Vert Asset Management Launches the First Sustainable Real Estate Mutual Fund in the US
Vert Asset Management, a dedicated ESG investment manager, recently announced the launch of the Vert Global Sustainable Real Estate Fund (Ticker: VGSRX), an open-end mutual fund which seeks to achieve long-term capital appreciation. The Fund invests across the globe in publicly listed real estate investment trusts (REITs) using evidence-based environmental, social and governance (ESG) metrics.
“Is this new Vert fund simply a ‘feel good fund’ for those concerned about climate change? The rapidly increasing commitment to ESG investing by institutional investors suggests otherwise. With Vert, individual investors and their advisors will now have access to the real estate asset class on an ESG basis.”
“We are the first sustainable real estate mutual fund available to US investors. Financial advisors are looking for more choices in ESG funds to round out their asset allocations. They’ve asked us for a pure real estate fund that meets their clients’ preference for sustainability,” said Sam Adams, Vert Chief Executive Officer and Co-founder. Mr. Adams added, “Vert’s mission is to make sustainable investing easier. We are proud to bring this solution to market.”
Dan Wheeler, Vert Advisory Board Member, explained, “Is this new Vert fund simply a ‘feel good fund’ for those concerned about climate change? The rapidly increasing commitment to ESG investing by institutional investors suggests otherwise. With Vert, individual investors and their advisors will now have access to the real estate asset class on an ESG basis.”
The Fund’s proprietary ESG research methodology integrates academic research, industry best practice, and third-party data to evaluate companies for sustainability. The portfolio will buy REITs that are committed to sustainability. The Fund uses a long-term buy-and-hold strategy, and companies are held at approximately market cap weights to maintain diversification and reduce turnover. Professor Franz Fuerst, a member of Vert’s Investment Research Group, said, “We wanted to create a fund that delivers the real estate market return but that only invests in sustainable companies.”
The Fund is subadvised by Dimensional Fund Advisors LP, which brings more than 36 years of experience in efficient portfolio management and trading. Vert designed the fund strategy and oversees the eligible universe of securities, and Dimensional is focused on the implementation of the strategy. “We are excited to work with Vert Asset Management and provide subadvisory services for the fund,” said Joseph Chi, Co-Head of Portfolio Management at Dimensional.
Professor Gary Pivo, a member of Vert’s Investment Research Group, said, “Real estate has a huge impact on the environment, but it’s also a huge opportunity; buildings generate 25% of global greenhouse gas emissions, but reducing those emissions by reducing energy use is often very profitable. Many REITs are taking advantage of this, but many more could take advantage of this opportunity. A mutual fund available to mainstream investors is what the real estate market needs to move towards more sustainable practices.”
Vert aims to be an active and engaged shareholder. Sarah Adams, Vert Chief Sustainability Officer and Co-founder, added, “REITs have abundant opportunities to maximize stakeholder value by being more sustainable and more transparent. Through direct engagement and coordinated campaigns with other asset owners, we will encourage REITs to do more in terms of sustainability and disclosure.”
For more information: http://www.vertfunds.com/
About Vert Asset Management
Vert is a dedicated ESG fund manager. Founded in 2016 in San Francisco, California, Vert’s mission is making investing for sustainability easier. The firm works in close consultation with academic experts and experienced portfolio managers to create investment products that work for the wealth management community. As a business, Vert practices the triple bottom line approach by focusing on people, planet and profit. Learn more at www.vertasset.com
About Dimensional Fund Advisors
Dimensional Fund Advisors is a global investment firm that has been translating academic research into practical investment solutions since 1981. With clients around the world, Dimensional has 12 offices in eight countries and global assets under management of US$548 billion as of September 30, 2017. Learn more at www.us.dimensional.com
Mutual fund investing involves risk. Principal loss is possible. Investors should be aware of the risks involved with investing in a fund concentrating in REITs and real estate securities, such as declines in the value of real estate and increased susceptibility to adverse economic or regulatory developments. Investments in foreign securities involve political, economic and currency risks, greater volatility and differences in accounting methods. Futures contracts and options on futures may be more volatile than investments directly in the underlying securities. Diversification does not guarantee a profit or protect from loss in a declining market.
Before investing you should carefully consider the Fund’s investment objectives, risks, charges, and expenses. This and other information is in the summary or statutory prospectus, a copy of which may be obtained by calling 1-844-740-VERT or visiting the Fund’s website, www.vertfunds.com . Please read the prospectus carefully before you invest.
Vert Asset Management fund is distributed by Quasar Distributors, LLC.
Samuel Adams, CEO, Vert Asset Management
Phone- (415) 650-7129