Investment Research Process
All products in our suite of Next EconomyTM investment portfolios have two things in common. Each is designed to give clients an innovative option in how they would like to engage in green equity investing, and each employs a careful, rigorous research process.
On a macro-economic level, we take the unusual approach of using climate science and other data intensive inputs such as demography, ecological science, physical science and policy as the framework for our theory of how to structure a Next Economy able to function in a warming, resource constrained Earth. The inputs from these various sources are used to identify sectors, industries and specializations that will have to grow rapidly to mitigate civilization's most significant issues.
At the company level, we employ a sophisticated approach to fundamental investment research, including proprietary valuation methods that embed environmental performance into traditional financial analysis. Our investment process is calibrated to ensure portfolio companies exhibit sound financial management, have business models that address one or more of the economic-environmental challenges facing civilization and are optimized for eco-efficiency of continuing operations. Each company is assessed on the basis of financial, business and environmental vectors of performance. Companies selected through this process comprise the green economy. Whereas this cross-cap universe is sufficiently populous to provide for comprehensive differentiation across various sets of risk factors, it is materially different from conventional broad market proxies. This universe of issuers serves as the foundation for development of active portfolios and passive indices. Our investment products are independently engineered through a combination of risk management techniques and optimization algorithms to obtain maximum return for a given level of investor risk tolerance.
On a macro-economic level, we take the unusual approach of using climate science and other data intensive inputs such as demography, ecological science, physical science and policy as the framework for our theory of how to structure a Next Economy able to function in a warming, resource constrained Earth. The inputs from these various sources are used to identify sectors, industries and specializations that will have to grow rapidly to mitigate civilization's most significant issues.
At the company level, we employ a sophisticated approach to fundamental investment research, including proprietary valuation methods that embed environmental performance into traditional financial analysis. Our investment process is calibrated to ensure portfolio companies exhibit sound financial management, have business models that address one or more of the economic-environmental challenges facing civilization and are optimized for eco-efficiency of continuing operations. Each company is assessed on the basis of financial, business and environmental vectors of performance. Companies selected through this process comprise the green economy. Whereas this cross-cap universe is sufficiently populous to provide for comprehensive differentiation across various sets of risk factors, it is materially different from conventional broad market proxies. This universe of issuers serves as the foundation for development of active portfolios and passive indices. Our investment products are independently engineered through a combination of risk management techniques and optimization algorithms to obtain maximum return for a given level of investor risk tolerance.
Photos by Garvin Jabusch, Galapagos Islands
