We start out by creating a list of sustainable and responsible companies. We are constantly analyzing this list to add or remove companies depending on their sustainability practices, products or ethics. We are constantly asking the question, "What do we WANT to own?"
We then employ a mix of fundamental stock analysis, along with enhanced ESG (Environmental, Social & Governance) metrics from multiple research sources, to assign each company a proprietary score. That score helps us to further focus the portfolio on the best of the best.
This customized universe of companies is then entered into the Folio investment engine to custom-craft a portfolio. Clients can further customize their portfolios by making selections such as Cruelty-Free or adding higher allocations in renewable energy.
A diversified, risk-balanced portfolio should be more than just stocks. To balance out the risk in stock portfolios, we add ESG bonds based on the clients' risk tolerance. The more risk averse you are, the more bonds in your portfolio.
Once your goals and risk tolerance has been determined, we'll invest your monies into your custom sustainable and responsible portfolio. Sometimes stock prices are high and difficult to allocate into your portfolio - that's why we use fractional shares, so you'll always get a true allocation no matter how much you invest! You'll be able to track your investment progress online to see how close you're getting to achieving your financial goals.
We regularly monitor our sustainable and responsible investment universe, adding and subtracting companies based on their sustainability policies, products, services and ethics. We rebalance the portfolio to make sure that your investments are always in alignment with your goals.
Since December of 2012, Earth Equity has managed the Green Sage Sustainability Portfolio. It's our firm's Signature fossil-fuel free, sustainable individual stock portfolio. Since inception, it has outperformed its benchmark, the MSCI All Cap World Index.
Align portfolios use the same universe of sustainable stocks as the Green Sage Sustainability Portfolio. The only difference is that Align portfolios are customized to your specific interests and risk tolerance using the Folio portfolio engine. Check out the latest quarterly fact sheet for more information!
