The Fund applies a Negative Screen that excludes issuers whose primary business activities (defined as gross business revenue exceeding 10%) involve armaments, uranium, gambling, tobacco distribution, pornography, alcohol production and the exploration, production, distribution, and services for fossil fuels. The Fund does not invest in companies that derive any revenue from the production or manufacturing of tobacco, nicotine alternatives and tobacco-based products, controversial and nuclear weapons. Companies may also be excluded from the investment universe if, in the opinion of the Sustainability Advisory Committee, they are materially involved in certain practices, such as causing or perpetuating injustice and suffering, infringing human rights and supporting oppressive regimes.

The Fund applies a second ethical overlay that considers factors such as the environmental effects of the issuer, social consequences of their business and quality of Governance. ESG integration is an approach which considers all material factors in investment analysis and investment decisions, including environmental, social and governance factors. The systematic integration of ESG risk assessment into the Manager's proprietary credit research process aims to make informed investment decisions with knowledge of key ESG risks. 

Altius considers the relevance and materiality of environmental, social, and governance issues, which are then factored into its credit assessment. Environmental issues include climate change, energy resources and management, pollution, bio-capacity and ecosystem quality, and renewable and non-renewable resources. Social issues include human rights, employee relations, stakeholder relations, product responsibility, health and safety, and diversity. Governance issues include business integrity, board expertise and independence, transparency and accountability, audit practices, incentive structure, and fiduciary duty.

To complement its ESG integration approach, Altius will engage with issuers if appropriate. It views ESG engagement as a process of dialogue with issuers which occurs naturally as part of the investor and issuer interaction. When discussing ESG issues with issuers the Manager focuses on encouraging issuers to enhance disclosure on ESG practices, discussing thematic ESG issues that are relevant to their business, and engaging issuers to gain information on ESG practices and understand how they mitigate ESG risks.