Funds Group: Karner Funds
Management Company: Karner Blue Capital
Funds Affected: Karner Blue Animal Impact Fund
Principal Sustainable Investment Strategies: Thematic investing
Summary:
The adviser seeks to invest at least 75% of the Fund’s assets in companies from industries that the adviser believes significantly impact the welfare of animals (“Primary Industries”), and up to 25% of its assets in companies from other industries (“Secondary Industries”) where the adviser believes a company has made significant contributions to animal welfare outside of its normal business operations. In between each quarterly reallocation or rebalance, general trading activity and market fluctuations may result in deviation from these thresholds.
The adviser considers a number of business activities when identifying Primary Industries, which may include, but are not limited to, the following:
(1) Manufacturing or distributing products that use animals, animal products or animal product substitutes during the production process, and how the relevant company engages in this activity in a way that the adviser believes promotes animal welfare over that company’s peers engaged in similar activity;
(2) Conducting research or scientific investigations involving animals, animal products or animal product substitutes, and how the relevant company engages in this activity in a way that the adviser believes promotes animal welfare over that company’s peers engaged in similar activity;
(3) Providing services, including, without limitation, entertainment and travel and leisure services, that have an impact on animal welfare, and how the relevant company engages in this activity in a way that the adviser believes promotes animal welfare over that company’s peers engaged in similar activity;
(4) Having business operations that are significantly linked to the sustainability of animal habitats through activities such as natural resources use and certain commodities-related activity such as mining, waste management and environmental emissions, and how the relevant company engages in this activity in a way that the adviser believes promotes animal welfare over that company’s peers engaged in similar activity; or
(5) Businesses that generally seek to improve animal welfare by developing or offering products or services that would benefit animals or improve public opinion about animals.