Saturday, July 15, 2023

Climate Change Investments

Who says Wall Street doesn't believe in climate change? So what's wrong with all the climate deniers? This week's edition of WealthTrack explores the opportunities presented by companies with the mission of controlling and mitigating this crisis.  


July 13, 2023

Dear WEALTHTRACK Subscriber,

What is the one issue we all pay attention to on a daily basis that is a frequent topic of conversation? The weather. And what is the characteristic frequently attributed to the subject? In this day and age it is climate change.

Climate change and methods to control and mitigate it have become a huge global industry, involving billions, soon to become trillions of dollars. So where are the investment opportunities?   

That is one of the specialties of this week’s guest. He is a newcomer to WEALTHTRACK but his boss, investment legend Jeremy Grantham, Co-Founder and Long-Term Strategist at GMO is not. In a recent interview, which you can see on WEALTHTRACK.com, Grantham discussed bursting market bubbles and his devotion to tackling climate change and his family foundation’s investments in it.   

His colleague is Lucas White, Lead Portfolio Manager of GMO’s $2 billion dollar plus Climate Change Strategy, including the $1 billion dollar GMO Climate Change Fund which White launched in 2017. The global fund has beaten its chosen benchmark, the giant MSCI All Country Index since inception with 12% annualized returns. In giving it a Bronze medalist rating Morningstar called it “a unique offering” and cited its “experienced lead manager who has designed a compelling way for investors to gain exposure to companies that seek to mitigate climate change and adapt to its effects.” 

White is also Portfolio Manager of another high-performing fund, GMO’s nearly $2 billion dollar Resources Fund which he helped design and launch in 2012 and has run since 2015. GMO Resources nearly 8% annualized returns since inception have handily beaten its global commodity index.

In this weekend’s episode White talks about why he launched GMO’s Climate Change Fund and discusses the unusual mix of companies his fund invests in to tackle climate change.

In our EXTRA feature Lucas White tells us what it's like to work for legendary investor Jeremy Grantham. 

If you miss the show on public television, you can watch it on our website over the weekend, along with our past programs and our guests’ One Investment recommendations.  You can also find the WEALTHTRACK podcast on Stitcher and SoundCloud as well as iTunes and Spotify.

Have a lovely summer weekend and make the week ahead a healthy, profitable and productive one!

Best regards,

Consuelo

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