- Fixed Income
New Energy View
New Energy View was originally developed to track sustainable energy mutual funds and ETFs following my long-term interest in energy that originated with the first oil embargo in 1973. The first clean energy ETF was introduced in 2005 and NEV now tracks 14 separate securities with aggregate market cap of $500 million USD. With the advent of shale gas significantly affecting electricity markets we now also track the "crude/gas ratio", a measure of the relative energy cost of these fuels. When viewing the dramatic change in the relative price of these fuels it's no surprise that gas is now substituting to a greater extent then ever in the transportation sector.
Outside of sustainable energy, I am persuaded that the 3 factor equity investing approach identified by Fama and French is a winning strategy. As a result NEV presents index returns for a selection of US, EAFA, and Emerging Market indices. These provide a useful contrast to the returns from the sustainable energy sector. Additionally, with the availability of commodity index ETNs and ETFs many advisors now recommend including a small allocation of a portfolio to commodities. NEV tracks two of the largest of these securities
Fixed income investing is a key part of any portfolio. It reduces risk and provides return. After many years as an-after tax fixed income investor I developed several tools to help me select where and what on the current yield curve looks interesting. A unique feature of this analysis is it looks across different classes of fixed income choices, takes into account personal tax rates, assembles the "best" set of yields over time, and contrasts the after-tax yield curve with inflation expectations. NEV makes this tool available and also provides several of the underlying data sets.
Fixed income investing also brings inflation into focus when trying to obtain real, after-tax returns. To help analyze inflation expectations NEV makes available a set of US Treasury and TIPs returns and computes the resulting break-even inflation rate from the start of 2010. These data also imply a break-even inflation curve which is computed and made available daily.
Previously Mark built Henwood Energy into a market leader serving the global power industry before its sale in 2002 to form Global Energy Decisions (now part of ABB Ventyx). The company provided enterprise software for risk management, market data, web based analytics and mapping, and management consulting services. The company maintained offices in North America, Europe and Asia-Pacific After leaving Global, Mark formed Plexos Solutions LLC and served as its Chairman until its sale to Enengy Exemplar in August 2011. Mark also served as a board member and advisor to PowerLytix, LLC until April 2008 when it sold to Barclays Capital. He was also a director of the Independent Energy Producers Association (Calif) for seven years during the critical QF development period.
In addition to his activities at Henwood Associates, Mark manages a diversified portfolio of equities and fixed income. He is also active in promoting sustainable energy businesses in the Sacramento region through his involvement with CleanStart where he is co-founder and Vice Chairman and with start-ups (both directly and formerly as a venture partner in a Sacramento based venture capital firm).
He has a Bachelorís degree in Electric Engineering and Masterís degree in Mechanical Engineering from the University of California at Davis where he was a member of of Tau Beta Pi, the Engineering Honor Society. Mark is a California General Engineering Contractor and a resident of Sacramento, California.
Mark also obtains investment input from:
- Jack Johnson, CPA, RIA, CFP. Jack is the President of Sierra Financial Planning & Asset Management. Sierra assists clients with financial plans and assembling portfolios of diversified index funds. With over twenty years of experience in finance and as a DFA advisor, Jack has developed significant expertise in index based investing.