Climate Risks Fuel Niche Market in Muni-Bond Funds
- Specially tailored accounts target flood, power projects
- Green impact performance has roughly tracked broader market
A vehicle drives through a flooded street during a storm in Whittier, California.
Photographer: Eric Thayer/BloombergThis article is for subscribers only.
US states and municipalities face a daunting challenge — and added costs — girding against weather that’s becoming more extreme. Now a niche market is springing up for investors who are looking to target their dollars toward projects aimed at mitigating those risks.
A growing cadre of investors is turning to separately managed accounts, or SMAs, working with advisers to design individualized portfolios that allow them put their money toward projects aimed at abating flooding and other potential hazards.