Vancouver, BC, Jan. 31, 2020 (GLOBE NEWSWIRE) -- Today, Genus Capital, an investment management firm, releases a new report demonstrating the positive return of investment of its enhanced Low-Volatility, High-Yield (LVHY) strategy for fossil free portfolios.
During turbulent times, investors desire downside protection, and a LVHY strategy is a suitable approach. However, long-term holdings in high-dividend portfolios tend to focus on utilities, energy, tobacco and other controversial industries, which means this strategy has traditionally posed a challenge for investors wanting to align their portfolios with their values.
As climate change action increases globally, so too does the number of investors removing fossil fuels from their portfolios and looking for sustainable investment solutions. This report proves that key improvements would enhance Genus’ Fossil Free Dividend Equity Fund, and make a LVHY strategy effective for sustainable investors who exclude controversial industries from their portfolios.
Mike Thiessen, Partner & Director of Sustainable Investments, Genus Capital explains: “Genus has been offering innovative investment solutions for more than a quarter of a century. We’re always looking for ways we can improve, refine and hone our strategies, to not only align with the market, but also our clients. We’ve sought to enhance the Fossil Free Dividend Strategy to ensure that a LVHY strategy will work for sustainable investors, as well as traditional investors.
“Over the 13 year backtest, the improved strategy outperformed the market benchmark over the period. The enhanced strategy was shown to capture 110 per cent of the upside market movements and only 61 per cent of the downside, resulting in an annualized active return of 6.78 per cent. Although this strategy has only recently been integrated, the potential success is clear and we have demonstrated that investors do not need fossil fuels to build a sound dividend strategy.”
To download the Dividend Report, please click here.
Genus Capital also has its six-year fossil free investment data, which shows that divesting from fossil fuels has had a positive effect on returns. Genus’ 2019 Divestment Report can be downloaded here.
About Genus Capital Management Inc.
Genus Capital Management Inc. is an independent investment management firm based in Vancouver, founded in 1989. Genus is passionate about creating innovative investment solutions that meet our clients' changing needs. With more than $1.6 billion in assets under management, Genus' clients include leading environmental organizations, foundations, and individuals across Canada. Today, Genus Capital is at the forefront of Canada's Divest-Invest movement with a complete suite of fossil fuel free funds that are tailored to meet the needs of investors who wish to invest in a sustainable, clean energy future.