06 Jul Thematic Investing: Three Reasons For Sustainability
Lower the risk and increase the returns—this is the mantra repeated by almost every asset manager. Genus Capital has created a leading edge investment product offering a three-fold benefit to investors—whether or not their goals include improving the health of the planet.
Genus Capital has nine sustainability themes that guide their investments in leading for-profit companies whose products, services and programs are creating the world’s greatest positive social and environmental impact. These investments form the Genus Fossil Free Impact Equity funds.
Genus begins by considering for-profit and fossil-free companies with strong environmental, social and governance (ESG) performance. From that list, only the one hundred companies with the highest environmental and social impact within Genus’ nine sustainability themes are advanced for further consideration. The final screen selects the 25 highest performing equities, based on six more criteria, such as value, growth, and earnings expectations.
No Liquidity Risk
Unlike a lot of impact investing, Impact Equity focuses on publicly-traded for-profit companies. Your assets remain liquid and flexible.
Less Financial Risk
These are not startups or risky ventures, but rather larger, established, and profitable organizations that offer more certainty of earnings expectations and performance.
In retrospect, the companies in Genus Impact Equity have outperformed the MSCI World index monthly by 58% over the last 10 years. This translates to an average annual return of 13.9%.
Low risk, high return, and high impact—an attractive proposition for any investor, impact or not.