Values Based Investing

You Don’t Have to Choose Between Your Personal Values and Your Portfolio Value

So many financial professionals say the term, “We help you sleep better at night,” when they’re usually referring to your portfolio growth. But what if pursuing portfolio growth means owning or investing in companies whose business activities are opposed to your personal values?

At Hendershott Wealth Management, you don’t have to choose.

That’s why we offer values-based investing, also known as ESG (Environmental, Social, Governance) investments. This allows you to earn returns comparable to traditional portfolios without compromising your personal values:

  • E: Environmental: The Sustainability portfolios focused on environmentally responsible investing
  • S: Social: The Socially Responsible Investing (SRI) portfolios
  • G: Corporate Governance: Collective actions to ensure the company is acting in the best interest of shareholders

The ESG portfolios we offer clients are absolutely still expected to earn the returns of traditional investing. This is simply a way to build your investment portfolio in alignment with your personal values.

Why Choose ESG Investing?

Investors embrace ESG investing for various reasons. What matters more to you will determine how we can build your portfolio together.

Most importantly, ESG investing gives you more choice over which investments you hold (and which ones you don’t):

 

  • If your priorities are financial: Some investors may not focus on investing with personal values in mind, but they may do so anyway if they believe companies with higher ESG rates will deliver higher returns.
  • If your priorities are about impact: Others may not care whether ESG investing translates to higher or lower returns, as long as they can shun ‘bad’ companies and invest in ‘good’ ones.
  • Blended priorities: Most investors fall somewhere in between the first two choices. These investors want to earn solid returns, or at least not lose money, while investing in principled ways. This is where we typically guide clients interested in ESG investing.

Why Choose ESG Investing?

Investors embrace ESG investing for various reasons. What matters more to you will determine how we can build your portfolio together.

Most importantly, ESG investing gives you more choice over which investments you hold (and which ones you don’t):

 

  • If your priorities are financial: Some investors may not focus on investing with personal values in mind, but they may do so anyway if they believe companies with higher ESG rates will deliver higher returns.
  • If your priorities are about impact: Others may not care whether ESG investing translates to higher or lower returns, as long as they can shun ‘bad’ companies and invest in ‘good’ ones.
  • Blended priorities: Most investors fall somewhere in between the first two choices. These investors want to earn solid returns, or at least not lose money, while investing in principled ways. This is where we typically guide clients interested in ESG investing.

What Kinds of Values-Based Investments (ESGs) Are Available

We offer two different types of ESG Investments at Hendershott Wealth Management. All ESG opportunities are based on strategies that are evidence-based, broadly diversified, based on sound investment principles, and efficiently implemented. No matter which direction you choose, we commit to championing your values and objectives when building your portfolio together.

Sustainability Investing

We offer a science-based approach to Sustainability Investing. This provides effective investment solutions to clients who are highly conscious of the environmental impact of their investments.

  • The resulting strategies systematically evaluate sustainability metrics among companies across all major industries, excluding or penalizing companies that rank poorly while emphasizing companies with higher sustainability scores.
  • The primary focus is on the greenhouse gas emissions intensity of each company.
  • The consequence of this approach, at the industry level, is to shift capital away from companies with the worst scores toward companies with the best scores.
  • Using both proprietary and third-party data, we are able to include both current and potential emissions in the rankings system, which can significantly (if not completely) reduce your exposure to companies emitting greenhouse gases either today or in the future.

Socially Responsible Investing (SRI)

Our social investment funds seek to exclude individual companies that are involved in controversial activities while preserving investors’ ability to pursue higher expected returns across stock and bond markets.

  • Social screens include: abortions, abortive agents, contraceptives, adult entertainment, child labor, gambling, landmines and cluster bombs, the Republic of Sudan, stem cell research, tobacco or alcohol, and weapons.
  • The screens established by our funds have taken into account the US Conference of Catholic Bishops (USCCB) Socially Responsible Investment Guidelines, among other factors.
  • We evaluate companies on a historical basis. If any subsidiary fails one of our screens, that subsidiary and all other subsidiaries of the parent entity are excluded.

Are You Ready to Start Values-Based Investing (ESG)? Take the Next Step by Talking with Our Team Today.