Portfolio

Strategic Innovations' NetZero Portfolios To Reshape ESG Investing

First active portfolio to dollar-for-dollar reduce CO2

NEW YORK, Dec. 14, 2021 /PRNewswire/ — Strategic Innovations Advisors (“SIA”) is proud to announce the launch of its paradigm-changing NetZero investment solution.

NetZero, currently available as an SMA and expected to be available in early 2022 as an ETF, is an actively managed portfolio which seeks to outperform the stock market, but through an innovative design structure will be the first such investment to pro-actively reduce – on a dollar-for-dollar basis – the carbon emissions linked to the stocks held by the NetZero portfolio. The concept and design is so innovative that SIA recently filed a patent on this offering.

As explained by SIA’s CEO, John Pileggi, “Investors increasingly want their investments to reflect their values, and the NetZero portfolios take that concept to the next level.” He added, “NetZero is not a passive investment. It is actively managed with the goal of outperforming the market, and built to actively reduce carbon in the environment. It truly embodies the concept of doing well while doing good.”

EAM & Decarbonizing

NetZero portfolios are built using the investment advantages of Ensemble Active Management (EAM), an AI-powered approach to investing that is rapidly demonstrating its potential to outperform traditional active managers. The portfolio is then “decarbonized” to achieve a true NetZero environmental footprint.

The decarbonizing component is an overlay to the investment portfolio, and is conducted on a monthly basis. Through a partnership with a world renowned non-profit that specializes in building net zero solutions, SIA measures the carbon footprint of every company we invest in, ton by ton. Carbon permits are then purchased from cap-and-trade compliance markets and “vaulted” (i.e., locked them in a vault) so emitters can’t use them. Because the number of permits is capped, this permanently decreases the amount of global carbon dioxide pollution.

The cost of the carbon permits are expected to be between 0.03% to 0.15% (3 – 15 basis points), and will be funded entirely by SIA from its management fees. John Pileggi indicated that, “NetZero is not a marketing gimmick for us. We are as committed to the concept as our clients, and are proud to cover the cost of the carbon permits from our management fees.”

Prominent Testimonials

Investors increasingly want their investments to reflect their values, and the NetZero portfolios take that concept to the next level...

Paula DeLaurentis, a long-term advocate for Socially Responsible Investing (SRI) and a Senior Advisor to SIA, stated, “NetZero will be a game changer in the world of SRI and ESG. Too often environment-based products are passive investments that make investors feel good, while then carrying a structural performance penalty. Not our NetZero portfolios.”

Terry Mollner, a co-founder of the Calvert Social Investment Funds and the first and largest family of social funds, and the founder and chair of Trusts for All Children, stated, “I’ve known John Pileggi for several years now and have been impressed by his desire to use the private sector to facilitate areas like sustainability and increased generosity. SIA’s NetZero has tremendous potential to bring together different technologies to reduce carbon emissions.”

NetZero Investment Solutions

NetZero SMAs (Separately Managed Accounts) are immediately available through several wealth management firms. If interested in learning more about NetZero investment solutions, please contact SIA at www.rangeeagle.com.

 

 

 

About Strategic Innovations Advisors:
Strategic Innovations Advisors (“SIA”) is an SEC-Registered Investment Manager founded on the dual focus of active management and the growing demand for SRI (Socially Responsible Investing) and ESG (Environmental, Social, and Governance) investments. SIA was founded by John Pileggi, who has been Chairman, President and CEO of asset managers and mutual funds for over 30 years.
Our beliefs include:
  • While trillions of dollars in assets have moved into passively managed strategies, advances in AI-based technology create opportunities for consistent generation of Alpha.
  • SRI and ESG investing is not a fad. It reflects a fundamental shift in investor demand to align their values with their investments and investment objectives. As a result, huge and impressive inflows of assets are seeking ESG-category solutions.
  • Current ESG portfolios may suffer from unclear screening, subjective management and sub-market returns. But we believe that the NetZero investment solution solves these concerns.