What is your perspective on managing a sustainable portfolio? Featuring Gregori Volokhine, Fund Manager of MAM Sustain USA.

We sat down for a brief interview with Gregori Volokhine, who manages a sustainable fund. Here are his perspectives on managing a sustainable fund in today's world: "You have to protect yourself in the future but also be really realistic. Not everything is going to change. You don't know how fast change will come. Clean energy is part of any sustainable portfolio, but as an investor, you have to know that up to this point, it has not been profitable. To produce energy from wind is more expensive than to produce energy from coal, gas, or oil. You have to be sensitive to if the companies have sustainable business models and what their profitability is. That same problem occurs with solar energy. In a lot of states, its growth has been heavily helped by the government; the day that these aids granted from the government stop, you have to try to imagine the effect on the growth of the sector. Are people still going to put solar panels on their roofs without government incentive? What is certain as well is that a lot of industries are trying to be more sustainable. For example, with Kraft, more and more of these companies try to attract ESG investors. They think recycling is important, and they try to use wrappings, cans, and containers that are fully recyclable. With these kinds of actions, you start to see big companies that were not made to be investments for sustainable funds become attractive. One example is Ball corporation, the biggest aluminum can producer, and those are fully recyclable. So you're investing in steel, but sustainably. Even in technology, more and more companies are adopting new principles: for example, Hewlett Packard. Their printers are already 90 percent recyclable. Big companies are adopting more sustainable business models. If you start to look at huge companies such as Amazon and Google, they are trying to become more sustainable; Amazon bought 100,000 electric trucks. When you think of sustainability, you don't think of Amazon, but they are going to be CO2 emissions neutral in terms of their trucks, their buildings, and their packaging. It can be added to a sustainable portfolio. There are some traps in this industry. "Greenwashing" (pretending to be sustainable to lure investors) such as Exxon or British Petroleum is trying to show that in 30 years, they will be carbon neutral. What really does it mean when you extract oil? They get you by saying that their process itself is carbon neutral, but how it is used "that's not our problem." They are just saying that the producing process is carbon neutral and not use. You have to steer clear of that.

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