Rational approach to green investing undergirds environmental ardor
When it comes to investing, you want to know that passion about our ecological future is paired with a disciplined approach to evaluating and selecting securities.
The Energy Alternatives Fund reflects the carefully developed methodology that American Trust brings to its individual portfolios as well as its mutual funds. This methodology screens the universe of known stocks and looks for quality at good value. You can follow the methodology pyramid that illustrates this process.
Base of pyramid: Long-term perspective on cycles and growth
Fund Managers start by looking at energy consumption, reserves, population growth, and other factors to determine how pressing the need is for a transition to non-carbon-based energy alternatives. This perspective helps project likely scenarios and inform the Fund's view on the outlook for renewable energy and conservation.
Macro environment and sustainable investing themes
Fund Managers review public and economic thinking regarding the development of energy alternatives and what sectors of sustainable technologies show promise.
Valuation, technology, competitive advantage
Fund Managers focus on finding little known as well as established companies that own or are developing scientifically sound energy alternatives.The Fund seeks companies that have acquired a market advantage or show a competitive advantage. Obviously,the goal is to select those technologies that are growing or are expected to grow, and to find them when they are still a good value.
Careful stock selection among environmental investments
Stock selection involves screening nearly 300 companies in over 30 different countries. The Fund looks at such fundamentals as earnings,earnings growth, price-earnings ratio, cash flow, leverage and capitalization,returns on equity and capital, performance comparisons, sector comparisons, and more. (Please click here for term definitions on the FAQs page.)
Peak of pyramid: green fund portfolio construction
This is where it all comes together. With an eye to balance among technologies, the three types of opportunities (see three-tier strategy),investment sectors, countries, etc., the Fund actively constructs, monitors, and adjusts its global portfolio based on the methodology shown on the pyramid.