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  • Writer's pictureClimate Alpha

Atlas Capital & Climate Alpha: A Future-Proof ETF for Global Investors

Against the backdrop of persistent inflation, currency volatility, accelerating de-dollarization, geopolitical disruptions and alarming climate change, global investors are seeking stable, asset- backed financial instruments as a hedge against global uncertainty.

Since late 2022, Atlas Capital Team Inc. (“Atlas”) and Climate Alpha have closely collaborated to apply Climate Alpha’s modeling of the financial impact of climate change to support Atlas in the construction of a novel, multi-asset ETF. This partnership represents the cutting edge of establishing a store of value capable of delivering long-term returns with low volatility.

The combination of Atlas and Climate Alpha’s contextual intelligence, climate modeling, data science and financial engineering capabilities delivers a low-risk, inflation-protected index whose baseline portfolio achieves steady returns with low volatility. The Atlas Index offers a valuable hedge against geopolitical, monetary and climate volatility. In its current phase, the Index holds long-only positions in large and highly liquid asset classes such as US Treasuries, gold, and North American REITs.

Applying Climate Alpha’s proprietary risk and resilience datasets and advanced machine learning techniques to the $1.5T universe of listed US and Canadian public REITs, Atlas constructs a dynamic model portfolio of REITs with the lowest vulnerability to climate risks such as flood, storm, heat, fire, drought or sea level rise. The launch of an ETF tracking the Index and of a Security Token (the “USG”) symbiotically linked to the ETF will make the Atlas strategy accessible through offshore exchanges and give investors exposure with full transparency and minimal counterparty risk. Beyond real assets, the Atlas ETF will gradually incorporate sectors and tickers in public markets benefiting from climate-related trends on a higher-frequency basis.

In addition to the crucial financial hedge the Atlas Index provides, it will also deliver real-world benefits in a turbulent future. Taking advantage of an ETF’s permitted 15% allocation to illiquid assets, the Atlas Resilient Communities (ARC) fund of funds structure will allocate capital to vehicles investing climate-resilient geographies identified by Climate Alpha’s forecasts, focusing on assets spanning land, agriculture, and residential, commercial, and industrial real estate.


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