Boston Common was founded in 2002 by Geeta B. Aiyer, CFA, who remains
the largest employee shareholder. Boston Common is registered with the
United States Securities and Exchange Commission as an investment adviser
that provides discretionary investment management services in the areas of
equity and balanced accounts to a variety of clients. Clients include charitable
organizations, pension and profit-sharing plans, state entities, taxable and tax-
exempt institutional clients, high net worth individuals, commingled
investment vehicles and mutual funds. All client portfolios are constructed
with the aim of being consistent with the client’s objectives and risk
tolerances. Boston Common also provides investment advisory services
through wrap accounts sponsored by other investment advisers or broker-
dealers, and in the form of an ESG model portfolio that third-party,
unaffiliated advisers license, and may use to make investment decisions on
their clients’ behalf.
Boston Common integrates Environmental, Social and Governance (“ESG”)
criteria into its investment process (as described below). Over the years,
Boston Common has developed an extensive global network of contacts,
including non-governmental organizations, regional social investment
organizations, corporate social responsibility practitioners, social justice
organizations and industry associations, which assist the firm in obtaining
primary information on corporate activities in a wide range of locations. The
firm also uses third-party ESG research providers in its stock selection
process and may rely on this research in determining whether a particular
company is in accordance with its clients’ or firms’ ESG guidelines. Through
company dialogue and the shareholder resolution process, Boston Common
voices shareowner concerns to management of select portfolio companies as
part of the firm’s efforts to encourage them towards greater transparency,
accountability, and commitment to ESG issues. Clients with portfolios containing
assets greater than certain thresholds established by Boston Common may
customize the specific ESG guidelines that are applied to their portfolios.
A. Boston Common Separate Accounts
Boston Common directly manages separate accounts in five broad
investment strategies: Large Cap International Equities, Large Cap
U.S. Equities, Global Impact, Emerging Markets, and Balanced
Accounts. Clients’ investment objectives, restrictions, and guidelines
are considered, along with their respective risk profiles. Traditional
investment research by both in-house staff and outside resources
informs the portfolio management process. The firm seeks companies
with strong ESG attributions from both a product and process
perspective, that meet our comprehensive ESG guidelines (required
for inclusion in the investable universe), and where we determine we
can create a positive ESG momentum through active engagement in
Form ADV Part 2A: Investment Adviser Brochure Page 5
order to generate alpha. Boston Common assists clients’ social
missions through integrating sustainability research into the stock
selection process, as well as through shareowner engagement, each
driven by an in-house ESG research process. Further discussion can
be found in Item 8: Methods of Analysis, Investment Strategies and
Risk of Loss.
B. Registered Investment Companies – Mutual Funds
Boston Common ESG Impact International Fund
Boston Common manages an international mutual fund, the Boston
Common ESG Impact International Fund, which is available in an
institutional share class and listed under ticker symbol BCAIX
(“BCAIX”). BCAIX is one of a series of a master business trust named
Professionally Managed Portfolios (the “Trust”). The Trust is a
Massachusetts business trust registered with the U.S. Securities and
Exchange Commission as an open-end investment company and is
administered by U.S. Bank Global Fund Services. The Trust engaged
Boston Common to manage the Fund.
BCAIX primarily invests in stocks domiciled and traded in countries
represented in the Morgan Stanley Capital International Europe,
Australasia, and Far East (MSCI EAFE) Index. BCAIX generally
invests at least 80% of its net assets, including borrowings for
investment purposes, in equity securities of non-U.S. companies that
meet the firm’s ESG criteria. Equity securities include common and
preferred stocks, as well as securities that are convertible into common
stocks. Equity securities also include American Depositary Receipts
(“ADRs”), European Depositary Receipts and Global Depositary
Receipts. Up to 10% of BCAIX’s total assets may be invested in
securities of companies located in emerging markets. BCAIX
typically invests in stocks with a market capitalization of $2 billion
USD or more. Foreside Distributors, LLC d/b/a Quasar (“Quasar”), a
broker-dealer registered with the Financial Industry Regulatory
Authority (“FINRA”) under the Securities and Exchange Act of 1934,
distributes BCAIX. Boston Common compensates Quasar for its
services as a distributor.
Boston Common ESG Impact U.S. Equity Fund
Form ADV Part 2A: Investment Adviser Brochure Page 6
Boston Common manages a U.S. equity mutual fund, the Boston
Common ESG Impact U.S. Equity Fund, which is available in an
institutional share class and listed under ticker symbol BCAMX
(“BCAMX”). BCAMX is one of a series of a master business trust
named Professionally Managed Portfolios (the “Trust”). The Trust is
a Massachusetts business trust registered with the U.S. Securities and
Exchange Commission as an open-end investment company and is
administered by U.S. Bank Global Fund Services. The Trust engaged
Boston Common to manage the Fund.
BCAMX primarily invests in stocks domiciled and traded in countries
represented in the S&P 500® Index. BCAMX generally invests at least
80% of its net assets, including borrowings for investment purposes,
in equity securities of U.S. companies that meet the firm’s ESG
criteria. Equity securities include common and preferred stocks, as
well as securities that are convertible into common stocks. BCAMX
may also invest up to 20% of its total assets in American Depositary
Receipts (“ADRs”). BCAMX typically invests in stocks with a market
capitalization of $2 billion USD or more. Foreside Distributors, LLC
d/b/a Quasar (“Quasar”), a broker-dealer registered with FINRA
under the Securities and Exchange Act of 1934, distributes BCAMX.
Boston Common compensates Quasar for its services as a distributor.
Boston Common ESG Impact Emerging Markets Fund
Boston Common manages an Emerging Markets mutual fund, the
Boston Common ESG Impact Emerging Markets Fund, which is
available in an institutional share class and listed under ticker symbol
BCEMX (“BCEMX”). BCEMX is one of a series of a master business
trust named Professionally Managed Portfolios (the “Trust”). The
Trust is a Massachusetts business trust registered with the U.S.
Securities and Exchange Commission as an open-end investment
company and is administered by U.S. Bank Global Fund Services. The
Trust engaged Boston Common to manage the Fund.
BCEMX primarily invests in stocks domiciled and traded in countries
represented in the Morgan Stanley Capital Emerging Markets (MSCI
EM) Index. BCEMX generally invests at least 80% of its net assets,
including borrowings for investment purposes, in equity securities of
Emerging Markets companies that meet the firm’s ESG criteria.
Equity securities include common and preferred stocks, as well as
securities that are convertible into common stocks. Equity securities
also include American Depositary Receipts (“ADRs”), European
Depositary Receipts and Global Depositary Receipts. BCEMX
typically invests in stocks with a market capitalization of $2 billion
USD or more. Foreside Distributors, LLC d/b/a Quasar (“Quasar”), a
broker-dealer registered with the Financial Industry Regulatory
Form ADV Part 2A: Investment Adviser Brochure Page 7
Authority (“FINRA”) under the Securities and Exchange Act of 1934,
distributes BCEMX. Boston Common compensates Quasar for its
services as a distributor.
C. Private Commingled Vehicles
In addition to the publicly-offered mutual funds described above,
Boston Common offers sustainable equity management through
private commingled vehicles which are only open to accredited
investors. This means that the investor/purchaser must meet certain
financial criteria to be eligible to purchase an interest in a private
vehicle.
Boston Common International Equity Strategy
Boston Common manages an international equity strategy that seeks
to invest in a diversified portfolio of stocks of high quality, non-U.S.
companies that are selected with regard for both financial criteria and
Boston Common’s comprehensive social guidelines. The
International Equity Strategy typically invests in stocks with equity
capitalizations (including all classes) greater than $2 billion USD. The
International Equity Strategy primarily invests in stocks domiciled
and traded in countries represented in the Morgan Stanley Capital
International Europe, Australasia, and Far East (MSCI EAFE) Index.
1
The International Social Strategy may also invest in stocks domiciled
and traded in countries not represented in the MSCI EAFE Index.
However, investments in emerging markets may not exceed 10% of
the overall portfolio.
Boston Common considers ESG factors at every stage of its
investment process in the International Equity Strategy. Through
rigorous analysis of financial and ESG factors, Boston Common
seeks to identify innovative, attractively valued companies for
investment.
The International Equity commingled fund is open solely to
accredited investors.
1 The MSCI EAFE (Net) Index is a free-float adjusted market capitalization index that is
designed to measure developed market equity performance in approximately 21 countries,
excluding the U.S. and Canada.
Form ADV Part 2A: Investment Adviser Brochure Page 8
Boston Common Catholic implementation of its International
Strategy
Boston Common manages a Catholic implementation
of its
international strategy that seeks to invest in a diversified portfolio of
stocks of high quality, non-U.S. companies that are selected with
regard for both financial criteria and Boston Common’s
comprehensive social guidelines as well as restrictions generally
based on the U.S. Conference of Bishops’ guidelines. The Catholic
implementation of the International strategy generally invests in
stocks with equity capitalization (including all classes) greater than
$2 billion USD. The Catholic implementation of the International
strategy primarily invests in stocks domiciled and traded in countries
represented in the Morgan Stanley Capital International Europe,
Australasia, and Far East (MSCI EAFE) Index. The Catholic
implementation of the International strategy may also invest in stocks
domiciled and traded in countries not represented in the MSCI EAFE
Index, however, investments in emerging markets may not exceed
10% of the overall portfolio.
Boston Common considers ESG factors at every stage of its
investment process in the Catholic implementation of the
International strategy. Through rigorous analysis of financial and
ESG factors, Boston Common seeks to identify innovative,
attractively valued companies for investment.
The Catholic implementation of the International strategy
commingled fund is open solely to accredited investors.
Boston Common International Sustainable Climate Strategy
Boston Common manages an international sustainable climate
strategy that seeks to achieve long-term capital appreciation by
investing in a diversified portfolio of non-U.S. stocks of high-quality
companies, selected with regard for financial criteria, sound
governance and a history of responsible, consistent financial
management. The International Sustainable Climate strategy seeks
to avoid investing in companies engaged in the production,
extraction, exploration, manufacturing or refining of fossil fuels.
Boston Common considers ESG factors at every stage of its
investment process in the International Sustainable Climate Strategy.
Through rigorous analysis of financial and ESG factors, Boston
Form ADV Part 2A: Investment Adviser Brochure Page 9
Common seeks to identify innovative, attractively valued
companies for investment.
The All Country International Climate Strategy primarily invests in
stocks domiciled and traded in countries represented in the Morgan
Stanley Capital International All Country World x-U.S.A. (MSCI
ACWI x-U.S.A.) Index
2.
The International Sustainable Climate commingled fund is open
solely to accredited investors.
Boston Common Sustainable Emerging Markets Strategy
Boston Common manages a sustainable emerging markets strategy
that seeks to achieve long-term capital appreciation by investing in a
diversified portfolio of non-U.S. stocks of high-quality companies
that are selected with regard for both financial and sustainability
criteria. The Sustainable Emerging Markets strategy’s country
allocation is based on the Morgan Stanley Capital International
(MSCI) Emerging Markets Index
3.
Boston Common considers ESG factors at every stage of its
investment process in the Sustainable Emerging Markets strategy.
Through rigorous analysis of financial and ESG factors, Boston
Common seeks to identify innovative, attractively valued
companies for investment.
The Sustainable Emerging Markets commingled fund is open solely
to accredited investors.
Boston Common Global Impact Strategy
Boston Common manages a Global Impact strategy that seeks to
invest in a diversified portfolio of global stocks of high-quality
2 The Morgan Stanley Capital International All Country World x U.S.A Index is a free-float
adjusted, market capitalization-weighted index of the largest publicly traded companies
listed on the exchanges of developed and emerging market countries around the world,
excluding U.S.-based companies.
3 The MSCI Emerging Markets Index (“EM Index”) is a free float-adjusted market
capitalization weighted index that is designed to measure equity market performance in the
global emerging markets. The EM Index covers many emerging market country indices.
Designation as an emerging market is determined by a number of factors. MSCI evaluates
factors such as gross national income per capita; market depth and liquidity; local
government regulations; perceived investment risk; foreign ownership limits and capital
controls; and the general perception by the investment community when determining an
"emerging" classification of a market.
Form ADV Part 2A: Investment Adviser Brochure Page 10
companies that are selected with regard for both financial and
sustainability criteria. The Global Impact strategy generally invests
in stocks with equity capitalization (including all classes) greater than
$2 billion USD. The Global Impact strategy primarily invests in
stocks domiciled and traded in countries represented in the Morgan
Stanley Capital All Country World (“MSCI ACWI”)
4 Index.
Boston Common considers ESG factors at every stage of its
investment process in the Global Impact Strategy. Through rigorous
analysis of financial and ESG factors, Boston Common seeks to
identify innovative, attractively valued companies for investment.
The Global Impact commingled fund is open solely to accredited
investors.
Boston Common Catholic implementation of Emerging Markets
Strategy
Boston Common manages a Catholic implementation of its
sustainable emerging markets strategy that seeks to achieve long-
term capital appreciation by investing in a diversified portfolio of
non-U.S. stocks of high-quality companies that are selected with
regard for both financial criteria and Boston Common’s
comprehensive social guidelines as well as restrictions generally
based on the U.S. Conference of Bishops’ guidelines. The Catholic
implementation of the Emerging Markets strategy’s country
allocation is based on the Morgan Stanley Capital International
(MSCI) Emerging Markets Index
5.
Boston Common considers ESG factors at every stage of its
investment process in the Catholic implementation of the Emerging
Markets strategy. Through rigorous analysis of financial and ESG
4 The MSCI ACWI Index is a global equity index consisting of developed and emerging
market countries.
5 The MSCI Emerging Markets Index (“EM Index”) is a free float-adjusted market
capitalization weighted index that is designed to measure equity market performance in the
global emerging markets. The EM Index covers many emerging market country indices.
Designation as an emerging market is determined by a number of factors. MSCI evaluates
factors such as gross national income per capita; market depth and liquidity; local
government regulations; perceived investment risk; foreign ownership limits and capital
controls; and the general perception by the investment community when determining an
"emerging" classification of a market.
Form ADV Part 2A: Investment Adviser Brochure Page 11
factors, Boston Common seeks to identify innovative, attractively
valued companies for investment.
The Catholic Emerging Markets commingled fund is open solely to
accredited investors.
Boston Common’s Chief Compliance Officer reviews the compliance
controls and policies of its sub-adviser, including but not limited to its
practices regarding side-by-side management of accounts, trade allocation,
soft dollar brokerage allocation, best execution, and managing conflicts of
interest.
D. Other
Sponsored Advisory Accounts
Boston Common offers investment advisory services on a
discretionary basis to clients of sponsoring broker-dealers or
financial consultants who offer comprehensive brokerage,
custodial and advisory services for a comprehensive “wrap
fee,” which is typically based on the amount of client assets
under management. The sponsors of these wrap programs
remit a portion of the fees to Boston Common. Boston
Common’s fees for providing investment advisory services to
the sponsored accounts range from 0.7% to 1.0% of the assets
that have been allocated to it for management. This range is
determined between Boston Common and the sponsoring
broker-dealer or financial consultant.
In these arrangements, Boston Common makes decisions
regarding what securities should be bought and sold for the
wrap client’s account; the wrap sponsor selects the brokers that
will effectuate the transactions. Boston Common is required to
direct all brokerage transactions to the sponsoring broker-
dealer. Execution prices are often less favorable than
execution prices achieved in non-wrap accounts. Generally,
Boston Common may terminate its participation in a wrap
program upon thirty days’ notice. Please refer to Item 12 for a
more complete discussion of the effects of Directed
Brokerage.
Model Manager – Third Party Platforms
Boston Common’s services are also offered on third-party
Unified Managed Account (“UMA”) platforms managed by
other investment advisers. In these cases, Boston Common
does not make any investment decisions on behalf of these
Form ADV Part 2A: Investment Adviser Brochure Page 12
accounts, but provides a Model Portfolio that the client’s
manager may use to invest client accounts. Boston Common
refers to these advised accounts as “Licensed Model Portfolio
Assets.”
Firm Ownership
Boston Common is majority owned by 23 of its employees and Geeta Aiyer,
the firm’s Founder, President and largest employee shareowner (15%). A
minority stake of 15% is owned by an outside private entity: BC Acquisition
LLC.
Assets under Management
As of December 31, 2023, Boston Common managed approximately $4.7
billion in assets, including sub-advised assets. In addition, it advised, on a
non-discretionary basis, approximately $359 million in Licensed Model
Portfolio Assets.