Portfolio manager Bruce Kahn, Ph.D of the Shelton Sustainable Equity Fund sits down with InvestmentNews anchor Gregg Greenberg to explain how he selects innovation-focused, sustainable stocks from the bottom up.
Overview
Shelton Sustainable Equity Fund combines a macroeconomic growth thesis, shaped by scientific, demographic, and climate trends, with rigorous bottom-up company research to identify stocks believed to have above-average growth potential. The fund focuses on companies whose products or services may help improve human well-being, increase economic efficiency, and reduce environmental risk. For advisors evaluating thematic equity strategies, sustainably-focused funds, or ESG equity allocations, the fund is designed to offer a research-driven, actively managed alternative to passive sustainable investments.
Fund Objective
The Fund’s investment objective is to achieve long-term capital appreciation by investing in stocks in the sustainable economy.
Where NEXIX can fit
NEXIX is designed to serve investors and advisors seeking long-term equity exposure through an actively managed sustainability-focused strategy and for portfolios where a thematic equity allocation is intended to complement rather than replace broad-market equity exposure.
The Fund may fit in portfolios looking for:
- A targeted equity allocation tied to the sustainable economy rather than a broad ESG index.
- Long-term capital appreciation through active, research-driven stock selection.
- Exposure to companies aligned with structural economic shifts in efficiency, innovation, and environmental transition.
- An alternative to broad-market equity exposure for investors with sustainability-focused priorities.
- A mutual fund structure suitable for use in advisor-managed portfolios and retirement accounts.
How the fund works
NEXIX is managed as an actively managed sustainable equity strategy. The portfolio management team pairs a macro growth thesis based on scientific, demographic, and climate trends with bottom-up fundamental research to identify companies participating in the sustainable economy.
How NEXIX approaches sustainable equity investing
Sustainable economy lens
The Fund looks for companies whose products, services, or business models are believed to improve human well-being, increase economic efficiency, and significantly reduce environmental risk. This universe is constructed using Shelton’s proprietary PRIME framework, which evaluates companies across five dimensions: Principles, Research, Impact, Mitigation, and Evolution.
Macro plus bottom-up research
The portfolio management team combines a macroeconomic thesis with bottom-up fundamental research at the company level. The process includes direct company interviews, industry analysis, third-party database review, and valuation work, with the goal of identifying investments the team believes have above-average growth potential.
Disciplined portfolio construction
This is a process that combines fundamental research, quantitative portfolio construction, and risk management, with ongoing impact measurement and reporting as part of the strategy framework.
Why investors consider a sustainable equity mutual fund
- Actively managed exposure to companies participating in the sustainable economy rather than a passive index with an ESG screen applied.
- Long-term equity strategy focused on structural growth themes in sustainability, efficiency, and environmental transition.
- Research-driven security selection combining a macroeconomic framework with fundamental company analysis.
- Sustainability-oriented framework supported by PRIME criteria.
- Mutual fund structure suited to advisor-managed portfolios and long-term investors.
- May complement broader equity allocations with a differentiated thematic approach.
Management Team
Bruce Kahn, Ph.D.
Nicolette DiMaggio
Common Questions
Unlike a passive ESG index fund that typically applies a screen to a broad-market index based on third-party ESG ratings, the Shelton Sustainable Equity Fund starts from a sustainably-oriented investment universe defined by the team’s proprietary PRIME framework and both macroeconomic analysis and fundamental research to identify what the portfolio management team identifies as compelling opportunities. This results in a thematic strategy, rather than a screened version of a traditional benchmark index.
PRIME is Shelton’s own five-factor framework for evaluating companies in the sustainable economy. It evaluates each company across five key areas: Principles, Research, Impact, Mitigation, and Evolution. This provides the portfolio management team with a sustained and structured basis for deciding if a company’s business model truly fits the sustainable economy or only indirectly linked to it.
The management team integrates a top-down macroeconomic thesis with fundamental bottom-up research at the company level. The process includes direct company interviews, industry research, and third-party database reviews, coupled with rigorous valuation analysis. While the team selects stocks with above-average long-term growth potential among the sustainable economy universe, the fund itself is not designed to track a broad market index.
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Important Information
It is possible to lose money by investing in a fund. Past performance does not guarantee future results. Any projections or other forward looking statements regarding future events or performance of markets, companies, or otherwise are not necessarily indicative or differ from, actual events or results.
Fund information is not intended to represent future portfolio composition. Portfolio holdings are subject to change and should not be considered a recommendation to buy individual securities.
By clicking some links above, you’ll go to a third-party website. Shelton Capital Management does not control the content or privacy practices of the other websites and does not endorse or accept responsibility for the content, policies, activities, products or services offered on the site. It should not be considered investment advice. The information provided does not provide information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security.
The Fund’s environmental focus may limit investment options available to the Fund and may result in lower returns than returns of funds not subject to such investment considerations. There are no assurances that the Fund will achieve its objective and or strategy. Investing in securities of small and medium-sized companies, even indirectly, may involve greater volatility than an investment in larger and more established companies.
Investors should consider a fund’s investment objectives, risks, charges, and expenses carefully before investing. The prospectus contains this and other information about the fund. To obtain a prospectus, visit www.sheltoncap.com or call (800) 955-9988. A prospectus should be read carefully before investing. The Shelton Sustainable Equity Fund is distributed by RFS Partners, a member of FINRA and affiliate of Shelton Capital Management.
INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.
