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Community Investing Achiever in the Social Investment Forum 1% For Community campaign since 2002. Calvert Foundation Advisor of the Year in 2004. Learn more!

(Network Services Member)

You Are Not Alone   Key Strategies of Sustainable Investing   Sustainable Investing and Performance   How These Services Can Benefit You   Investment Consulting and Minimums   Account Information   United Nations Principles for Responsible Investment   Account Types Served   Fees For Advisory Services

You Are Not Alone, Research Indicates That:

• 92% of investors believe that a financial advisor should investigate ethical as well as financial performance of investments before making recommendations.¹

• 84% of investors agree that, in the long run, companies with high ethical integrity make better investments.²

• 71% of investors believe that companies that operate with higher levels of integrity carry less investment risk.¹

^{1. Harris Interactive Poll, conducted for Calvert, November 2003; 2. Neuwirth Research, conducted for Calvert, August 2003.}

Key Strategies

There are a range of perspectives, approaches, and strategies to implementing socially responsible investing. You are probably already familiar with the idea of avoidance or qualitative screening. But there is much more. 

Sustainable investment strategies include corporate engagement through shareholder dialogue, proxy voting, and the shareholder resolution process. And of high social value, this sensible approach to investing also includes community investing practices that help individuals and regions pull themselves out of poverty and regain socio-economic self-empowerment. 

The key strategies employed by the sustainable investment movement are:

1. Investment screening criteria and analysis.  
   Example: You want to screen out tobacco, gambling, nuclear power, and weapons.
   This is simply avoiding investment in certain industries or practices in your portfolio.
   Such "avoidance screening" is usually coordinated through your sustainable and SRI mutual fund or separate account manager.
   Example: You want to consider the domestic and international labor practices, environmental practices, and full public disclosure.
   To maintain a diversified portfolio, you have to invest in companies that are not perfect but have better qualities than others in their industry. That leads to what happens next--in shareholder activism.
   Such "qualitative screening" is usually coordinated through your SRI mutual fund or separate account manager.
   "In our research, we ask companies questions that they are not used to being asked, about issues that they've never before been told are important. In the U.S. and increasingly in Western Europe, simply putting issues on the table can positively affect management's decision making." Amy Domini, Summer 2007 GreenMoneyJournal.com.

2. Shareholder advocacy and activism. Examples: You like the idea of your money managers asking a major company to report their EEO data or global labor standards to the public, or asking a large media company to not support a porn network, or getting a large chain to phase out selling unsustainably harvested old-growth and tropical lumber.
   There is prevalent use of this tactic lately by the core sustainable and SRI community to get the companies that made it past the screening stage to change their ways.
   Some big-name companies are taking heed. Recently, shareholder campaigns for tighter supplier oversight have resulted in steps being taken by Nike Inc., Wal-Mart Stores Inc. and Walt Disney Co. Disney, where one shareholder proposal won 43% support, is making sweeping changes to the way it monitors, audits and reports on contractors. Gap Inc. has also started releasing more information on overseas contractors' compliance. Get the latest scoop on what's going on from the SIF Advocacy & Public Policy web site.
   Shareholder activism is usually coordinated through your sustainable and SRI mutual fund or separate account manager.
   See Co-op America's special 16-page guide to shareholder action, Shareholders In Action. (Note: Large 500k document, not recommended for slow connections or the impatient.)

3. Community investing. Example: A young couple was a long-term welfare recipient. They turned to his long time hobby, woodworking for help. And, with the help of a small loan from a community loan fund, they were able to turn his woodworking into a business that now supports the whole family off welfare. Get the latest scoop on what's going on from the Community Investing web site.
   You can now easily make job creation, child care, and affordable housing a portion of your portfolio by investing in professionally-managed community investment notes.
   This office is participating in the 1% for community campaign. You can too. If you haven't done so already, ask us how. disclaimers

Most people think that socially responsible investing only encompasses negative screening. Now you know better. When your money management is engaged in each of these key strategies above, then you're fully participating in the social investing movement!

Measuring the Impact of Social Screening Criteria on Financial Performance

A common misconception about sustainable investing and SRI is that it will cause lower financial performance. Well, not necessarily so. You can conduct your own research on this question from the following web sites:

• The FTSE KLD 400 Social^SM Index

• Dow Jones Sustainability Indexes

• The Calvert Social Index^TM

• SRI Academic Studies

• Jantzi Social Index^®

(see disclaimers)

How These Services and Strategies Can Benefit You

• Managing Portfolio Risk
  Appropriate asset allocation (a portfolio's mix of asset classes), can help you manage risk. Many professional investment advisors, including us, believe that probably the most important factor in the risk and performance of your portfolio is the asset allocation that governs your portfolio. Timing and securities selection have been found to be smaller determinants of performance. Your professionally managed portfolio should utilize sophisticated asset allocation strategies within the context of an appropriately diversified mix of investments.

• Through sustainable investing, you can be supportive of moving towards a good society and environment.
• You can free up time to do more of the things in life you enjoy including spending more time with family, hobbies, and community.
• You may also find you have less need to personally figure out and track economic and investment trends yet still efficiently oversee your advisor.

Investment services are tailored for you or your organization. We feature the First Affirmative Financial Network investment management services as well as other approaches that may be appropriate to your situation. We  enjoy assisting clients in deciding on a sensible course of action.

Investment Consulting and Minimums

Depending on your situation, objectives, and the amount you are working with, you may benefit from our state-of-the-art investment management services. You may be best served with managed portfolios of sustainable and responsible mutual funds, ETFs, an individualized set of managed folios, separate account management with individual stocks and bonds, and/or community investment notes.

Most clients transfer to our services with assets already managed elsewhere such as with brokers, investment advisors, retirement accounts, trust companies, or banks. All this is coordinated and monitored for you through our industry-standard systems, networks, and teams of professionals.

If during our initial conversation it appears that your situation or needs are not a perfect match for our service offering, we can probably provide you an introduction to one of our qualified colleagues.

Self-Directed Accounts

Sometimes, a client wishes to maintain their own investments or cash-management accounts. In conjunction with receiving one of our other services described above, we may be able to assist you in establishing your self-directed or cash-management account. This kind of account does not receive ongoing management services but is provided as a client convenience.

Account Information

Your accounts are normally held via custodial arrangement with Charles Schwab Institutional Services, KMS Financial Services, Inc. (clearing through Pershing, LLC), FOLIOfn, or other custodians as fully disclosed on new account applications. Alternately, for special situations you may have accounts held directly with a mutual fund company or other platforms.

Account Types Served

• Individual

• Joint

• Trust

• Family, Private, and Public Foundation

• Endowment

• Organization

• UTMA/UGMA

• IRAs (various)

• Retirement Accounts

• 529 College Savings

• and others, just ask.

United Nations Principles for Responsible Investment  

As one of the pioneering investment advisory firms in the Pacific Northwest specializing in helping clients achieve their investment goals and objectives utilizing sustainable and responsible investment strategies, Goodfunds Wealth management is an enthusiastic signatory of the UNPRI. 

Convened in 2005-2006 by the United Nations Secretary-General, the United Nations Principles for Responsible Investment (UNPRI) provides investors with a framework for incorporating environmental, social and governance (ESG) criteria into their investment decisions. A total of 625 firms from around the world have become signatories including asset owners, investment managers, and professional service partners.

Directly or through our investment managers, we are committed to the 6 Principles of Responsible Investment:

• Incorporating ESG issues into investment analysis and decision making processes.
• Being active owners and incorporating ESG issues into our own ownership policies and practices.
• Seeking appropriate disclosure on ESG issues by entities in which we invest.
• Promoting acceptance and implementation of the Principles with the investment industry.
• Working together to enhance our effectiveness in implementing the Principles.
• Reporting on activities and progress towards implementing the Principles.

"History teaches that both investment managers and clients need help if they are to hold successfully to the discipline of long-term commitments. This means restraining themselves from reacting inappropriately to disconcerting short-term data and keeping themselves from taking those unwise actions that seem so obvious and urgent to optimists at market highs and to pessimists at market lows. The best shield for long-term policies against the outrageous attacks of acute short-term data and distress are knowledge and understanding committed to writing."
Charles D. Ellis