Boulder, Colorado (January 15, 2016) – 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 up during the final quarter of 2015 by 11.02%, while the S&P 500 Index was up 7.04%, and the MSCI All Country World Index was up 5.01%. 2015 was a volatile year in capital markets worldwide, with many indices ending the year basically flat. The GANEX portfolio ended down 1.29% for the year, while the S&P 500 was up 1.37% and the MSCI All Country World Index was down 1.57%.
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 90 securities has generated 96.69% in cumulative total returns since inception. Please see the chart on page two for more complete performance history information, including comparison data.
“For the three months ending December 31, 2015, GANEX’s performance comfortably led its benchmarks. During the quarter, we continued to focus on investing in companies with good fundamentals, which are working in rapidly growing areas. Specifically, we took advantage of market volatility to purchase stocks that had not declined during the previous quarter, and were only a good purchase value in Q4 due to general negative market sentiment, not because of any company-integral issues. The portfolio’s outperformance was driven by positioning in renewable energy, which did well in the wake of ITC and COP21, along with picks among communications, semiconductor and natural and organic food names,” said Jeremy Deems, co-portfolio manager.
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 (SCGA, NEXTX, GAGIP, NGS)
- Serve as a performance benchmark for sustainable active, public equity investment strategies
All data as of December 31, 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. Green Alpha is proudly a Certified B Corporation.
Betsy Moszeter, 303-993-7856 or firstname.lastname@example.org