PHILADELPHIA--(BUSINESS WIRE)--Forefront Analytics, LLC and Threshold Group, LLC (http://thresholdgroup.com) announce the rollout of the Forefront Impact Resiliency Strategy, a groundbreaking investment solution designed to provide investors concerned about Environmental, Social and Governance (ESG) issues with a sophisticated tool to help navigate turbulent markets.
Working with Threshold Group, Forefront Analytics (http://forefrontanalytics.com) designed and developed this new strategy that is intended to diversify exposure to traditional stocks and bonds in a similar fashion to Threshold Group’s Liquid Multi Strategy (LMS) both of which attempt to capture equity market upside while attenuating the potential for significant drawdowns. The firms believe there is no directly comparable strategy available in the market.
The Resiliency Strategy is a separate managed account comprised of a highly diversified mix of mutual funds and exchange traded funds (ETFs) that meet ESG standards. The holdings are constantly monitored and traded according to multiple risk factors.
Forefront Analytics is led by founder Christopher Geczy, Ph.D. In addition to his work at Forefront, Dr. Geczy also serves on the faculty in the Finance Department at The Wharton School and as academic director of Wharton’s Jacobs Levy Equity Management Center for Quantitative Financial Research and the Wharton Wealth Management Initiative.
“The Forefront Impact Resiliency Strategy, our initial collaboration with Dr. Geczy, is another innovative strategy resulting from Threshold Group’s commitment to intensive research and development to address the risk/return needs of clients who have embraced impact investing,” explains Ron Albahary, CFA, Chief Investment Officer of Threshold Group. “When we presented Chris with the idea to build this solution, he and the rest of the Forefront Analytics team saw it as an exciting challenge that would build on Chris’ decade of academic experience studying ESG factors and their impact on investment outcomes. The goal of our collaboration was to provide a liquid and transparent strategy that could serve as ballast in client portfolios seeking to target some upside and mitigate downside risk while adhering to environmental-social-governance standards.”
Balancing risks in impact investing
“We believe bringing sophisticated hedge-fund like risk management strategies to impact investing is a necessary and exciting next step,” says Stephanie Cohn Rupp, Managing Director of Impact Investing at Threshold Group. “The Forefront Impact Resiliency Strategy reinforces our belief that impact investors do not need to sacrifice compelling risk-adjusted market returns, and it should enable more investors to start aligning their portfolios with their desire to generate positive environmental and social change with confidence.”
Creating performance asymmetry
Forefront Impact Resiliency Strategy is intended to play an integral role within Threshold’s client portfolios designed to generate greater long-term wealth by creating asymmetry in the degree of gains over losses. The strategy takes the form of a fund mix designed to maximize expected return at targeted risk levels. It takes the logic of risk diversification and risk weighting, and applies it to return generating risk factors which makes them accessible within the universe of ESG oriented mutual funds and exchange-traded funds (ETFs).
“Our early academic research on impact investing concluded that some of the biggest investment challenges faced by mission-oriented investors were limitations on diversification provided by what was available in the marketplace,” says Dr. Geczy. “We believe the Impact Resiliency Strategy addresses those challenges and helps impact investors achieve a double bottom line goal of impact and investment diversification.”
About Forefront Analytics, LLC
Forefront Analytics, LLC, West Conshohocken, Pa., an SEC Registered Investment Adviser, is a quantitative investment management firm led by Christopher Geczy, Ph.D., who has significant research experience in impact/ mission/ ESG investment strategies. One of the firm’s key beliefs is that investors may benefit from diversifying their risk beyond traditional stocks and bonds and into granular “factors” which drive investment performance. In addition to his work at Forefront Analytics, Dr. Geczy has served on the Finance Department Faculty at The Wharton School for nearly 18 years and is the Academic Director of the Jacobs Levy Equity Management Center for Quantitative Financial Research and the Wharton Wealth Management Initiative.
About Threshold Group
©2016, Threshold Group, LLC, is a family-owned wealth management firm, dedicated exclusively to serving families, individuals and family foundations. It serves clients in more than 35 states. The company provides integrated investment guidance, financial planning, legacy planning and family office services – all aimed at helping clients achieve their missions and priorities. Threshold Group is a Registered Investment Advisor with approximately $2.8 billion of assets under management (AUM) and roughly $1 billion designated to impact investments, as of December 31, 2015. Offices are in Seattle, Gig Harbor, Wash. and Philadelphia. Threshold Group may be reached at 888-252-3889.
Threshold Group was founded, and continues to be owned, by the Russell family, which created the global investment services firm known today as Russell Investments. The Russell firm, commonly recognized for its stock indices, built its core competency based on decades of fiercely independent evaluation of investment managers.
The information provided herein is for information purposes only and does not constitute financial, investment, tax or legal advice and it is not to be consider a recommendation to participate in any particular trading strategy, or deemed to be an offer or sale of any investment product, and it should not be relied as such. All investments are subject to risks. Past performance is not an indicator of future results.
Investment advice can be provided only after the delivery of Threshold Group's Brochure and Brochure Supplement (Form ADV Part 2A & B) and once a properly executed investment advisory agreement has been entered into by the client and Threshold Group.
Forefront is an SEC-registered investment adviser, additional information about Forefront can be found in the Firm’s Form ADV disclosure reports, the most recent versions of which can be found on the SEC’s Investment Adviser Public Disclosure website at www.adviserinfo.sec.gov.
Threshold Group and Forefront Analytics are separate and unaffiliated and are not responsible for each other’s policies, products or services.