Invest In Your Future
ESG focused portfolios allow employees to align their retirement assets with their values and gives their portfolios the information advantage of considering environmental, social and governance factors in their management.
Impact RetirementTM ESG focused target portfolios are a composite of ESG focused mutual funds. The allocation to each respective fund in the portfolio is based upon an age appropriate risk (target-date) or target-risk level. Target-date portfolios change over time, getting more conservative as the vintage ages. This automatic de-risking of the portfolio over time is referred to as the “glide path.” In contrast, target-risk portfolios attempt to maintain a static risk level over time.
Many retirement plan record keepers have technology that allows for the creation of custom target portfolios. By seeding this custom portfolio technology with a line up of all ESG focused funds, we can create Impact Retirement portfolios on most record keeping platforms. Adding Impact Retirement ESG focused portfolios to a plan can be as easy as adding a few new funds to a plan's investment menu and turning on the custom model capabilities. No plan transition and no black-out required!
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Fund Evaluation: traditional and ESG factors
Managers are evaluated on a regular basis for ESG factors, performance, risk and management factors. Funds that fail to meet the evaluation criterial documented in the Investment Policy Statement (IPS) will either be placed on "watch" or replaced depending on the deficiencies of the particular fund.
Sample portfolio allocation for illustrative purposes and does not reflect an actual portfolio allocation.
Traditional Factors Considered
Manager style and market cap consistency
Performance over short, mid and longer term
Risk and risk adjusted performance
Overall management firm strength
ESG Factors Considered
Morningstar Sustainability Rating
Objectionable lines of business
Controversial business practices
ESG focus in prospectus
UN PRI (Principles for Responsible Investing) signatory
Votes proxies in line with ESG values
Deutsche Asset & Wealth Management, "ESG & Corporate Financial Performance: Mapping the global landscape", Dec 2015