Editor’s Note: This is the third in a series of articles. To read other articles in the series, click here: article 1, article 2.
Over the past three months, I interviewed 12 women who are trendsetters and innovators in the impact and sustainable finance sector. These women leaders are clear about today's capital market opportunities and risks. They are embracing both as the investment industry transitions toward a low carbon economy with greater emphasis on the economic value of intangible corporate assets and social impact enterprises.
These women are using their industry experience and leadership platforms to articulate a powerful message regarding the rapid growth in the use of non-financial data to drive investment performance and risk management.
Turning Problems Into First-To-Market Investment Opportunities
In September 2017, one year after its launch, the Green Century MSCI International Index Fund, which invests in stocks included in the MSCI World ex USA SRI ex Fossils Fuels Index, had already surpassed its two-year AUM target. For Leslie Samuelrich, president of Green Century Capital Management since 2013, this accelerated pace of growth is the result of pent-up-demand from investors for greater diversification of ESG investment products. In my conversation with Samuelrich in December 2017, she was clear that “this first-to-market, international, fossil-fuel free index fund is providing a portfolio solution that investors and advisors have needed, and it is also performing well. That combination is attracting new advisory firms as early adopters, for which we are excited and grateful.”
Seeing problems as opportunities is a key reason Samuelrich has become a leader in the ESG/Impact investing industry. Assets under management (AUM) in the Green Century Funds have grown from $120 million to $550 million during her tenure. She is using the company’s mission related to its unique ownership structure to drive shareholder advocacy. Green Century Capital Management, the investment advisor of Green Century Funds, was founded in 1991 by a partnership of nonprofit environmental advocacy organizations, making it the only investment advisory firm with this ownership structure.