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sustainable investments

for Sustainable
Practices

/ Solutions

Simplifying complexity for financial professionals

Sustainable investing enables the evaluation of broad themes that may impact investments. As a fiduciary with a long-term focus, we believe it is critical to systematically evaluate all relevant risks and opportunities.

Our SMART (Sustainability Metrics Applied to Risk Tolerance)® Investing Solutions are climate-aware, incorporate ESG (environmental, social, and governance) data, are designed to be core holdings, and aim to deliver above average risk-adjusted returns. Every investment manager and strategy within our solutions have been vetted according to our own rigorous, institutional quality investment methodology.

As ESG topics are dynamic, complex, and often interactive, they require the deep research and analyses associated with active management. With increasingly sophisticated data, there are many ways to apply a climate or social lens to an investment strategy. As an asset allocator, we specialize in understanding the nuances of an expanding sustainable investing universe and evaluating diverse managers and strategies to find compelling opportunities.

SMART (Sustainability Metrics Applied to Risk Tolerance)® Investing Solutions for Financial Professionals

Our SMART models are a family of global climate-aware allocation strategies. They are core holdings, tailored for risk tolerance, designed for above average risk-adjusted returns, and deliver the meaningful impact investors seek.

SMART Climate Unified Managed Account (UMA) Models

  • Our climate-focused UMA models comprise actively managed Separately Managed Accounts (SMAs), across four risk iterations, and an all equity version
  • We include world-class managers who use cutting edge climate science to incorporate physical climate risk alongside boutique and emerging managers normally unavailable in a UMA format
  • Our models also benefit from market-leading tax overlay capabilities, including customized tax-loss harvesting and flexible transition management from existing investments, powered by Natixis*

SMART Managed Mutual Fund Models

  • We offer ESG and fossil-fuel free models comprising mutual funds and ETFs, across five risk iterations
  • Our models include managers with strong performance track records, sophisticated ESG integration, and firm-level commitments to sustainability
  • Our fossil-fuel free variations offer divestment from fossil fuels,** ensuring no investment in the Carbon Underground 200 and the “Filthy 15”

* Gitterman Wealth Management, LLC and Natixis Advisors, L.P. are separate and distinct federally regulated entities.
** as defined by the Morningstar global equity classification system

The SMART Climate Approach

Climate risk falls into two categories:

TRANSITION RISKS: these include the potential impacts of changes in policy, regulation, and litigation, etc. from moving to a low carbon economy. These risks are increasingly well understood by companies and investors alike, increasingly reflected in ratings and index creation.

PHYSICAL RISKS: these risks are derived from the impacts of increased heat, drought, wildfires, and hurricanes, etc. At present, these are less well understood, less likely to be reflected in ESG data and therefore less likely to be priced into investments. However, innovative new data sets and analytics are coming to market across asset classes.

Our SMART Climate UMA Models include managers whose investment theses and philosophies account for physical climate risks, meaning these strategies may look very different from existing benchmarks.

Strategies focused only on transition risk generally have low tracking error compared to traditional benchmarks. As a result, they will likely react similarly to the indexes during a climate “event.”

Wherever possible, we allocate to managers who are exploring climate scenarios and their potential physical and broader socioeconomic impacts.

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SMART Climate UMA Models

ESG UMA Models

Our ESG UMA models are comprised of actively managed Separate Accounts (SMAs), across four risk iterations, and an all-equity version. These portfolios utilize Environmental, Social, and Governance (ESG) data to select “best-in-class” separate account managers to create ESG integrated core portfolios that are tailored for risk tolerance and designed for above average risk-adjusted returns.

These portfolios include all of the potential benefits of UMA implementation technology, such as market-leading tax overlay capabilities, including customized tax-loss harvesting and flexible transition management from existing investments. The model minimum is $300K.

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SMART Climate UMA Models

ESG Mutual Fund Models

The SMART ESG Portfolios are a family of global climate aware investment allocation strategies. Environmental, Social, and Governance (ESG) data is used to select mutual fund managers and ETFs. The models serve as a core portfolio holding, tailored for risk tolerance, and designed for above average risk adjusted returns. We select managers with a strong performance track record, sophisticated understanding of ESG integration and a driving commitment to sustainability principles within their firms.

SMART Managed Mutual Fund Models

Fossil Fuel Free Mutual Fund Models

The SMART Fossil Fuel Free models are a family of global climate aware investment allocation strategies. Environmental, Social, and Governance (“ESG”) data is used to select mutual fund managers and ETFs. The models offer divestment from any company listed on the Carbon Underground 200 and the “Filthy 15.” The models serve as a core portfolio holding, tailored for risk tolerance, and designed for above average risk adjusted returns. We select managers with a strong performance track record, sophisticated understanding of ESG integration, and a driving commitment to sustainability principles within their firms.

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SMART Managed Mutual Fund Models

MIX AND MATCH: THEMATIC SMAs

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Subject to our rigorous diligence, our thematic offerings can enhance your clients’ investment portfolios through exposure to major structural trends, additional diversification opportunities, and/or align with investor values and preferences. Certain strategies are exclusively offered by Gitterman Asset Management and are unavailable elsewhere at comparable investment minimums.

Access

Available on multiple custodians via Gitterman Asset Management on Natixis

Adasina Social Capital

SOCIAL JUSTICE U.S. LARGE CAP

With a mission to deliver large-scale, systemic change via the markets, the firm serves as a unique bridge between social justice and the financial system.

U.S. large-cap strategy aligned with social justice values and integrating financial activism.

The universe is screened through Adasina’s 40+ social justice screens and 80+ metrics comprising proprietary and community-sourced social justice datasets and commercial ESG information.

Firm Holdings

40-50 Equities

Benchmark

Russell 1000

Firm Regions

U.S.

Firm Sectors

IT, Health Care, Financial, Comms Services, Cons Disc., Cons Staples

Manager Exclusions*

Adasina Social Justice Investment Criteria (Race, Gender, Economic, and Climate)

Firm Fees

80 bps / $100,000

KBI Global Investors

GLOBAL SUSTAINABLE INFRASTRUCTURE

Differentiated by uniting ESG and infrastructure capabilities, KBI offers exposure to energy, water and agribusiness at lower fees than private markets

Global all-cap strategy with competitive yield, lower correlation to traditional equity benchmarks, and consistent historical performance, targeting 3.5-4.5% dividend yield

Invests in sectors uncommon in most infrastructure strategies. Primary themes: Energy, water, agribusiness solutions

Firm Holdings

30-50 Equities and ADRs

Benchmark

S&P Global Infrastructure Index

Firm Regions

U.S., Europe, EM, Japan

Firm Sectors

Utilities, Infrastructure CAPEX, Asset Owners

Manager Exclusions*

N/A

Firm Fees

70 bps / $100,000

Water Asset Management

GLOBAL WATER EQUITY FUND, LP

The only exclusively water-focused investment firm with both public and private equity experience, benefiting from deep industry relationships

Global SMID strategy with U.S. bias investing exclusively in companies and assets that grow earnings by ensuring reliable water quality and supply

Water is the ultimate expression of climate change given the impact on hydrological cycles, driving the need for water-related investment

Firm Holdings

23-35 Equities and ADRs

Benchmark

MSCI ACWI

Firm Regions

Global, U.S. bias

Firm Sectors

Utilities, Infrastructure, Water Tech, Water Treatment, Ag

Manager Exclusions*

N/A

Firm Fees

70 bps / $100,000

Wellington Management

CLIMATE RESILIENCE

One of few managers using sophisticated physical climate risk data, alongside expertise from 80+ climate scientists at the Woodwell Climate Research Center

Global all-cap seeking long-term capital appreciation from stocks addressing physical climate risk through adaptation to, and protection from, climate change

Companies are poised to help adapt to changes across the livability spectrum: from existence to comfort to thriving

Firm Holdings

15-40 Equities

Benchmark

MSCI ACWI

Firm Regions

Global, U.S. bias

Firm Sectors

Unconstrained

Manager Exclusions*

N/A

Firm Fees

80 bps / $100,000

*Custom exclusions (e.g., individual equities, sectors, ESG ratings/topics) can be added at the individual account level via the Natixis platform.

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