Responsible Investing is on the rise and it isn’t simply about excluding “sin” stocks. It’s about investing to achieve both a positive impact on society and favorable investment results.
It turns out that embracing environmental, social and governance (ESG) best practices is good business. And investors are discovering that it’s possible to earn competitive returns with portfolios that reflect their values.
In recent years, interest in issues such as climate change, water conservation, workplace diversity and human rights has intensified, moving Responsible Investing into the mainstream. More than $8.7 trillion was invested using Responsible Investing criteria in 2016 – a 33% increase since 2014. Our firm has affiliated with Calvert Research and Management to offer Socially Responsible Investing to our clientele. Calvert is a recognized and celebrated leader in this area.
We offer Calvert investment solutions for conservative, moderate and aggressive investors. We over-lay these strategies with our tactical-tilt strategy to enhance returns and reduce risk.
Calvert’s holistic approach integrates fundamental research, ESG analysis and direct company engagement. The result? Portfolios with the power to influence positive change – without losing focus on performance. For example: Calvert US Large-Cap Core Responsible Index Fund achieved a 15.82% average annual return for the ten-year period ending 03/31/2019 and the Russell 1000 Index was at 16.04%. This is a very good comparison.
Responsible Investing doesn’t mean giving up on investment returns. Research suggests that companies with high scores for their ESG commitments tend to have better management, higher expected growth and lower cost of capital – which may translate into better financial results for investors.
For example, initiatives to reduce and reuse waste, improve energy efficiency or conserve natural resources can produce savings that flow to a company’s bottom line. Likewise, companies with strong corporate governance may avoid costly workforce problems or regulatory sanctions. When you join us and Calvert investments, you’re joining a movement to influence positive change through the power of your investments.
About Calvert Research and Management
Calvert Research and Management is a leader in Responsible Investing, with approximately $11.2 billion of mutual fund and separate account assets under management as of December 31, 2017. The company traces its roots to Calvert Investments, which was founded in 1976 and was the first to launch a socially responsible mutual fund that avoided investment in companies that did business in apartheid-era South Africa. Today, the Calvert Funds are one of the largest and most diversified families of responsibly invested strategies, encompassing actively and passively managed strategies, U.S. and international equity strategies, fixed-income strategies and asset allocation strategies.
Montgomery Taylor, CPA, CFP
Chief Executive Officer
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