The Power of Positive Investing
Earth Equity Advisors’ Signature individual stock portfolio
Earth Equity’s Peter Krull with Randy Talley
It All Started Over a Cup of Organic Coffee …
In 2012, Pete Krull – Partner & Director of Sustainable Investments – was enjoying a cup of coffee with friend and NC organic foods pioneer, Randy Talley, who many in the community consider to be the “green sage.” Before this inspirational coffee chat, Earth Equity Advisors primarily focused on mutual fund portfolios, but when the idea of “creating a basket of sustainable stocks” came up … Pete saw a valuable opportunity for his clients.
Over the next several weeks, the initial investment philosophy, metrics and parameters for the portfolio took shape. A universe of potential stock investments were evaluated and the list was narrowed to an optimized first set. And in Randy’s honor, the Green Sage Sustainability Portfolio was born.
What Makes this Portfolio Special?
Earth Equity focuses on positive investing — always asking the question, “what do we WANT to own?” Historically, responsible investing has focused on exclusion, and while we do exclude all companies involved in the fossil-fuel industry, that’s where the similarities end.
What Do You WANT to Own in a Sustainability Portfolio?
- Alternative energy – solar, wind, geothermal
- Energy efficiency
- Battery technology
- Water distribution, filtration, and efficiency technologies
- Green transportation
- Natural and organic products and services
- Sustainable real estate
- Information technology and the internet of things
- Green finance, insurance, and community investments
- Recycling and circular economy
- Scientific instruments
- Green building technology
- Cutting edge biotechnology
Portfolio Information
- Universe of 500+ global companies
- Benchmarked against the MSCI All Cap World Index
- 70-80 stocks
- Must have a sustainable product, service or corporate ethic
- No more than 4 stocks per sub-sector
- Minimum 30% of companies domiciled outside of the USA
- Companies cannot be involved in extraction, processing or transportation of fossil fuels
- At least 50% of companies must be profitable
- Stock price of at least $5.00 per share
- At least 20% of companies must pay a dividend
- Stocks must be liquid and trade at least 2000 shares per day
- Approximately 50% of stocks are large-cap, 30% mid-cap and 20% small cap
- Market cap weighted
- Dec 1 rebalance can replace up to 100% of portfolio
- June 1 rebalance can replace up to 30% of portfolio
- We utilize research data from multiple sources, including Morningstar and Sustainalytics
