Explore the Thinking behind our investment approach

Climate Week NYC is “the largest annual climate event of its kind, bringing together some 400 events and activities across the City of New York – in person, hybrid and online. The event takes place every year in partnership with the United Nations General Assembly and is run in coordination with the United Nations and the City of New York.”[1] The Nest Climate Campus at The Javits Center is one of the leading event partners of Climate Week NYC, and was created to establish a unified central destination in the city for people to convene.[2] Jeff recently sat down with Britton Jones, Founder and CEO of The Nest Climate Campus, to talk more about the event, which will attract thousands of people to The Javits Center from September 19th – 21st.

We are pleased to offer you a complimentary livestream invitation to our annual Climate & Capital Conference on Wednesday, September 20th, hosted at the New York Stock Exchange during Climate Week NYC. This year’s conference will be centered around three interconnected themes: adaptation, innovation, and regulation (“AIR”). Over the next decade, we believe that industry professionals will face increasing exposure to both known and emerging risks, including physical climate risk, biodiversity loss, large-scale human migration, and changing regulatory frameworks. Advances in environmental technologies and new ideas for improving the effectiveness of government policies are likely to shift the landscape even further. The 2023 Climate & Capital Conference will provide attendees with practical tools to navigate climate-related challenges and opportunities. The conference will include a series of panels, fireside chats, and interactive discussions with industry leaders around strategies for both mitigating risk and fostering innovation to reduce emissions and build resilience for the world’s most vulnerable communities. Please see a full list of speakers and working agenda here Climate & Capital Conference New York Stock Exchange September 20, 2023 Register for Complimentary Livestream

Since 2020, we’ve been discussing what we call The Great Repricing: the gap between the physical risk from climate change and the time it takes for the markets to price in this risk. As climate-related disasters increasingly inflict significant losses, insurance companies continue to face challenges in providing affordable coverage. In 2021, the rise in climate-related disasters led to $145 billion in damages and resulted in higher home insurance premiums for 90% of homeowners.1 The devastating wildfires in California have led to premium hikes, tougher eligibility requirements, and have now compelled insurance giants Allstate and State Farm to pull out of the California Homeowners Insurance Market. The annual cost of U.S. flood damage has more than quadrupled since the 1980s,2 and this will only grow given climate-driven extreme rain, more intense hurricanes, and rising seas. Many local governments have expressed concern that helping people relocate could decimate their tax bases. See what Jeff had to say about all of this in this recent interview: Since 2020, we have been sharing our understanding of the potential impact of these climate trends, and incorporating a variety of investment metrics, including climate repricing risk, into our model portfolio construction process. Learn more about our Climate Unified Managed Accounts today. And for more information about The Great Repricing, download our white paper and watch Jeff’s TV show on Fintech.tv.

Increasingly, investors consider climate risk to be investment risk. So, what can you do to better manage risk and adapt to a world where climate may be an important consideration when pricing and valuating assets? Save the date for this year’s annual Climate & Capital Conference, hosted at the New York Stock Exchange during Climate Week NYC, and join thought leaders from the investment, business, and climate communities to discuss practical solutions to address climate challenges. Topics will include: Climate adaptation and mitigation Innovations in climate technology and data Regulatory updates, and much more This event will take place at the iconic New York Stock Exchange and broadcast simultaneously via livestream on Wednesday, September 20th, 2023. More info and detailed agenda to be released soon!

By Jeff Gitterman In my travels to various conferences and my connection to many RIA firms, I keep hearing an increasingly familiar story. “The growth of my practice is shrinking due to market declines and the passing of my clients as they age, and it’s the first time in years that I have to market for new clients.” A firm’s future valuation can be impacted if these observations go unaddressed. 2022 brought a ten percent increase in RIA acquisitions,[1] yet declining asset growth at the firm level over the same timeframe reveals the advisor’s dilemma. The median age of an advisor is on the rise,[2] and sadly, as the clients of these advisors also continue to get older, their mortality rates will increase, while the retention of next generation heirs tends to be very poor.[3] I often hear from other advisors that either their technology platform or investment options don’t meet the needs of the heirs of their clients, who in general are much more interested in values-based investing.[4] Add in increasing complexity due to product proliferation, changes in technology, and regulatory overload, and it is clear that the present-day advisor faces numerous challenges retaining the next generation of clients. Unified Managed Accounts (UMAs) have the potential to simplify investment management and give time back to advisors, while also providing attractive features that next generation clients can find appealing enough to stick around. As examples, UMAs allow a client to own their own cost basis, which can be attractive to heirs inheriting a stepped-up basis, and are housed under a single contract to simplify the account opening process. Additionally, our UMAs offer values screens, ESG diligence, and a focus on the risk and opportunities inherent in the marketplace due to climate change, which is often an expressed interest to a variety of investors, and offer the potential to solve many of the above pain points.

Q: Tired of scrambling at year end to tax harvest your client’s portfolios? A: Solve the year end time crunch by utilizing an automated tax overlay strategy throughout the year. For the right clients, a Unified Managed Account (UMA) can seamlessly execute tax harvesting across your book. This kind of approach avoids the year end crunch and can enhance your value during annual meetings with the use of customized annual tax harvesting reports.