Mission-Aligned Investing 102: Approach

Investment Manager Research | SRI and ESG June 12, 2018

By William Parker

Principal, Associate Director of Wealth Consulting, The Wealth Office®

Bill provides investment consulting services to nonprofit organizations, corporate executives, family trusts and other private investors. Bill services clients by providing advice and expertise on asset allocation, portfolio design, investment …

By Bradford Long

Partner, Deputy Chief Investment Officer

Brad joined Fiducient Advisors in 2012. He is chair of the firm’s Investment Committee and a member of the firm’s Discretionary Committee, Research Forum, Capital Markets Team and Mission-Aligned Investing …

In our first paper in this series we focused on defining mission-aligned investing. In our second installment, Mission-Aligned Investing: Approach we seek to answer the question: “Which mission-aligned approach is right for you?”

Mission-Aligned Investing Today

Whether the terminology is socially responsible, mission-aligned, sustainable or ESG, the goal remains to align the mission with financial capital. More today than ever, investors are passionate about a number of issues and are eager to incorporate their values within their investment portfolios. Building a long-term portfolio incorporating attractive risk and return characteristics while aligning with investors’ personal values is of ever-increasing desire.

The heightened awareness surrounding issues like climate change, the environment, religious beliefs, corporate concerns and workplace diversity make companies today popular targets for the growing number of mission-aligned investment strategies. In fact, the US SIF Foundation noted that more than $8.7 trillion1 was invested in sustainable, responsible and impact invested portfolios in the U.S. at the end of 2016, making up one-fifth of all assets under professional management. This marks a 33 percent increase since 2014.

With such growth, it is imperative that investors interested in mission-alignment focus their discussion on defining their mission prior to investing. A well-defined mission empowers investors to customize their portfolio to limit risk, maximize return and ultimately incorporate their values to their investment portfolios.

1US SIF Foundation: “Report on US Sustainable, Responsible and Impact Investing Trends 2016.”

The information contained herein is confidential and may not be disseminated or distributed to any other person without the prior approval of Fiducient Advisors. Any dissemination or distribution is strictly prohibited. Information has been obtained from a variety of sources believed to be reliable though not independently verified. Any forecast represent future expectations and actual returns, volatilities and correlations will differ from forecasts. This report does not represent a specific investment recommendation. Please consult with your advisor, attorney and accountant, as appropriate, regarding specific advice. Past performance does not indicate future performance and there is a possibility of a loss.

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