Granahan Investment Management Future Pathways Strategy Marks Three-Year Anniversary; Outperforms Russell 2500 Growth Index, 95% of Peers in eVestment Universe

WALTHAM, Mass., Sept. 21, 2023 /PRNewswire/ -- Granahan Investment Management, Inc., an employee-owned SEC-registered small- and mid-cap equity specialist, recently marked the three-year anniversary of its Future Pathways strategy, which has outperformed its benchmark and peers. The Future Pathways portfolio seeks to invest in companies whose products and services meet sustainability goals from health care to energy transition.

Launched on Aug. 31, 2020, Future Pathways gained 14.01% net of fees on an annualized basis through Aug. 31, 2023, compared with 2.86% for the Russell 2500 Growth Index. Over the same period, the strategy ranks in the top 5% in its peer eVestment U.S. small-midcap growth universe of 42 funds. eVestment, part of Nasdaq, provides institutional investment data, analytics and market intelligence covering public and private markets.

David Rose, CFA, who also serves as Granahan's chief investment officer, has managed the strategy since inception. Future Pathways is a diversified portfolio of approximately 50 small- and midcap companies that are mapped to the United Nations Sustainable Development Goals (UN SDGs) and six specific areas of focus: clean energy, energy efficiency, health care outcome and cost, pollution reduction, social justice and opportunity, and water and food. At the end of the second quarter, Future Pathways was overweight industrials and information technology and underweight the Russell 2500 Growth benchmark in all other sectors. The portfolio currently has no exposure to utilities, communication services, financials, real estate, or materials.

"Sustainability remains the most important factor driving the 21st century global economy, and Future Pathways' mission is to seek out, assess and invest in a diversified portfolio of innovative companies that offer more efficient solutions for individuals, businesses and governments in crucial sectors from health care to energy transition," Rose said.

Future Pathways is available in the U.S. as a separately managed account and as a UCITS fund to investors in the U.K., Ireland, Asia, Netherlands, Belgium, Guernsey, Jersey, Switzerland, Denmark, Norway, Sweden and Finland. The UCITS fund was introduced in April 2023.

Waltham, Mass.-based Granahan recently published its second annual report for the Future Pathways strategy.

ABOUT GRANAHAN INVESTMENT MANAGEMENT
Granahan Investment Management, Inc., founded in 1985, is a small and mid-cap equity specialist with broad employee ownership and $3.3 billion in assets under management as of June 30, 2023. The firm offers micro cap, small cap, mid cap, and SMID strategies for institutions and high net worth individuals worldwide. In 2022 the firm was named for the second consecutive year as a "Best Places to Work in Money Management" by Pensions & Investments. For more information, visit www.granahan.com.

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SOURCE Granahan Investment Management