Climate Change Investing Done Right
Investing in the products, technology & materials needed to stop climate change
We believe that Climate Change investing is an area with a lot of potential — and that investment manager GMO is doing it right.
Unlike similar funds that only invest in feel-good “green” areas – with little regard for the price of those areas – GMO’s fund is value-conscious and will invest in all of the products, technology, and materials it believes necessary to get to the end result of decarbonization.
GMO looks at the bigger picture, searching for opportunities to complement the portfolio’s green investments with other key products and materials that are critical in helping us make that shift to decarbonization — like copper, nickel, and lithium — even if they are not typically thought of as “green” investments.
“Decarbonizing the economy is the most important movement in the industry and the economy since the Industrial Revolution.” – GMO’s Jeremy Grantham
GMO’s founder, Jeremy Grantham, is personally invested in the movement. He’s spent the past 40+ years:
- Raising awareness about climate change
- Personally funding a billion dollar foundation to help stop it
- Creating a climate change fund full of the products, technology, and materials essential to helping us transition to decarbonization
GMO’s Value Driven Approach
“Economics will drive the transition to a clean energy world, and the climate change sector will experience strong secular growth. Though we believe there are tremendous opportunities in the climate change sector, we also believe that a disciplined, value-oriented approach and a careful examination of the fundamentals are critical in navigating a sector likely to be rife with hype and stories.” – GMO
Is the GMO Climate Change Fund For You?
You may be interested in the GMO Climate Change fund if…
- You’d like to invest in climate change solutions, but you want to do it prudently
- You want access to institutional-level investments run by highly respected value investors
- You have at least $50,000 to invest in the fund
The GMO Climate Change fund is typically reserved for those with at least $5 million in assets. But through our partnership with GMO, you can open an account with $50,000 or more.
Contact us to get started or learn more.
Frequently Asked Questions
What has the performance of the fund been so far?
As of 1/31/22, the GMO Climate Change fund has returned an average of 0.97% over the prior year, and 19.43%/year over the prior three years. But, as always, past returns aren’t indicative of future results.
Inception Date: April 05, 2017
Returns shown for periods greater than one year are on an annualized basis.
Net of all fees and expenses after reimbursement by the Manager, but not transaction costs, if any. If certain expenses were not reimbursed, performance would be lower.
The performance above reflects the deduction of GMO’s management fees, but not PCA’s account fee (0.2% up to $1 million; 0.1% above that) nor the custodian’s transaction fee for the initial fund purchase ($20).
Returns shown for Class III shares, which have an expense ratio of .78%. The share class we own, Class I, has an expense ratio of .88% as of 6/3/2021. We have shown Class III because it has a longer history.
The results reflect the reinvestment of dividends and other earnings.
Performance data quoted represents past performance and is not indicative of future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance data may be lower or higher than the performance data provided herein.
What’s the risk?
The GMO Climate Change fund is a global mutual fund with investments in many companies spread across the world. It has a risk of “average” compared to funds in the same category, according to Morningstar.
What are the fees?
In addition to the fund’s institutional share class fee (.88% as of 5/31/2021), you’ll pay a 0.2% fee to PCA on the first $1 million in your account and 0.1% on anything after that. This fee covers access to the fund and service of your account.
How can PCA get me access to the GMO Climate Change fund?
We have access to the GMO Climate Change fund because our firm has $10’s of millions invested in GMO funds. That creates a relationship with GMO where we’re able to get the personal $5 million minimum waived for our clients.
Who is PCA and what do you do?
Pacific Capital Associates is an independent investment management and financial planning firm that’s been serving San Diego and beyond since 2003. Visit our website to learn more about who we are and what we do.
Do I need to be a PCA client to invest in the GMO Climate Change fund?
The account will be held at Schwab, but you’ll need to sign a contract with PCA to gain access to the GMO Climate Change fund. Other than that, you’re not required to use any of our active management or financial planning services—although we’re happy to help if you’re looking for an advisor!
How can I learn more about GMO?
If you’d like to learn more about the GMO Climate Change fund, we encourage you to look through these resources.
- How to Make Money & Save the Planet (Podcast)
- How and Why to Invest in a Climate Change Strategy (White Paper)
- GMO Climate Change Strategy Product Primer (Short PDF)
- Race of our Lives Re-Visited (Short Version) – (White Paper)
- Race of our Lives Re-Visited (Full Version) – (White Paper)
Contact us in the form below to get started or learn more.
For investors with less than $5 million to invest with GMO, access is available through Pacific Capital Associates (PCA) due to our relationship with GMO. Investment minimum through PCA is $50,000. Accounts are held at Charles Schwab. For investors with $5+ million to invest with GMO, the fund is available directly through GMO.
This brochure is solely for informational purposes. Nothing on this brochure constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Pacific Capital Associates, Inc. manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the brochure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Pacific Capital Associates, Inc. unless a client service agreement is in place. Please contact us at your earliest convenience with any questions regarding the content of this brochure and how it may be the right strategy for you.
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