Sustainable Investments
What is Sustainable Investing?
While sustainable investing has been in practice for decades, interest in this area has grown dramatically over the past several years as donors have been seeking strategies to enhance performance and improve lives. One of the lenses through which one can view sustainable investing is examining the Environmental, Social, and Governance (ESG) practices of companies.
Sustainable Investing Options
Our investment advisors manage a variety of traditional and sustainable investing strategies for our donor-advised funds (DAFs). The following are examples of the types of sustainable investment options that are available*:
ESG Integrated Portfolios
Pursue investments with high ESG ratings in a diversified portfolio
Many donors are interested in proactive, positive ESG strategies, while also seeing DAF investment returns consistent with standard benchmarks. ESG Integrated Portfolios are diversified across asset classes and focused on securities and funds with high ESG ratings and proactive ESG strategies. These portfolios span a range for risk profiles, serve as guideposts for custom DAF portfolios.
Exclusionary Screening
Avoid investments which can negatively impact the environment or society
Examples include fossil fuels, alcohol, firearms, and gambling
Thematic Investing
Support issues that are important to you while also generating investment returns
Examples include renewable energy, energy efficiency, water, inclusive finance, education, and health
Impact Investing
Produce tangible environmental or social impact while pursuing financial returns
Examples include conservation-based project financing, micro-finance to minority-owned small businesses, and social impact bonds
Recognizing that clients have a variety of objectives and needs in pursuing a sustainable investing strategy, we take a customized approach to constructing and managing a client’s portfolio. This may involve mixing traditional and sustainable investment options, implementation approaches to minimize taxes, and other client-specific adjustments.
For more information on how Fiduciary Trust Charitable can help you achieve your philanthropic goals, please contact Todd Eckler at 617-292-6766 or teckler@fiduciary-trust.com.
* Availability of investment options may vary by investment advisor
The opinions expressed on this page are as of the date issued and subject to change at any time. Nothing contained herein is intended to constitute investment, legal, tax or accounting advice, and clients should discuss any proposed arrangement or transaction with their investment, legal or tax advisers.