Sustainable Energy

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.

Vintage

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

  • Manager tenure

  • Expenses

  • Overall management firm strength

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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