Sphere and Reflection Asset Management Launch SPFFX, the First Index Fund to Get Fossil Fuels out of Any 401(k) Plan
The competitively-priced fund invests in the top 500 US companies minus ~40 fossil fuel companies, with its index historically outperforming the SPDR S&P 500 ETF
WALNUT, Calif.–(BUSINESS WIRE)–California-based startup Sphere announced today that it has partnered with SEC-registered investment advisory firm Reflection Asset Management (RAM) to launch the Sphere 500 Fossil-Free Index Fund (SPFFX), a mutual fund designed to remove the barriers that have kept fossil-free options out of 401(k) retirement plans until now.
The fund is the first U.S.-based option of its kind and launches as over 80 percent of Americans report seeing climate change as a threat, according to Pew Research, and yet 99 percent of Americans with 401(k) retirement savings are not invested in climate funds, or funds that avoid owning fossil fuel companies. While climate change is a topic that individuals often feel helpless to solve, SPFFX offers a concrete way for investors to make an impact, without giving up quality of life or expected returns on retirement savings.
The fund is available on brokerage platforms, including Interactive Brokers, with Vanguard and Vestwell in the process of onboarding, and on 401(k) platforms such as Matrix and Mid Atlantic Capital Group. Additional platforms are being added. Financial firms Green Retirement and Carbon Collective plan to offer the fund to 401(k) clients.
SPFFX has already found traction beyond its target market of 401(k)s, with launching investments from Eliot Horowitz, co-founder of tech unicorn MongoDB, and Clay Rockefeller, great-great-grandson of John D. Rockefeller, the first US billionaire oil baron, whose descendants, through the Rockefeller Foundation, have committed to divest its $5 Bn endowment from fossil fuel interests, a major bellwether for the fossil fuel divestment movement.
“We could not be more thrilled to be partnering with the team at RAM to launch this fund,” said Sphere founder and CEO Alex Wright-Gladstein. “By offering this product, RAM is demonstrating their commitment to making a difference on climate change by making a values-aligned investment product available not only to wealthy investors, but also to everyday people in their retirement plans.”
The Sphere 500 Fossil-Free Index Fund (SPFFX) tracks the Sphere 500 Fossil-Free Index (SPFFXI), which is comprised of the largest 500 US companies by market capitalization, minus approximately forty companies whose primary lines of business are in the fossil fuel industry, as defined by the non-profit As You Sow on their website fossilfreefunds.org.
The SPFFXI index was calculated by independent third-party index calculation agent BITA. The 40 or so companies that are excluded make up about five percent of the total market capitalization of the top 500 group.
Sphere is a registered public benefit corporation that is amplifying a social movement to get 401(k) money out of fossil fuel companies. The company helps employees, employers, and investors take a stand on climate change by providing financial products that are designed for 401(k) plans, and allows HR managers and their advisors to maintain their commitment to fiduciary duty without having to compromise on climate. Learn more at www.oursphere.org. For more information reach out to email@example.com.
About Reflection Asset Management
Reflection Asset Management is an SEC registered investment advisor specializing in creating ESG strategies and Registered Funds that allow asset owners to align their values with their portfolios. Learn more at www.reflectionam.com. For more information reach out to firstname.lastname@example.org.
Learn more: https://www.reflectionam.com/sphere
Before investing in the Sphere 500 Fossil-Free Index Fund (“SPFFX”), consider the index’s investment objectives, risks, charges and expenses. To obtain a prospectus or summary prospectus which contains this and other information, please visit https://www.reflectionam.com/sphere, call 844-2-SPHERE, or talk to your financial advisor. Read the prospectus carefully before investing. The Sphere 500 Fossil Free Index tracks the S&P 500 and excludes the ~40 fossil fuel companies that are in the top 500 list. The Sphere 500 Fossil Free Index will not invest in companies whose main lines of business include producing, distributing, or refining fossil fuels, holding reserves of fossil fuels, utilities that are primarily fossil fuel-powered, and producers of equipment for any of the above. However, the fund may invest in companies that use fossil fuel as a part of their business or have used fossil fuels in the past. The performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Index returns do not reflect the effects of fees or expenses. It is not possible to invest directly in an index. Current performance may be lower or higher than the performance data quoted. For the most recent month-end performance, please call 844-2-SPHERE or visit the Fund’s website at https://www.reflectionam.com/sphere. Index performance is discussed for illustrative purposes only as a benchmark for each strategy’s performance and does not predict or depict performance of that strategy. While index comparisons may be useful to provide a benchmark for a strategy’s performance, it must be noted that investments are not limited to the investments comprising the indices. Each of the strategy benchmark indices are unmanaged and cannot be purchased directly by investors. Past performance does not guarantee future results. No portion of the content should be considered a solicitation to buy or an offer to sell shares of the fund in any jurisdiction where the solicitation or offer would be deemed unlawful under the securities laws of such jurisdiction. The Sphere 500 Fossil-Free Index Fund is distributed by Vigilant Distributors, LLC, member of FINRA and SIPC. NOT FDIC INSURED NOT BANK GUARANTEED MAY LOSE VALUE