5 Valley Square, Ste 110,

Blue Bell, PA 19422

Values Based Investing

August 14, 2018

“Investing For Good”

Investing with your values in mind is not a new concept. Yet, many investors are unaware that they can do so. Some would like their investments to align with their values and just don’t know where to turn. Still, others have never heard of Values-Based investing or just haven’t considered it before.

We work with many clients who care about their communities, the environment, social justice, and a better world for all of us. They often spend their time and donate their money to causes and issues important to them, many with far reaching impact and others closer to home. Whether it is reducing our carbon footprint or focusing on gender equity, we can all make a difference and in so doing become more responsible citizens. If you are interested in exploring how your investments can incorporate and reflect your values, please read on.  

There are essentially two types of Values-Based investing. The first and more traditional is Socially Responsible Investing (SRI). This type of investing utilizes negative screens that exclude certain corporations like those involved in gambling, tobacco, and firearms. Unfortunately, negative screens alone may exclude top-performing companies.

That brings us to the second type of Values-Based Investing known as Environmental, Social and Governance (ESG). This is where we see the inclusion of positive screens being utilized when choosing companies. For example, this could incorporate the stocks of companies that have strong sustainability measures and employment practices.

Corporations are now illustrating how they can create a positive influence on their employees and shareholders, which can cause a progressive ripple effect. Diversity, pay parity, allowing employees time off to help their favorite charity, incorporating healthy living incentives, and providing safe housing are all examples of how companies are creating a better workplace.

What values are important to you? Do you want those values to be reflected in your investments? Give us a call and we’ll be glad to help you build your own Values-Based portfolio.