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Sustainable Investing 

Where Making Money - Meets Making a Difference 

Would you be interested in aligning your values with your investment portfolio if you did not have to sacrifice your investment performance objectives?

Have you ever looked at the companies you are invested in through your investment accounts and not liked the names of those companies, and felt that you wish you could do something different?

With our High Impact Portfolios you can aim to align your investments with your social and environmental values. Our High Impact Portfolios are comprised of stocks, bonds, mutual funds and ETF's that can serve as a cornerstone of a well balanced portfolio. Our High Impact Portfolios have a dual objective of providing competitive returns while pursuing a positive impact on society and the environment.

What is Sustainable Investing?

Sustainable investing is a strategy that strives to align your personal values with your investments while making a positive social and environmental impact. This can also be done for investment funds of Non-Profit organizations and Foundations to match and support their missions.

Sustainable or Socially Responsible Investing incorporates ESG analysis. ESG stands for Environmental, Social and Governance. 


Why Sustainable Investing?

Preference and Performance. There is a growing base of evidence that suggests companies that are environmentally sustainable, and have positive screens for corporate governance and diversity in executive leadership outperform funds that do not share this focus.1

At Bair Financial Planning, we are hearing from our clients that they prefer to invest in companies that are making a positive difference in the world. We, along with our partners at The Wealth Consulting Group (WCG), believe our High Impact Investment portfolios support all of these objectives. We help clients set and implement clear goals aligned with their needs, values, and objectives. We strive to be a leader in sustainable and responsible investing.


ESG Performance 

The charts below show ESG indices performance versus the performance of its comparable traditional indices.

Time period of illustrations vary due to ESG index inception dates prior to comparative indexes: MSCI KLD 400 Social Index 5/1/90; MSCI EAFE ESG Leaders Index 10/1/07; and MSCI Emerging Markets ESG Index 6/6/13. All MSCI indexes include aggregated, multisource histories prior to acquisition on 9/1/10.
All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. Investing in stock includes numerous specific risks including: the fluctuation of dividend, loss of principal, and potential liquidity of the investment in a falling market. Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price. Investing in mutual funds involves risk, including possible loss of principal. International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.

An Environmental, Social and Governance (ESG) fund’s policy could cause it to perform differently compared to funds that do not have such a policy. The application of social and environmental standards may affect a fund’s exposure to certain issuers, industries, sectors, and factors that may impact relative financial performance — positively or negatively — depending on whether such investments are in or out of favor.

Investing involves risks including possible loss of principal. No strategy assures success or protects against loss.
The MSCI KLD 400 Social Index is a capitalization weighted index of 400 US securities that provide exposure to companies with outstanding Environmental, Social and Governance (ESG) ratings and excludes companies whose products have negative social or environmental impacts.

The MSCI EAFE Index is a free float-adjustment market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada. The MSCI EAFE Index consists of the following developed country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the UK. The MSCI EAFE ESG Leader Index is a capitalization weighted index that provides exposure to companies with high Environmental, Social and Governance performance relative to their sector peers. MSCI EAFE ESG Leaders Index consist of large and mid cap companies across Developed Markets countries* around the world, including the US and Canada.

The MSCI EM (Emerging Markets) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of the emerging market countries of the Americas, Europe, the Middle East, Africa and Asia. The MSCI EM Index consist of the following emerging market country indices: Brazil, Chile, Colombia, Mexico, Peru, Czech Republic, Egypt, Greece, Hungry, Poland, Qatar, Russia, South Africa, Turkey, United Arab Emirates, China, India, Indonesia, Korea, Malaysia, Philippines, Taiwan, and Thailand.
The MSCI Emerging Markets ESG Leaders Index, is a capitalization weighted index that provides exposure to companies with high Environmental, Social, and Governance performance relative to their sector peers. MSCI EM ESG Leaders Index consists of large and mid cap companies across 27 Emerging Market countries.

High Impact Portfolios                                                                      WCG ESG eBook

  

View Our HIP Brochure                                                               View Our ESG eBook 





Additional information from our investment research partners


PAX World Investments                                                          TIAA Social Responsibility

Trillium Asset Management                                                   Community Capital Management

BlackRock Impact                                                                   UN Principles for Responsible Investment

Global Impact Investing Network                                         US SIF: Impact of Sustainable and Responsible Investment Report


Learn more about global investing for positive social and sustainable impact: The Wealth Consulting Group ESG eBook


For more information, feel free to download a copy of our High Impact Portfolio brochure!


WCG Wealth Advisors, The Wealth Consulting Group, Bair Financial Planning and LPL Financial are not affiliated with the above named entities.