Doing Good Can Be Enriching

February 27, 2017

It’s a common misconception that taking a values-based approach to investment activities means sacrificing potential returns. In her latest column for South Florida Business and Wealth, WE’s Julie Neitzel dispels this myth and discusses how an increasing number of investors are using a values-based approach to generate competitive returns.

“It seems logical that companies effectively applying sustainable business practices perform better and become more successful over the long term,” Neitzel writes. A 2012 study by Osmosis Investment Management validates this conclusion; it found that companies in its study that met energy efficiency standards beat the MSCI World Index annually over an eight-year period.

Along with competitive returns, improvements in fees and accessibility have also made socially responsible investing more appealing. Neitzel notes that there are now funds with competitive expenses, and rating systems are now available that make it easy to identify such funds.

With more than 70 percent of investors under 32 using their investments to address their values and more than 90 percent of high-net-worth individuals engaging in charitable giving, Neitzel predicts the focus on values will only increase.

“Growing demand by investors and their advisors will result in continued innovation in investment products that are competitive and can expand one’s ability to enable doing well by doing good,” she concludes.

The full South Florida Business and Wealth article is available here.