SUSTAINABLE INVESTING

Sustainable Investing

financial returns and a positive societal effect

Sustainable Investing describes an investment approach that incorporates environmental, social and corporate governance (ESG) considerations with management of investment portfolios. Proponents of sustainable investing seek to align their core social values with meeting their personal, family, or institutional investment objectives.

Clearstead is a leader in educating clients about sustainable investing and implementing these policies in portfolios. We have helped clients comply with socially responsible mandates for many years, and in recent years have advised clients on the implications of proactive sustainable investing programs. In 2019 Clearstead sponsored a Roundtable discussion with national experts entitled, The Cost of Conscience: Charting ESG Roadmaps for Institutional Portfolios. The outcome of this Roundtable was that we included sustainable investing standards in our manager research efforts.

We recognize that clients juggle demands from multiple stakeholders as well as their own day-to-day operations. That is why we listen first and then walk them through Clearstead’s Sustainable Investing Process. At every step, we make the process seamless, transparent, and easily understood.

The Clearstead Sustainable Investing Spectrum

Our solutions are not one-size-fits-all. Some clients might be comfortable simply avoiding investments that are incompatible with their missions and goals. Others seek a more active approach, incorporating Market Rate Impact Investing into their strategy by investing in companies that advance their ideals.

Exclusionary Investing

Known as “socially responsible investing,” this strategy ensures that clients will not own any investments that are incompatible with their organization’s mission and goals. Example: A religious organization not wanting to own any stocks that include nicotine.

Integration Investing

Known as “environmental, social and governance” (ESG) investing, this strategy scores companies based on how they rate from an environmental, social and governance perspective and seeks to influence standards of corporate behavior. Example: A cultural institution wanting to own stock in a particular company if it scores favorably on sustainability.

Thematic Investing

Thematic investing focuses on a particular area within ESG and tilts investments towards stocks within a desired area. Example: investing in ESG equity funds that tilt toward clean energy or women’s inclusion.

Market Rate Impact Investing

Investing in strategies with direct ESG impacts with the intention of seeking a higher risk, higher rate of market return.
Example: investing in a private equity fund that directly invests in companies that are advancing on environmental, social or governance causes.

CASE STUDY

Clearstead’s Sustainable Investing platform helps organization incorporate its mission into its portfolio

The Clearstead Sustainable Investing Process

We recognize that our clients are juggling demands from multiple stakeholders as well as their own day-to-day operations. That is why we listen to client objectives first and then walk them through Clearstead’s Sustainable Investing Process. At every step, we make the process seamless, transparent, and easily understood.

Education & Goal Alignment

From board members to customers, organizations today must juggle priorities across many different stakeholders. We believe committee education and discussion is key to aligning goals and setting objectives.

Rigorous Research

Once clients agree on their current appetite for sustainable investing, our research and investment teams gets to work. With full collaboration with our research team, we apply the same disciplined, institutional approach, to ensure portfolio performance remains top of mind.

Actionable Strategy

We construct portfolios to align with your customized strategy and develop desired check-ins with clients who may want to move along the spectrum.

Measurable Results

We’re constantly measuring performance and conduct a meticulous annual audit, showing clients how their funds performed and how those investments were exposed to their risk areas. We thoroughly research and quantify the investments to score clients’ portfolios according to ESG, and we measure the impact of these investments on overall performance to help guide future decision-making.

Find Your Clarity

We provide objective financial leadership through our fee-only advisory model. We do not offer proprietary products and receive no commissions from the investments we recommend: our only source of revenue is advisory fees we receive for financial advice. Our objectivity is central to the effective service we provide our clients.

Clearstead is an institutional and private client advisory firm that is relentless in providing solutions so our clients can exceed their aspirations and build stronger legacies for their families, their communities, and themselves.

LEGAL STATEMENT

SERVICES

PRIVATE WEALTH MANAGEMENT

INSTITUTIONAL INVESTMENT CONSULTING

OUTSOURCED & DISCRECTIONARY MANAGEMENT

401K & RETIREMENT

RESPONSIBLE INVESTING

RESEARCH

INVESTMENT PHILOSOPHY

RESEARCH PROCESS

1100 Superior Avenue East
Suite 700 | Cleveland, Ohio 44114
216-621-1090