RESPONSIBLE INVESTING CASE STUDY
Clearstead’s Responsible Investing platform can help organizations incorporate their mission into their portfolios.
As is often the case with faith-based organizations, they tend to be mindful of their impact on the world and are dedicated to creating a legacy that aligns with their values.
We have found that an organization’s leadership typically recognizes the benefits to Responsible Investing, but the organization can be too busy juggling priorities across many different stakeholders — board members, trustees, and donors. Clearstead can simplify the process and ease an organization into a Responsible Investing strategy.
Clearstead has the ability to implement a Responsible Investing strategy in different
ways. One method is to simply start by excluding investments in companies incompatible with an organization’s missions and goals. These could include companies directly related to alcohol, tobacco, firearms, and gambling.
Screens can be also be applied to different types of strategies, including fixed-income. Once a client selects the most appropriate Responsible Investing strategy, Clearstead updates the organization’s investment policy and governance structure with language that reflects the approach for review and approval by the organization’s board and advisory committee.
Once organizations buy into Responsible Investing they are typically ready for the next phase of our Responsible Investing spectrum, creating a proactive tilt toward companies that match an organization’s priorities, such as specific religious values, environmental responsibility, and an organization’s specific mission.
Clearstead is able to score companies based on how well they align with an organization’s Responsible Investing objectives, and uses tools it has developed to measure the impact of specific investments on the overall portfolio.
Clearstead will conduct a yearly Responsible Investing audit that analyzes an organization’s portfolio and qualify the exposure to risk areas. The goal of our process is that a Responsible Investing strategy will have a neutral effect on portfolio performance, proving that aligning investments with mission can be both a financially and morally sound approach for many institutions.