Stropro has rolled out an “unlisted and targeted” index – Greener America Ahead Basket (GAMA) – managed by Société Générale containing 48 companies that are set to benefit from President Joe Biden’s pledge to spend $2.25 trillion on a green transition.
“Recently the ESG and green theme has resonated strongly with our clients. There is a macro trend evident in post-COVID fiscal policy across the globe to direct policy and funding towards sustainable initiatives and green jobs,” said Stropro chief product officer Ben Streater.
“There are many factors that indicate potential outperformance from companies exposed to a greener future: investment allocation preferring ESG; intergenerational wealth transfer to a generation with a preference towards sustainable investing; governments committing trillions of dollars of investment towards green infrastructure; and increasing ESG reporting and compliance is another.”
The plan will see America build a carbon pollution-free power sector by 2035, upgrade 4 million buildings and provide net-zero public transport options. The GAMA basket will be the third investment in a series targeting economies transitioning to a greener economy, available on Stropro’s investment platform for wholesale, sophisticated investors and their advisers.
“This index has performed strongly with a 106% return over the past twelve months, topping the 89% return of the Nasdaq and the 74% return of S&P 500," said Charles de Boissezon, global head of equity strategy at Société Générale.
“At a time of rising US Treasury yields, valuations are a broader concern across asset classes, but appear quite reasonable for the GAMA basket when compared to the major indices. It has a P/E ratio of 25x, thanks to its diversification, compared to 31x on the Nasdaq and 22x on the S&P 500”.
