ClimateSmart Target Date Funds. A climate-focused compliment to your existing TDF
ClimateSmart enables 401(k) plans to diversify around climate risk and opportunity:
Divest from oil and the sectors of the stock market that depend on the status quo fossil fuel system.
Reinvest that share into rapidly innovating climate solutions.
Broadly hold the rest of the global stock market.
Balance stocks against a combination of green and government bonds.
Portfolio visualiser
Portfolio type:
Climate solutions and the low-carbon economy.
Portfolio type:
Climate solutions and the low-carbon economy.
See what makes us different.
In our intro call, we'll go over your goals, limitations, and what's working (or not) with your existing offering.
FAQ
Frequently asked questions
How can I get the ClimateSmart Target Date Funds in our 401(k) Plan?
There's two ways.
The easiest can have your company/organization hire us as your 401(k) advisor as a part of our Better Together 401(k) Program. If you do not already have an advisor for your plan, you will need one to add our funds, so you might as well get the other perks of working with us.
If you have an existing advisor, send them this page and have them book a call with us. We generally recommend these funds be added as a supplemental option to an existing target date fund series, as ClimateSmart is a distinct investment philosophy and caters to different investors than a traditional passively managed target date fund.
What's a CIT?
A Collective Investment Trust (or CIT) is a specific type of investment vehicle that is only used in the 401(k) industry. Carbon Collective has partnered with Benefit Trust to provide the first climate-focused target date funds for the 401(k) industry.
Why shouldn't it just replace our current TDF option?
Every person is unique and has their own views on what the future holds.
We didn't build ClimateSmart to be right for everyone. We built it for those who believe that climate change should be a core theme for long-term investors.
Therefore, we always advise adding the ClimateSmart CITs as an option within the existing plan, rather than replacing any existing funds with it.
How can I see performance of the ClimateSmart Target Date fund?
The ClimateSmart CITs are managed by Benefit Trust. To see the latest reported performance of each fund you can go to Benefit Trust's website and scroll down until you see Carbon Collective.
If you are an advisor and have access to financial terminal tools, you can also simply search "ClimateSmart" and they should pop up.
How does Carbon Collective make money from it's ClimateSmart TDF's?
Carbon Collective does not charge any fees directly for the ClimateSmart Target Date Funds, but only collects revenue on any underlying ETF that Carbon Collective manages.
I want my employer to add these. What should I do?
The best step is to chat with us first. There's a lot of nuances to 401(k) plan management. We find we can best set you up for success by first understanding more about your employer's situation and recommending potential strategies from there.
I want to learn more.
We'd love to chat. Scroll to the top of the page. You can use the button at the top to book a time to chat with us.
Our difference
01.
We're clear eyed.
We think financial security and climate health are directly linked.
02.
We're independent.
We're not owned by a big bank or Wall Street firm.
03.
We're real people.
You'll feel it the moment you meet us.