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Listed Stock Investment Advice

The investment management business of GRI Equity involves risk management and asset allocation. Investors recognise the particular nature of GRI Equity's investment business and have agreed that they are suitably qualified to evaluate their participation in the business; they should be sophisticated investors. GRI Equity is not regulated and operates as a hedge fund. Each investment is subject to the finance and securities laws, as well as other laws, relevant to the jurisdiction in which the investment is made.

GRI Equity provides discretionary advice on portfolios of listed equities and investment in private businesses.

Our Approach

A portfolio of listed securities is held with a view to selecting for sustainable initiatives and holding for medium to long term. A selection of listed securities is here.

Performance benchmarks of our portfolios are shown here. Generally performance has matched markets. Performance of green tickers has been attractive.

We focus on long term holding and lower transaction costs. We seek to moderate risk by using GRI screens and diversification.

A superior return expectation is predicated on a value investment strategy combined with appropriate investment and exit timing over a long investment period.

The portfolio of listed companies is intended to be held for long term investment. It is not intended to buy and sell stocks over a time horizon of less than three months. Investment is made having due regard for price and timing.

Investment in listed companies generally relies on publicly available information.

Selection Method

Our screen is a positive, rather than negative, screen which looks for positive initiative. It focuses on evaluating management (alpha risk) through corporate behaviour including financial performance, cooperative ownership and operations, environmental contribution, community commitment and authentic media communications.

Investments are selected from a universe of pre-screened businesses which are part of a green index including the FTSE4Good, Domini Index and the Dow Jones Sustainability Index.  The initial investment portfolio is selected from the core portfolio. New investments are likely to come from the database of suitable listed target investments. 

An example working list screened from indicies is here. Other companies may be bought if they have a demonstrable sustainability initiative but are not in an index because of size, timing or other issue unrelated to irresponsible behaviour.

Opportunities are screened by the following criteria, of which targets should have at least three including demonstrable globally responsible initiative:

  • Activity must demonstrate globally responsible initiative.

  • Geography, sector, stage to reflect the Investment Policy of the investor group. Size: over US$ 1 million in sales.

  • Management team complete and competent.

  • Management systems and culture reflective of cooperative approach.

  • Pricing: PEG less than 1.

Our management is discretionary. However, we ensure that we have a clear understanding of our clients needs and communicate regularly.

The system used to manage the listed investments process includes:

  • Listed investment global database

  • Initial screen

  • Recommendation including strategic and financial review

  • Regular review

  • Sale and reinvestment as appropriate.

Listed holdings are reviewed monthly.

Administration and Expenses

Fees

The Advisor's fees are negotiated with each client. In general a fixed fee for establishment and a fixed annual management fee is agreeable.

All costs, except the costs of the administrator and custodian, are for the account of the advisor.

A performance fee is payable if the net return of investments exceeds 15% per annum, 20% of the excess return is payable to the advisor.

The fees of the Administrator and Custodian will be paid by the investors.

Arrangement, introduction or monitoring fees received by the advisor in respect of the making of an investment in or monitoring a Holding are for the account of the advisor.

Company Expenses

Expenses chargeable to investors include:

  • stamp, transfer and registration duties on investments,

  • all legal, accounting and other expenses in relation to dealings in investments,

  • bank charges,

  • fees of the advisor and

  • fees and costs of the Auditors, Administrator and Custodian.

Indemnities

The Advisor [and Administrator] and their employees and agents and members of the Board are entitled to be indemnified out of The Company's assets against all claims, actions and demands made against them in relation to The Company unless arising from bad faith, fraud or reckless or intentional wrongdoing.

The Advisor and others are excused liability for actions taken in good faith for a purpose that was reasonably believed to be in the best interest of The Company and when acting on professional advice where appropriate.

The terms of the agreement appointing the Custodian contains provisions indemnifying or limiting the liability of the Custodian.

Taxation

Investors should seek their own advice from professional tax advisors as to their tax status and the likely liabilities that may result from investment.

Governing Law

All investors, in subscribing, agree to be subject to arbitration at international law or at European Law in that order of priority in the event of any dispute. The Advisor is governed by Irish Law.

Subscription

The minimum initial subscription is 25,000.

Please contact Tom Butler to subscribe to our listed investment service or for more information.

 

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