Impact investing goes beyond negative screening to emphasize companies that are actively making positive change in the world.
Our portfolios seek attractive risk-adjusted returns as well as an impact on people and the planet. Rather than devoting siloed portions of the portfolio to the return objective and the impact objective, we integrate our approach.
Our Fossil Free High Impact Equity Fund is a focused, thematic pooled fund that invests in shares of global companies building the sustainable future. Clients typically own 20% of their equity exposure in the Impact Fund to strike the balance between impact and diversification. The fund integrates broad Environmental, Social and Governance (ESG) criteria, and excludes all issuers directly involved in fossil fuels.
Going further, the fund strives to outperform global stock markets while owning companies that improve communities and climate. From a list of 150 leaders in renewable energy, energy efficiency, water and waste management, access to education, healthcare, financial services, technology, and sustainable agriculture we select 20 to 40 stocks that also appear attractive based on quality, value, momentum and other investment criteria.
Representative examples have included:
Genus measures the Net Impact Score for all client portfolios.
A common problem for many impact investors is that they focus solely on the positive outcomes of their investments. The whole story of that investment is not being told, and consequently the investor’s intentions may not be reflected in their investment’s results.
Instead of focusing only on positive impact investing or – conversely – screening solely for negative impact, the Net Impact Score provides a holistic view that helps the investor account for the destructive nature and the beneficial nature of their investments in one metric.
By applying Net Impact Scoring to a portfolio, an impact investor who invests in renewable energy in one part of their portfolio in order to reduce carbon emissions won’t negate that benefit by simultaneously investing in a coal utility company in another part of their portfolio.
NET IMPACT REPORT
It may be possible to have even more impact by directly providing debt or equity capital to smaller projects.
To this end, we set up the Genus-SVX Impact Investment Counsel to build a fully customized impact portfolio of private debt and private equity. We are proud to work with a number of subadvisors that have networks and professional capacity to make direct project-level impact investments.
NET IMPACT REPORT
INSTITUTIONAL NET IMPACT RANKING REPORT