Once a niche corner of the investing landscape, the idea of aligning personal values with investment portfolios has gone mainstream. Vision Investing describes the wide range of investment strategies and services we offer that seek to help investors align personal values with investment portfolios. Vision Investing can encompass a broad range of personal beliefs, ranging from social and environmental to faith-based values.
|Renewable energy, waste management, water use, and climate change|
|Human capital, community relations, labor standards, and diversity and inclusion|
|Accounting, board structure, executive compensation, business ethics, and fraud|
Bruce, Andrew and Brad have refreshed their multigenerational practice around the social values of their clients. Bradley Sabin, 31, is the youngest of the three and one of the first financial advisors in the U.S. to receive a CSRIC™ credential – for chartered socially responsible investing counselors.
The Sabins have started asking their clients about their values and offering relevant new investments or a realignment of existing portfolios based on their investment objectives and financial solutions. The response has been positive, Bradley says. “We’ve just seen their eyes light up when they know that we are going to be thinking of a deeper dive,” he says. “Common topics of discussion are climate change, tobacco and firearms.”
Millennials are often cited as the driving force behind sustainable investing, and the Sabins say their millennial clients are their most enthusiastic, as a group, for the firm’s new approach. But they say that their core group of clients in their 60s and 70s have also been eager to hear about it. “A lot of our older clients were very, very interested in this,” says Bruce Sabin.
All investing involves risk, including the possible loss of principal.
Social Impact Investing is a unit of Wells Fargo Investment Institute, Inc. (WFII). WFII is a registered investment adviser and wholly-owned subsidiary of Wells Fargo Bank, N.A., a bank affiliate of Wells Fargo & Company.
‘Sustainable’ or ‘Social Impact’ investing focuses on companies that demonstrate adherence to environmental, social and corporate governance (ESG) principles, among other values. There is no assurance that social impact investing can be an effective strategy under all market conditions or that a strategy’s holdings will exhibit positive or favorable ESG characteristics. Different investment styles tend to shift in and out of favor. In addition, an investment’s social policy could cause it to forgo opportunities to gain exposure to certain industries, companies, sectors or regions of the economy which could cause it to underperform similar portfolios that do not have a social policy. Risks associated with investing in ESG-related strategies can also include a lack of consistency in approach and a lack of transparency in manager methodologies. In addition, some ESG investments may be dependent on government tax incentives and subsidies and on political support for certain environmental technologies and companies. The ESG sector also may have challenges such as a limited number of issuers and liquidity in the market, including a robust secondary market. There are many factors to consider when choosing an investment portfolio and ESG data is only one component to potentially consider. Investors should not place undue reliance on ESG principles when selecting an investment.
The information contained herein constitutes general information and is not directed to, designed for, or individually tailored to, any particular investor or potential investor. It is not intended to be a client-specific suitability analysis or a recommendation to invest in any particular fund or investment strategy.
Pursuant to Missouri regulation, the provision of investment advice, products and management to Missouri clients based on environmental, social, governance (ESG) or other values-based nonfinancial factors requires certain disclosures and a written client consent. Consequently, investment advice relating to ESG-focused investment products and services, including those referenced above, will not be provided to Missouri residents unless the residents provide the applicable written consent.