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Stropro targets Biden’s multitrillion-dollar climate play

By Reporter
 — 1 minute read

Stropro will offer investors exposure to President Joe Biden’s $2.25 trillion plan to make America’s economy greener and more sustainable.

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.

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“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”.

 

 

 

Stropro targets Biden’s multitrillion-dollar climate play
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