Responding to the growing demand for impact-oriented options, QRG Capital, part of Envestnet, recently launched the Impact Global Climate Solutions QP, part of its Quantitative Portfolio series.
The new offering represents an evolution toward more targeted, thematic portfolios within its Impact group of portfolios, said Brandon Thomas, co-founder and chief investment officer for Envestnet.
“Because there’s so much interest in climate change, it has generated the most interest,” he said.
The main goals of the Global Climate Solutions QP are to eliminate investments in fossil fuels and to highlight companies dedicated to solving climate-related issues. The strategy focuses on renewable energy, energy efficiency, green transportation, green buildings and sustainable agriculture, each of which has an allocation 200% higher than its benchmark.
“This gives advisers another tool to help clients align their portfolios with their values. It helps the advisers set themselves apart, especially with young investors,” Thomas said.
— Deborah Nason