Climate Resilience Strategy

Strategy Characteristics:

InceptionAugust 30, 2019
BenchmarkMSCI World
PositionSize 5% Maximum
Active Share >90%
Holdings45—65
Top 10 Holdings<40%
Sector+/- 5%
Region+/- 5%
Market CapMulti-Cap
Tracking Error3% - 5%
Beta~1.0
StyleCore

Portfolio Management

Ivka Kalus

Ivka Kalus - Founder, CIO, Portfolio Manager

Investment Strategy

The strategy utilizes a sector and region-neutral risk-controlled framework that seeks to provide long-term capital appreciation and excess returns relative to the MSCI World Index. A combined quantitative and fundamental approach invests globally in a diversified portfolio of companies dedicated to policies, products and services that mitigate climate change and ecological damage. The strategy will not invest in any companies involved in the extraction, processing or sale of hydrocarbons.

An active investment approach to the low-carbon economy
Increasing global temperatures are expected to severely disrupt natural resource cycles resulting in drastic economic and societal changes. We believe companies that are best positioned for resource-efficiency and/or provide products and services to address a low-carbon economy will offer investment opportunities over the long-term. Supporting our thesis, carbon efficiency has shown a positive relationship with financial performance, especially since 2010.

Carbon-risk is quantitatively incorporated through carbon disclosure data to access policies and business activities that have exposure to the themes below:

Climate Themes

Climate ThemesSector Examples
Sustainable Resource Use and ManagementEnergy, Materials, Industrials, Consumer Discretionary, Consumer Staples
Sustainable Food and AgricultureConsumer Staples, Healthcare
Urban Landscape of the FutureUtilities, Real Estate, Industrials
Financial and Social InclusionFinancials, Communication Services
Health for ResiliencyHealthcare
Distributed yet Connected Systems (Innovation)Information Technology, Financials

1”Is Being Green Rewarded in the Market?: An Empirical Investigation of Decarbonization and Stock Returns”, 2017

Contact Phone

(617) 535-9240

Promethos Capital

BOSTON/NEW YORK/TORONTO