Boulder, Colorado (July 15, 2015) – Green Alpha ® Advisors, an asset management firm specializing in innovation-driven, fossil fuel free equity portfolios minimizing economic risks associated with climate change and resource scarcity, announced today that its Green Alpha Next Economy Index (GANEX) was roughly flat for Q2 2015 at -0.98%, while the S&P 500 returned 0.28%, and the MSCI All Country World Index was up 0.76% for the period.
The GANEX, established December 30, 2008, is the oldest broad-based, fossil fuel free market index in the U.S., providing investors with a critical benchmark of investment performance through different market cycles. The market cap-weighted index of currently approximately 81 securities has generated 104.37% in cumulative total returns since inception. Please see the chart on page two for more complete performance history information, including comparison data.
“The second quarter of 2015 was a good example of the need for patient capital when investing in emerging solutions, methods and technologies, which take time to be recognized by markets. Q2 was characterized by continued volatility in the energy markets, concerns over growth in China and reactions to geopolitical risks in Europe. In many cases, Next Economy company stock prices were overly punished, resulting in very attractive valuations and growth expectations looking forward” said Jeremy Deems, co-portfolio manager.
Performance during the quarter of two of the GANEX holdings operating in the electric vehicle (“EV”) industry illustrates the current volatile market environment. One of the names held in GANEX in that category is Tesla Motors, Inc. (ticker TSLA), a market leader in electric vehicles, EV powertrains and energy storage systems. It returned 42.11% for the quarter and contributed 0.78% to the total return of GANEX.
Meanwhile, facing non-fundamental headwinds in China, Kandi Technologies Group, Inc. (ticker KNDI), a leading pure EV product provider in China, returned -27.04% during the quarter and detracted 0.24% from the total return of GANEX. Despite impressive quarterly results and guidance, the headwinds in China pulled KNDI down.
ABOUT THE GREEN ALPHA NEXT ECONOMY INDEX (GANEX)
Traditional, bottom-up research paired with a compelling, macro-economic growth thesis based on scientific, demographic and climate trends. Green Alpha begins the investment process by asking, “Does a company, in aggregate, contribute to or mitigate the systemic risks of resource scarcity, climate change or population growth?” The resulting list of Next EconomyTM candidates are then vetted using time-tested growth and valuation methodologies.
The GANEX is an indexed-product designed to reflect and benchmark the Next Economy. It exists to:
- Define all aspects of the Next Economy; green, self-sustaining, eco-efficient, fossil fuel free
- Demonstrate the diversity, growth, breadth and depth of the Next Economy
- Provide a universe of Next Economy companies from which to draw for actively managed portfolios
- Serve as a performance benchmark for sustainable active, public equity investment strategies
All data as of June 30, 2015. This summary is for informational purposes only. Portfolio returns are net of fees, and past returns are no indication of future results. All data is based on the GANEX Model Portfolio, net of annual management fees of 0.30%, and transaction costs. The contents are based on information from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. The SPDR S&P 500 ETF (ticker SPY) is used to represent the characteristics of the S&P 500 Index. MSCI ACWI IMI = MSCI ACWI Investable Market Index. Data cited throughout this document was sourced from Bloomberg Finance L.P. Green Alpha Advisors, LLC is a registered investment advisor. None of the information contained here constitutes a solicitation, offer, opinion, or recommendation by Green Alpha Advisors, LLC to buy or sell any security, or to provide legal, tax, accounting, or investment advice or services regarding the profitability or suitability of any security or investment.
ABOUT GREEN ALPHA ADVISORS, LLC
Green Alpha Advisors is an asset management firm, founded in 2007 on the belief that in order to live and thrive on our planet, we must make an inevitable economic and technological transition to sustainability. Our investment strategies address core economic concerns emerging from the risks associated with resource scarcity and the worst effects of climate change – both exacerbated by population growth. We see innovations that simultaneously address these core systemic risks and improve economic productivity as the greatest growth drivers of the 21st century.
Betsy Moszeter, 303-993-7856 or firstname.lastname@example.org