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U.S. Trust Offers Carbon-Free Portfolio

U.S. Trust has launched a new component for its Socially Innovative Investing strategy that excludes carbon-related companies, U.S. Trust announced Monday.

The Carbon Reserve Free Strategy is a portfolio that excludes companies that own, extract, distribute or process carbon reserves, as well as heavy users of carbon such as the utilities and energy sectors.

The CRF was developed in response to rising demand among investors for companies with superior environmental business initiatives, U.S. Trust says. The strategy is designed to provide clients with a U.S. equity allocation that delivers risk-adjusted returns comparable to its S&P 1500 benchmark with companies that are environmentally focused.

“We know investors care about the environment and increasingly want to express this through their investments,” says Jason Baron, head portfolio manager for social investments at U.S. Trust. “Investing in companies that support the environment, sustainability and carbon divestment principles is one way to have a positive impact on the world for future generations while continuing to seek returns and adding eco-friendly investment options to client portfolios.”

“We are seeing dramatic growth in the use of strategies that advance positive societal values,” says Christopher Hyzy, chief investment officer for Bank of America’s Global Wealth & Investment Management division, which includes U.S. Trust and Merrill Lynch Wealth Management. “As these investing strategies become more sophisticated, they no longer necessarily require a trade-off in performance, increasing their appeal to investors.”

 

 

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