Insights & News

June 2016
Investment Strategy

New Funds and Apps Make Investing in Values that Much Easier



With elections coming up, many of us are looking for candidates who will best promote our values. You can also vote with your pocketbook.

As a consumer and investor, you have the power to invest in companies whose actions reflect your values. Collectively, this power can create a tremendous shift in companies mores, resulting in positive change globally.

Funds invested in sustainable, responsible and impact investing practices grew 900 percent between 1995 and 2014 and now account for about one of every six dollars in professionally managed investment portfolios.

Women are leading the way in socially responsible investing; they are nearly twice as likely as males to consider the impact of investment decisions. According to Morgan Stanley, just over 75 percent of women expressed an interest in sustainable investing, compared to 62 percent of men. Furthermore, as more wealth is transferring into the hands of women, they realize their money has impact in the world and are choosing to use it in ways that align with their values.

You can make an impact in several ways.

Be purposeful about where you invest. The oldest and most common types of investments are socially responsible investment (SRI) funds, which screen out companies based on things like avoiding weapons, tobacco, gambling, alcohol or other perceived negatives. Most fund companies offer at least one such option and some offer such specific mandates as environmental impact or human rights. Calvert Investments, for example, has been one of the pioneers in socially responsible investing (calvert.com).

Another option, sustainable investing screens for companies with positive environmental, social and governance (ESG) profiles. Fund companies such as ESG Managers, esgmanagers.com/sustainable_investing/ overview, specialize in this.

The most recent trend, impact investing, involves companies that create positive change through their products or services. Pax World, another pioneer, has begun to narrow in on impact investing. The company website has an excellent summary of the evolution in this area, paxworld. com/about/sustainable-investing.

The nonprofit Forum for Sustainable and Responsible Investment (US SIF) is a respected source for such areas as advancing women’s causes, climate change and addressing corporate money in politics. And the website, ussif.org, has a mutual funds screen that rates various value areas.

New apps and tools help investors concentrate on specific areas of impact and help consumers make informed choices. Apps like GoodGuide mean you can scan a product barcode with your phone to receive ratings for health and environmental and social responsibility. While many products aren’t yet rated, it is a great start. The next time you pull out your wallet or investment statement, consider the impact you want to make.

This article was first published in the JUNE/JULY 2016 issue of HerMind Magazine. To see the original article go to HerMindMagazine.com.


IMPORTANT DISCLOSURE INFORMATION
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by FAI Wealth Management), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from FAI Wealth Management. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. FAI Wealth Management is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of FAI Wealth Management's current written disclosure statement discussing our advisory services and fees is available for review upon request.


Sign Up for FAI Insights & News

and get it delivered to your inbox!