Invest In Your Future

Adding ESG evaluation in the construction of target portfolios not only

gives employees the ability to align their retirement assets with their values, but also gives their portfolios an information advantage over portfolios that don't consider ESG factors.(1)

Impact RetirementTM ESG focused target portfolios are a composite of ESG focused mutual funds. The allocation to each respective fund in the portfolio is based upon an age appropriate or target risk level. Target-date portfolios change over time, getting more conservative as the vintage ages. This automatic de-risking of the portfolio over time is referred to as the “glide path.” Target-risk portfolios attempt to maintain a static risk level.

Many retirement plan record keepers have technology that allows for the creation of custom target portfolios. Adding Impact Retirement ESG focused portfolios to a plan on one of these platforms can be as easy as adding a few new funds to a plan's investment menu.

Vintage

Sample portfolio allocation for illustrative purposes and does not reflect an actual portfolio allocation.

Fund Evaluation: traditional and ESG factors

Managers are evaluated on a quarterly basis for ESG, performance, risk and management factors. Funds that fail to meet the evaluation criterial documented in the Investment Policy Statement (IPS) will either be placed on "watch" or replaced depending on the deficiencies of the particular fund.

Traditional Factors Considered

  • Manager style and market cap consistency

  • Performance over short, mid and longer term

  • Risk and risk adjusted performance

  • Manager tenure

  • Expenses

  • Overall management firm strength

&

ESG Factors Considered

  • Sustainalytics Score & Morningstar Sustainability Rating

  • Objectionable lines of business

  • Controversial business practices

  • Documented commitment to ESG investment principles

  • Involvement with UN Principles for Responsible Investing or similar organization

  • Voting of proxies in line with ESG values

Deutsche Asset & Wealth Management, "ESG & Corporate Financial Performance: Mapping the global landscape", Dec 2015

Investment advice and financial planning offered through Park + Elm Investment Advisers, LLC, a registered investment advisor, dba ClearPoint Financial Partners. Park + Elm LLC and ClearPoint Financial Partners are separate entities. Impact Retirement portfolios are comprised of underlying funds, which are selected, monitored and maintained by ClearPoint Financial Partners.

For more information contact:

Mike Grimme

0425-633-0309

mgrimme@clearpointfp.com