Finally, securities are selected in a fundamental manner. Companies are also evaluated with respect to their records of corporate responsibility with the goal of eliminating those whose corporate behavior could negatively impact performance. Portfolio holdings are monitored on a daily basis with particular attention paid to current versus target price. When a stock reaches the target price it is either sold or the fundamentals are revisited to determine if a higher price target is warranted. Companies are also sold if they fail an annual corporate responsibility review.
Risk management is an important component of the investment process.
By focusing on large, well-established companies in developed markets, the risks inherent in global investing are somewhat mitigated. Lastly, social screening helps reduce risk by helping to eliminate problematic companies. Investments in the Citizens Global Equity Fund involve risks of investing in foreign markets, including political instability and currency risks, excessive taxation, different financial and auditing standards, increased market volatility and other factors. The Financial Times World Index is an unmanaged index of common stocks of domestic and foreign companies. Direct investment cannot be made in this index.