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 focus1.
At The Wealth Consulting Group, we are hearing from many clients that they prefer to invest in companies that are making a positive difference in the world. We believe that our High Impact Investment portfolios support these objectives. We help clients set and implement clear goals aligned with their needs, goals and values. 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.
Data as of 6/30/2021
The MSCI KLD 400 Social Index has outperformed the S&P 500 Index by 0.53% annualized from 5/01/90 to 6/30/21. The MSCI EAFE ESG Leaders Index has outperformed the MSCI EAFE Index by 0.57% annualized from 10/1/07 to 6/30/21. The MSCI Emerging Markets ESG Leaders Index has outperformed the MSCI Emerging Markets Index by 2.45% annualized from 6/6/13 to 6/30/21. Comparable returns since index inception are shown gross, which includes dividend reinvestment without a reduction from tax.
As of 6/30/21, the returns for the MSCI KLD 400 Social Index were: 1 year: 42.22%, 3 year: 19.97%, 5 year: 18.56%, 10 year: 15.13% and Since Inception (5/1/90): 11.37% annualized. The returns for the S&P 500 Index were: 1 year: 40.79%, 3 year: 18.64%, 5 year: 17.64%, 10 year: 14.83% and Since MSCI KLD 400 Social Index
Inception (5/1/90): 10.85% annualized. The returns for the MSCI EAFE ESG Leaders Index were: 1 year: 30.67%, 3 year: 10.02%, 5 year: 10.89%, 10 year: 7.14% and Since Inception (10/1/07): 7.02% annualized. The returns for the MSCI EAFE Index were: 1 year: 32.92%, 3 year: 8.77%, 5 year: 10.79%, 10 year: 6.38% and Since MSCI EAFE ESG Leaders Inception (10/1/07): 6.29% annualized. The returns for the MSCI Emerging Markets ESG Leaders Index were: 1 year: 42.00%, 3 year: 13.64%, 5 year: 14.66%, and Since Inception (6/6/13): 9.52% annualized. The returns for the MSCI Emerging Markets Index were: 1 year: 41.36%, 3 year: 11.65%, 5 year: 13.42% and Since MSCI Emerging Markets ESG Leaders Inception (6/6/13): 7.07% annualized.
Past performance is no guarantee of future results. Index performance is not necessarily representative of fund performance.
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.
There is no assurance that the techniques and strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. No strategy assures success or protects against loss.
Additional information from our investment research partners
For more information, feel free to download a copy of our High Impact Portfolio brochure!
WCG Wealth Advisors, The Wealth Consulting Group and LPL Financial are not affiliated with the above named entities.