Lovins helping lead fund to back ‘socially responsible’ firms

LONGMONT — Change Finance, a majority women-run asset manager registered in Colorado, has launched an exchange-traded fund on the New York Stock Exchange that backs “socially responsible” companies.

Hunter Lovins, co-founder of Natural Capitalism Solutions based in Longmont, is one of four women executives heading Change Finance. Lovins is Change Finance’s executive vice president of impact. Donna Morton in Vancouver, Canada, is the chief executive. Dorrit Lowsen, based in Washington, D.C., is the chief operating officer, and Emily Applegate in Denver is vice president of operations. Andrew Rodriquez, based in Evergreen, is the president.

The fund, which opened trading last week with $1 million, is called the Change Finance Diversified Impact U.S. Large Cap Fossil Fuel Free ETF and is trading under the ticker symbol CHGX.

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The fund has an expense ratio of 0.75 percent and intends to spur changes in companies through shareholder advocacy. An expense ratio is an annual fee that funds or ETFs charge shareholders. It’s the percentage of assets deducted each fiscal year for fund expenses, including management and administrative fees, operating costs and other asset-based costs incurred by the fund.

CHGX’s index begins with the 1,000 largest U.S.-listed companies and applies a series of screens to exclude companies that are deemed to be “bad actors,” whether they operate in the oil, gas, coal or tobacco industries among others, or have engaged in any sort of business malpractice. The screens also whittle away companies that are polluters, have human or labor rights violations, produce pesticides or military weapons, engage in corrupt business practices or have exploitative relationships with labor and indigenous people, according to a company statement.

“After applying these screens, what you’re left with are good global corporate citizens — large cap, U.S.-based companies representing a range of sectors,” Lovins said. “We believe these are some of the best companies with long-term business models. They are conscientious regarding their impact on employees, supply chains, people and planet. They do what they can to reduce their carbon footprint, implement inclusive employment practices, harness the wisdom of women and seek to do good in the communities where they do business. They are what I want to own.”