Now That’s Growth!  (Part 2)
Written on February 21, 2020

Now That’s Growth! (Part 2)

Our last hourglass featured “Now That’s Growth Part 1”, five reasons for the tremendous growth of sustainable investing. Here in part 2, are five additional reasons for that growth. 

Mainstream Interest:

Traditional financial companies like Goldman Sachs, J.P. Morgan, Blackrock, and Allianz, etc. have committed to sustainable investment screening and advocacy.

 

Popular Press Exposure: 

A recent (January 20, 2020) Barron’s featured article was titled “Sustainable Funds are Coming of Age”.  Other industry publications, Barron’s, and The Wall Street Journal regularly feature sustainable investing issues.

 

Investment Performance: 

It was previously assumed (for whatever reason!), that investment performance would suffer if sustainable criteria were applied to the selection process.  In short, the old myth that performance would be compromised has been significantly dispelled. That January 20, 2020, Barrons was filled with examples of outperformance of sustainable funds.

 

Growth in the Number of Investment Solutions: 

Not many years ago, the investment options were limited since few firms were screening for sustainability (impact, environmental, social, and corporate governance criteria).  Today, over 300 mutual funds and exchange-traded funds are publicly available.

 

You: 

The public has spoken, and the voices are clearer and louder.  People feel more relevant when their money is connected to issues of personal importance and profit potential.

- Sam

 


The Hourglass is an OFM Wealth Publication.  All information is believed to be from reliable sources, however, we make no representation as to its completeness or accuracy.  All economic and performance information is historical and not indicative of future results.  Any market indices mentioned are unmanaged and cannot be invested in directly.  Additional information, including management fees and expenses, is provided on our Form ADV Part 2.