Values-Based Investing

Values-Based Investing: Aligning Your Investments with your Beliefs

At Freitas Wealth Management Group, we believe that your investments should reflect your values and make a positive impact on the world. That’s why we offer values-based investing strategies that empower you to align your financial goals with your personal beliefs.

What is Values-Based Investing?

Values-based investing, also known as socially responsible investing (SRI) or sustainable investing, is an investment approach that integrates environmental, social and governance (ESG) factors into the investment decision-making process. It allows you to invest in companies and funds that not only generate financial returns but also have a positive impact on society and the environment.

When constructing values-based investment models, we seek out asset managers that consider the impact of what the business does as well as the impact of how the business operates. This video from our partners at Eventide Asset Management explaining the proprietary framework they use to evaluate companies provides insight into the type of asset managers we are looking for.

The Benefits of Values-Based Investing:

  1. Alignment with Your Values:  Values-based investing enables you to support companies that align with your personal beliefs and values. Whether you’re passionate about renewable energy, gender equality, or community development, you can invest in companies that actively contribute to these causes.
  2. Long-Term Performance: Research has shown that companies with strong ESG practices tend to outperform their peers over the long term. By considering ESG factors, values-based investing can potentially enhance your portfolio’s risk -adjusted returns.
  3. Mitigating Risk: By assessing environmental and social risks, values-based investing helps identify companies that may be exposed to potential controversies or regulatory issues. This risk-aware approach can protect your portfolio from potential negative impacts.
  4. Transparency and Accountability:  Companies that embrace values-based practices are often more transparent about their operations and are held accountable for their impact on the environment and society. Investing in these companies can provide you with greater visibility into where your money is going.

“Do well by doing good.”

- Benjamin Franklin

Get Started with Values-Based Investing Today

Ready to align your investment with your values? Reach out to us with your contact information below to schedule a consultation with our values-based investing team member. Let’s work together to create a portfolio that not only drives financial returns but also makes a positive difference in the world.

Socially Responsible Investing (SRI) / Environmental Social Governance (ESG) has certain risks based on the fact that the criteria excludes securities of certain issuers for non-financial reasons and, therefore, investors may forgo some market opportunities and the universe of investments available will be smaller.

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