"Neutral" Divestment: Remove, Rotate, Replace.
For most clients, it’s hard or unproductive to simply sell everything and start over. We use donor advised charitable funds to offload highly appreciated fossil fuel assets to reduce the client’s tax burden.
This fund can then be used for charitable donations or philanthropy. What began as a tax liability is now a tax deduction.
Then, we “rotate” your equities investments into low-cost sector funds that don’t have fossil fuel exposures.
This allows us to adjust the relative weights of each sector on a cyclical basis to take advantage of the ups and downs of the business cycle.
We then replace the energy and utilities sectors in your portfolio with a custom asset engineered to capture global industrial growth exposure and hedge against inflation.
We are able to do this because of our experience trading derivatives and macro-economic perspective.