Investing in ‘Conscious Companies’
On July 12, 2016, Global X launched the Conscious Companies ETF (KRMA), which invests in companies that have exhibited a commitment to creating positive outcomes for a variety of stakeholders, including employees, customers, communities, suppliers, and stock and debt holders.
What makes KRMA different from other ESG/SRI investment strategies?
- It is the first and only ETF to focus on companies that score highly on the academically backed Multi-stakeholder Operating System (MsOS)
- It is based on a proprietary 3-step process for positively identifying companies that meet a high standard for sustainable and responsible investing
- It utilizes dozens of quantitative and qualitative sources to ensure accuracy and quality in its analysis of companies for potential inclusion.
What are the Characteristics of a Conscious Company and the ‘MsOS’?
Who is the Index Provider behind this ETF and How Do they express their Core Philosophy?
The Global X Conscious Companies ETF tracks the Concinnity Conscious Companies Index which was developed by Concinnity Advisors. The index provider’s mission is to achieve long-term investment excellence while having an influential effect on the transformation of capitalism.
Peter Derby, Founding Partner: “We believe this new era of capitalism is being ushered in by companies that are proving compromises do not have to be made between creating wealth for shareholders and tending to the interdependent needs of multiple stakeholders, (i.e., customers, employees, communities and suppliers).”
Rick Frazier, Founding Partner: “We believe companies operating with this more holistic view will paradoxically deliver more long-term value for shareholders than those operating with an overemphasis on shareholder value to the neglect of other stakeholders.”
Alex Romeo, Director of Quantitative Analysis: “We believe companies that act in the long term best interest of all their stakeholders will outperform companies that are driven only by the short term benefit of their shareholders.”
What are the Basics of the 3-Step Conscious Company Positive Screening Process?