Investment approachPella believes it is possible to consistently generate excess returns by investing in highly cash flow generative companies with favourable outlooks that are trading at attractive valuations. The Fund’s responsible investment guidelines govern the manager’s ethical and Environmental, Social and Governance (ESG) processes and engagement actions. Investment process for the FundThe Fund’s investment team reviews scores of investment opportunities as an integral part of the idea generation, company assessment and portfolio management processes. An understanding of the opportunities’ fundamentals, ESG and outlooks are developed using deep fundamental research. The investment team continually monitor all positions and prospective positions. Existing positions are exited if they no longer satisfy our investment criteria, breach risk management requirements, and/or Ethical/ESG guidelines or alternatively, if a superior candidate is identified.The process targets a portfolio that should on aggregate be growing faster and priced at a discount to the broader equity market. In addition the aggregate ESG characteristics are targeted to be superior to the Benchmark

Pella's mission is firmly rooted in the commitment to help investors prosper without compromising the well-being of current or future generations. This guiding principle is embodied in our flagship fund, the Pella Global Generations Fund. This global, long-only strategy aims not only to achieve superior returns relative to the Benchmark but also to maintain lower volatility and uphold superior Sustainability compared to the Benchmark.

The Pella Global Generations Fund invests in a diversified portfolio of highly cash-generative companies. These companies must be growing; offer attractive valuations and meet our rigorous sustainability requirements. Our investment philosophy acknowledges the intrinsic link between growth and valuation. To navigate this, Pella utilizes a proprietary valuation-growth model that determines the appropriate price to pay for a stock, based on expected growth, to achieve a target rate of return. The return is calculated as the sum of the prevailing global interest rates and a 5% risk premium.

Our investment strategy capitalizes on several key avenues: Time Arbitrage, taking advantage of prevailing short-termism; Cyclical, leveraging biases like anchoring and recency; and Innovation, benefiting from the often-underappreciated impact of disruption. We are confident that these opportunities can be captured through a disciplined process.

To ensure that our portfolio exhibits superior sustainability, Pella implements a variety of Sustainable/RI strategies. These include ESG integration, negative screening, norms-based screening, corporate engagement, and sustainability-themed investing. Moreover, Pella is committed to investing in positive impact companies, provided they meet our financial criteria. These strategies are integrated at both the stock and portfolio level throughout Pella’s investment process, with every analyst responsible for incorporating sustainability considerations into their research, and the PM/CIO ensuring that the portfolio meets its ESG requirements.

Pella’s Responsible Investing Manual offers a detailed explanation of our investment process and is available on our website