Impact Indexing

 

Bantam combines the low cost and tax-efficiency of stock market indexing with bespoke alternative filtering and weighting criteria.  The result is a portfolio that aligns with the client’s best interest and their values.

 

This is the future of investing.

How Does Impact Indexing Work?

 

We build customized indexes that meet multiple criteria, including:

 

  • Environmental, Social, and Governance:  These are the traditional criteria (which used to be called “Socially Responsible Investing”).  However, these terms mean different things to different people.  Some clients may want to focus entirely on one aspect of ESG focus.  Others may want to weight the criteria according to a specific algorithm, i.e. environmental first, then social, and then governance.

 

  • Impact Directives:  Impact differs from ESG in that it seeks to proactively support a specific outcome.  An example would be to support a geographic location by investing in small- and micro-cap companies located there.

 

  • Risk Minimization: Almost all investors can benefit from some form of index customization.  For instance, if a family has a large real estate business, they should not have further exposure to the real estate industry in a stock index.  On the other side, sectors and industries that have low correlation to real estate could be overweighted, if timely.

 

  • Other Client-Specific Criteria:  Typically, ultra-high net worth clients will have existing investments with different characteristics and exposures.  A customized impact index can complement those in multiple ways depending on the client’s objectives.