There is a growing trend in investing — sustainable, responsible and impact investing (SRI)— that blends personal values and principles with investment choices.
Aligning investments with values.
Sustainable investors consciously choose to invest in companies that contribute to advancements in environmental, social and corporate governance (ESG) practices, e.g., clean tech, labor and human rights, anti-corruption policies.
Sustainable investing has grown 33 percent in the U.S. since 2014. That equates to $8.72 trillion. SRI now accounts for more than one out of every five dollars under professional management, according to the latest SRI trends report, published by The Forum for Sustainable and Responsible Investment Foundation (US SIF).
Sustainable investing performs in line with traditional investing.
Research also reveals a positive correlation between SRI strategies and corporate financial performance. A 2017 study conducted by Nuveen TIAA Investments found that investing in SRI strategies did not lead to a decrease in performance or an increase in risk.
The MSCI KLD 400 Social Index, one of the first socially responsible investing indexes, has performed right in line with the S&P 500.
In fact, during the February 2018 market downturn, SRI funds actually outperformed the broad market, according to Morningstar investment research company.
Wondering what impact your investments are making?
Ask your financial advisor for a portfolio review to see if your current investments include SRI companies.
Learn more about SRI at ussif.org, or speak with a financial advisor.
We offer free portfolio reviews at no cost, no obligation. We’d be happy to take a look at your current portfolio and offer a second opinion to ensure you’re getting the most out of your investments.
Connect with an RCB Bank Trust Wealth Advisor in your area.