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.
Photos by Garvin Jabusch, Galapagos Islands
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