN-Composition-and-Weights-09_30_22.pptx
Download Components Document

Fact Sheet

Shareholders-First-Index-RETAIL-09-30-2022.pptx
Download Fact Sheet

Performance

Shareholders-First-Performance-Chart-as-of-09_12_22.pptx
Download Performance

Disclaimer

This document is provided for information purposes only and is intended for use by institutional and professional investors. The information presented herein prior to the index launch date of June 17, 2021 is based on the same methodology in effect when the index was officially launched. For prior periods, the information and data presented regarding the index assumes that the same evaluation of companies existed in all prior periods as it did on the index launch date and, among other things, does not take into account current business, market or financial conditions. 2VA receives compensation in connection with licensing its indices to clients and for providing custom advisory services. The performance results presented do not reflect the deduction of 2VA’s management fees or other customary expenses that may be incurred in the management of a client’s account. The performance results are not GIPS compliant. Past performance is not an indication or guarantee of future results. 2VA makes no representation or warranty, express or implied as to the ability of the index to accurately represent any asset class or market sector that it purports to represent. This document does not constitute an offer of any services or product. All information provided by 2VA is general in nature and not tailored to the needs of any person, entity or third-party. It is not possible to invest directly in an index. 2VA is an investment adviser registered with the Securities and Exchange Commission. Registration does not indicate any level of skill or training. For more information on any of our services please visit www.2ndvotefunds.com. This document is confidential. Redistribution or reproduction in whole or in part of this document is prohibited.