Clima Investments

Idea

Introduction

Sustainable investing has grown significantly. Sustainable Exchange Traded Funds (ETFs) have doubled in the last three years to a $250bn global market.

The problem is that there is no clear standard for what counts as a sustainable investment. A proliferation of investments claim to be “green” or score well on Environmental, Social and Governance (ESG) ratings but provide little evidence of impact. We focus on a singular problem – reducing carbon in our planet’s atmosphere. We believe this is the greatest challenge we face today, and investors have a role to play in the solution.

We created an equity benchmark comprised of the 152 listed companies that make the greatest impact to reducing carbon on our planet. We provide quantifiable carbon data on their impact using proprietary methodology. This benchmark is live, and up 47% YTD. We’re now raising funding to create an ETF tracking this index, so that any investor can channel funds towards the solutions for a low carbon future.

Substantial accomplishments to date

- Our first equity benchmark is live: Solactive is our benchmark administrator and the index is up over 47% YTD (as of October 13th);

- A great partner for our first UCITS ETF: HAN ETF will provide the white label solution for our 1st UCITS ETF. The two co-founders were keen on our strategy and proposed a JV agreement. With this partnership, we have HAN's full support and powerful distribution capabilities;

- Target date for first ETF launch is in December: We are on track to launch our first ETF on the companies that can decarbonise the planet. Targeting LSE open day December 10th;

- Incredible thought leaders supporting us: Jim Wiandt, founder of ETF.com, is a cornerstone investor and is also joining us as a NED. Suzanne Bishopric, a former Director of the United Nations Joint Staff Pension Fund, one of the first investment managers to invest in line with SDG17s, is also a supporter of Clima;

- Our platform is live: www.clima.investments allows us to share our methodology and vision with all individuals that care about climate change. The platform is part of our push & pull strategy to create organic demand for our product, but also to encourage a discussion on our quantifiable approach towards a low carbon economy;

- An incredible team: We have an unique team of passionate and committed professionals from a range of backgrounds.

Monetisation strategy

Clima will generate revenue through assets under management (AUM). We plan to launch our first ETF in December, structured as a UCITS, targeting the European market.

A UCITS ETF means that Clima's first ETF will conform to European Union regulations designed to protect the general public from unsuitable investment vehicles. UCITS stands for Undertakings for Collective Investment of Transferable Securities, and it's a regulation designed as a safety standard.

We are coming to market with a new approach for a thematic climate change ETF. We will launch the ETF charging a fee of 0.65% (i.e., the Total Expense Ratio, TER, of the ETF will be set at 65 basis points)

We are targeting £400m in assets under management within two years from launch. The strategy entails pursuing different segments of investors (from wealth managers to family offices, direct retail and large institutions).

Use of proceeds

The funds raised at this round will be used to pay for the operating expenses of creating, marketing and managing the ETF. Given that it is hard to predict the exact build up of AUM, Clima is taking a conservative view and raising funds that would allow for two years' of operations.

A fraction of the proceeds will also be used for operating expenses of the company itself, mainly salaries for our sustainability analysts, office space and cost to run the platform. The CEO and COO will not take any salary until the ETF breaks even.