By Scott Smith, CFA
Socially responsible investing is on the rise, and Gould Asset Management has a process to support clients who want to incorporate social considerations into their investment portfolios.
According to Sustainable Signals, a report from the Morgan Stanley Institute for Sustainable Investing, roughly 54% of individual investors say they plan to increase sustainable investments over the next year. And 77% of global investors are interested in investing in companies or funds that give them both a competitive market return and a positive impact on society or the environment.
If you want to invest and try to move the needle on a specific issue or cause, Gould Asset Management has considerable experience in socially responsible investing. Here’s a look at the process a registered investment advisor (RIA) can use to help you make a difference.
What Is Socially Responsible Investing?
Socially responsible investing, also known as ethical investing, green investing, sustainable investing, or values-based investing, focuses on selecting investments that aim to generate competitive long-term financial returns while positively impacting society. Once considered an unusual approach, it has evolved and grown in popularity among investors over the years.
This investment strategy is often implemented with a focus on three key factors: environmental, social, and governance (ESG).
- Environmental: Company’s policies and impact with respect to the environment
- Social: Company’s practices with employees, customers, and the community
- Governance: Company’s management structure, policies, and practices
Socially responsible investing also includes impact investing, where an investment is expected to produce a direct social benefit, and investment screening, which excludes companies and/or industries whose businesses or practices run contrary to a client’s goals.
Our Role in Assisting Your Socially Responsible Investing Goals
Many Gould Asset Management clients consider socially responsible investing for their portfolios, and our process supports them. Understanding clients’ objectives and values is essential in all types of investing, but it is especially important here.
The advisors at Gould Asset Management work closely with clients to learn about their social goals, values, and motivations. A crucial point to understand from the start is how clients think about defining and implementing a socially responsible investment plan. It’s different for every client.
While each client might have a different way of looking at socially responsible investing, there are three elements we focus on to align with our clients’ investment goals:
- Determining the social goals with the highest priority
- Identifying the investments that match those priorities
- Understanding the tradeoffs
To identify investments for clients, our firm monitors an ever-growing pool of socially responsible investment vehicles, including index and actively managed funds, exchange-traded funds, managed mutual funds, and individual equities managed according to client-specified criteria.
Gould Asset Management overlays its approach to socially responsible investing on top of diversified, risk-managed strategies, which can be customized for different risk tolerances and return objectives.
A Financial Advisor Can Guide Your Socially Responsible Investment Journey
Do you have causes or issues you want to support financially while generating a competitive market return? Gould Asset Management works with a diverse range of investors, applying our substantial experience in socially responsible investing.
Please contact us to see how we might help you invest in a way that supports the issues and causes you believe in. To schedule a meeting, call (909) 445-1291, email contact@gouldasset.com, or request a meeting on our website.
About Scott
Scott Smith is Partner and Senior Portfolio Manager at Gould Asset Management (founded in 1999), an independent registered investment adviser based in Claremont, California. The firm manages customized portfolios on behalf of individuals, families, and nonprofits, and offers a range of services, including retirement planning, charitable giving strategies, and values-based investment options. As fiduciaries, they always put their clients’ interests first while providing a culture of superior personal service.
Scott Smith joined Gould Asset Management in 2004 and is a partner at the firm. In his role as a senior portfolio manager, he provides ongoing expert management of client investment portfolios, with an emphasis on Gould’s asset allocation and covered-call writing strategies. Among his investment interests, Scott has developed expertise in helping clients implement their “responsible investing” goals, which can include environmental, social and corporate governance aims. He also oversees the firm’s investment technology initiatives.
Prior to 2004, Scott worked as a business and litigation consultant for Tucker Alan Inc (now Navigant Consulting), where he performed financial and economic analyses, developed financial models, and conducted market and company-specific research.
Scott received a Bachelor of Arts in Economics, with honors, from Claremont McKenna College and an MBA from the Peter F. Drucker and Masatoshi Ito Graduate School of Management at the Claremont Graduate University (CGU). It was at CGU that Scott met Don Gould, who was teaching an investment management practicum course as an adjunct faculty member. Upon completion of the course (and Scott’s MBA), Don offered Scott a position at Gould and the rest, as they say, is history.
Scott holds the Chartered Financial Analyst® (CFA®) designation, and is a member of the CFA Institute and the CFA Society of Los Angeles. Scott resides in Claremont, California with his wife, Claire, and their two children, Addie and Asher. He enjoys traveling, skiing, and golfing in his free time and is actively involved in his local church. To learn more about Scott, connect with him on LinkedIn.