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High Impact 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 making a positive impact on society and the environment.

What is High Impact Investing?

High impact 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 High Impact 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.

High Impact ESG Performance 

"High sustainability companies significantly outperform their counterparts over the long-term, both in terms of stock market and accounting performance."1

1 “The Impact of a Corporate Culture of Sustain-ability on Corporate Behavior and Performance.” Harvard Business School, R. Eccles, I. Ioannou, G. Serafeim, 25 November, 2011/2012

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

2 Sustainable Signals: The Individual Investor Perspective, Morgan Stanley Institute for Sustainable Investing, February 2015.
The MSCI KLD 400 Social Index has outperformed the S&P 500 Index by 0.42% annualized from 5/01/90 to 12/31/17. The MSCI EAFE ESG Leaders Index has outperformed the MSCI EAFE Index by 0.41% annualized from 10/01/07 to 12/31/17. The MSCI Emerging Markets ESG Index has outperformed the MSCI Emerging Markets Index by 3.43% annualized from 6/06/13 to 12/31/17. Comparable returns since index inception are shown gross which includes dividend reinvestment without a reduction from tax.

As of 12/31/17, the returns for the MSCI KLD 400 Social Index were: 1 year: 21.61%, 3 year: 10.85%, 5 year: 15.90%, 10 year: 8.71% and Since Inception (05/01/90): 10.55% annualized. The returns for the S&P 500 Index were: 1 year: 21.83%, 3 year: 11.42%, 5 year: 15.80%, 10 year: 8.49% and Since MSCI KLD 400 Social Index Inception (05/01/90): 10.13% annualized. The returns for the MSCI EAFE ESG Leaders Index were: 1 year: 24.02%, 3 year: 8.44%, 5 year: 8.84% and Since Inception (10/01/07): 2.60% annualized. The returns for the MSCI EAFE Index were: 1 year: 25.62%, 3 year: 8.30%, 5 year: 8.39% and Since MSCI EAFE ESG Leaders Inception (10/01/07): 2.19% annualized. The returns for the MSCI Emerging Markets ESG Index were: 1 year: 40.90%, 3 year: 12.19%, and Since Inception (06/06/13): 9.93% annualized. The returns for the MSCI Emerging Markets Index were: 1 year: 37.75%, 3 year: 9.51% and Since MSCI Emerging Markets ESG Inception (06/06/13): 6.50% annualized.

Data as of 6/30/2018
Time period of illustrations vary due to ESG index inception dates prior to comparative indexes: MSCI KLD 400 Social 5/1/90; MSCI EAFE ESG 10/1/07; and MSCI Emerging Markets ESG 6/6/13. All MSCI indexes include aggregated, multisource histories prior to acquistion 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.
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.

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                                          University of Cambridge Investment Leaders Group

US SIF: 2016 Impact of Sustainable and Responsible Investment Report

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

Contact us to get a conversation started.

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