Lead the Conversation

ESG investing is quickly moving to the forefront of the investment industry

conversation. Organizations like BlackRock, TIAA, Morgan Stanley, Morningstar, MSCI (1) and others have brightened the spotlight on ESG investing. Take the lead in starting an ESG conversation with your 401(k), 403(b) and 457 clients.

 

Sustainable, Responsible and Impact (SRI) Investing in the U.S. has grown to $8.7T(2) as of the end of 2016, almost twice the size of the entire 401(k) market(3). However, when it comes to retirement plans, employees typically have few or no ESG investment options to choose from. It is even less likely to find plans that offer ESG versions of the target portfolios that have become the leading investment solution for Americans investing for retirement(4). 

Impact Retirement - ESG focused portfolios provide employees covered by 401(k), 403(b) or 457 plans the same convenience and professional allocation as traditional target portfolios with the addition of an ESG lens.

DOL IB 2015-01 gives fiduciaries guidance on adding ESG investment options to their plans, acknowledging that ESG characteristics are not only tie-breakers but can be a positive economic factor in evaluating and selecting investments for a retirement plan.

Hundreds of studies and several meta studies have found positive connections between companies that exhibit strong ESG values and positive corporate financial performance, dispelling the myth that investors must give up performance to invest in SRI or ESG funds(5).  Two of these meta studies can be found under the Resources tab of this website. 

Call us to discuss how we can help you start a conversation with your employer sponsored retirement plan clients today.

1. BlackRock CEO Larry Fink's letter to CEO's, January 2018, TIAA publishes an annual study on sustainable investing, Morningstar began publishing sustainability ratings for funds in 2016, MSCI created a series of ESG indices in 2017, Morgan Stanley released it's sustainability report in 2015

2. Source: USSIF. Data from Report on US Sustainable, Responsible and Impact Investing Trends 2016

3. ASPPA, June 28 2017

4. TIAA - Second Annual Practice Management Study, Responsible Investment, 2015

5. Deutsche Asset & Wealth Management: ESG & Corporate Financial Performance: Mapping the global landscape, December 2015

Park and Elm Investment Advisers LLC is a registered investment adviser in the State of Indiana and Washington. The Adviser may not transact business in states where it is not appropriately registered, excluded or exempted from registration. Individualized responses to persons that involve either the effecting of transaction in securities, or the rendering of personalized investment advice for compensation, will not be made without registration or exemption. Park and Elm Investment Advisers LLC is doing business as ClearPoint Financial Partners.

For more information contact:

Mike Grimme

0425-633-0309

mgrimme@clearpointfp.com