AIG ESG Dividend Fund

Class A: EDFAX • Class C: EDFCX • Class W: EDFWX

Socially Conscious Investing that Delivers Total Return Potential

How can you invest for capital appreciation potential, help manage your investment risk and positively impact the world? One possible solution is through Environmental, Social and Governance (“ESG”) investing. Studies show that certain companies adopting ESG strategies to address their industries’ material ESG issues, such as reduced carbon emissions or fair labor practices, have delivered greater productivity and stock appreciation with lower business risk.1,2

The new AIG ESG Dividend Fund uses ESG practices and a rules-based investment process to seek capital appreciation and current income with a positive social impact.

Why Consider ESG Investing

  • Make a positive social impact without sacrificing potential investment returns. Research has shown that certain companies employing material ESG strategies tend to operate with greater efficiency, lower risk and higher profit margins, helping them deliver the potential for growth over time.3
  • Participate in one of the fastest growing investment categories from 2014-2016. The popularity of ESG investing in the U.S. has grown significantly. From 2014-2016, professionally managed assets under management incorporating ESG criteria increased by 69% to $8.1 trillion.4
  • ESG-friendly companies historically outperformed their traditional counterparts. As the chart below illustrates, ESG stocks as represented by the MSCI KLD 400 Index Social Index have outpaced the S&P 500 Index from inception through 2016.5

Note: Past performance is not a guarantee of future results. The information and chart above do not reflect the performance of the AIG ESG Dividend Fund.

This chart assumes that any cash distributions, such as dividends, are reinvested. Returns do not take into account any taxes or fees. Source: MSCI, Standard & Poors. The MSCI KLD 400 Social Index is a capitalization weighted index of 400 US securities that provides exposure to companies with outstanding Environmental, Social and Governance ratings and excludes companies whose products have negative social or environmental impacts. The S&P 500 Index is an unmanaged, broad-based, market-cap weighted index of 500 U.S. stocks. Indexes are not managed. Individuals cannot invest directly in an index. The launch date of the MSCI KLD 400 Social Index was May 1, 1990. Alpha is a risk-adjusted measure of performance and is measured as the excess return of the MSCI KLD 400 Social Index over the S&P 500 Index.


INVEST RESPONSIBLY WHILE SEEKING TOTAL RETURN POTENTIAL

Talk to your financial advisor today to learn more about the new AIG ESG Dividend Fund.


1Business risk is the risk inherent in the firm’s operations. Risk can come from numerous factors, including violations of regulations and laws pertaining to environmental, social and governance issues. 2,3Kotsantonis, Sakis and Pinney, Chris and Serafeim, George, ESG Integration in Investment Management: Myths and Realities, Journal of Applied Corporate Finance, Vol. 28, Issue 2, pp. 10-16, 2016. 4US SIF Foundation. Based on growth of money manager assets under management incorporating ESG criteria from $4.8 trillion (2014) to $8.1 trillion (2016). 5MSCI, Standard & Poor’s.

Past performance does not guarantee future results.

Investments in stocks involve risk, including the possible loss of principal. Dividend income is not guaranteed and may vary depending on market performance, and may be taxed as either ordinary income or capital gains. Dividend yield is one component of performance and should not be the only consideration for investment. Investment results will vary.

The performance of the Fund may be subject to greater fluctuation since its strategy involves holding a limited number of securities. This type of strategy may increase the Fund’s risk since the performance of a particular stock may have a larger impact, positively or negatively, on the Fund’s performance.

ESG screening limits the availability of investment opportunities for the Fund. If the Fund changes its ESG standards or a company stops meeting the Fund’s ESG standards, the Fund may sell the affected investments even if this means the Fund loses money.

The Fund employs a Disciplined Strategy and will not deviate from its strategy (except to the extent necessary to comply with federal tax laws or other applicable laws). If the Fund is committed to a strategy that is unsuccessful, the Fund will not meet its investment goal. Because the Fund will not use certain techniques available to other mutual funds to reduce stock market exposure, the Fund may be more susceptible to general market declines than other mutual funds.