AssetBook News

With Socially Responsible Investing (SRI) continuing to gain popularity, offering SRI within your portfolios will meet the demands of investors looking to ‘do good’ for others. Now, as COVID-19 continues to change our values, socially responsible investing is helping to address the inequities in our society. Throughout the last decade, socially responsible investing has grown and continues to impact Wall Street as sustainable funds have seen record inflows this year (2020).

Advisors are often at the center of coaching their clients on the benefits of SRI and are well aware of the qualifications the SRI or SRI portfolio must meet: sustainability over time, profitable for investors, and that the companies represented continue to exist. The main goals of any SRI portfolio are to make a social impact and make a profit for the investor.

Creating an SRI portfolio through scoring of each individual SRI additionally requires the following:

  • The represented companies must not put themselves at risk of environmental or social problems that could arise from lawsuits, public issues, or harm or death of any life.
  • The ecological and business ethics of the companies represented are considered and must affect real change that makes society better.

These factors must always be in consideration, and if not met, may cause investors to liquidate the SRI, leaving the market value of the portfolio to decline. In addition to selecting SRIs for clients, the following features are beneficial to your clients:

  • Automated portfolio construction, monitoring and reporting.
  • Tax optimization designed to support client needs, including targeted gains and losses.
  • Dollar-based investing with inclusion for fractional share purchases.
  • Customization of client inputs including time horizon and risk tolerance.
  • Goal-based financial planning features including retirement, education, or wealth transfer.

Our Pulse platform makes scoring SRIs and creating SRI portfolios easy for you and transparent to your clients. Contact us to find out more.

Additional Resource:

The Morningstar Sustainable Investing Handbook