Make a Difference

Do businesses that address global energy and pollution problems, treat their

employees and partners fairly, and improve the standard of living around the world have

the potential for financial success?

A growing number of investment professionals and studies are supporting this idea and a growing number of investors are choosing to align their investments with their values. Impact Retirement ESG focused portfolios offer employees professional allocation and diversification with the addition of an ESG (environmental, social, governance) lens.

Examples of companies with strong ESG characteristics

Tesla has become a leader in the mass marketing of electric cars. Their products address global energy resource issues and carbon pollution. Add to that a stock price that has gone from $34/share to $343/share in the five years ending 2/28/2018, for a total return of 884% and you have a great example of an ESG investment that has produced strong investment returns. (1)

Under the leadership of Tim Cook, Apple has become a leader in fostering a company with a social conscience, creating an inclusive workplace for employees and launching products that have helped to break down the barriers to information around the world. At the same time, Apple continues to be one of the best performing stocks in history. (2)

Target-date or target-risk?

Both types of target portfolios can provide investors instant diversification across U.S. stocks, fixed income and foreign securities in a single choice. Target-date portfolios adjust their allocation over time, starting off more aggressive for younger investors and get more conservative as the investor approaches retirement age. Target-risk portfolios allow the investor to select a risk level that meets their unique needs. Target-date and target-risk options make it easy for retirement plan participants to invest assets for their retirement in a diversified portfolio.

Sample portfolio allocation for illustrative purposes and does not reflect an actual portfolio allocation.

Choosing your target-date (vintage) or target-risk level:

For target-date options, the vintage is the year tied to the name of the portfolio. Investors typically select the vintage that most closely aligns with the year they will turn sixty-five. For example, someone 30 years of age in the year 2015 will turn sixty-five in the year 2050, therefore would select the "2050” target-date portfolio. Investors selecting target-risk options would consider their unique risk tolerance and choose a risk level that matches. Target-risk options allow for a more tailored portfolio, but also require periodic assessment of goals, risk tolerance and time until retirement.

What are the underlying investments?

Impact Retirement – custom ESG target portfolios are made up of several managers, each focusing on a specific asset class. The underlying managers are scored on environmental, social and governance factors, as well as performance, risk, management and expenses. Funds selected are re-evaluated for performance and ESG factors on a periodic basis and changes are made to the line-up as needed.

1. Morningstar performance data, TSLA 2/18/13 to 2/18/18

2. Kiplinger, "The 50 Best Stocks of All Time", January 16, 2018

 

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