ESG Links: Allocating with Purpose

Due to client demand, Ritholtz Wealth Management has created an ESG version of our classic asset allocation models, known as the Portland Portfolio. Research shows that high net worth families are increasingly interested in directing their investable assets toward companies with good records on Environmental, Social and Governance issues.

Please enjoy the below reads, curated by our in-house ESG expert, Joey Fishman. And if ESG investing is something you’d like to learn more about, talk to us here

The State of ESG Disclosure  –  ‘Boilerplate’ hurts companies and investors  (Sustainability Accounting Standards Board)

Some will outperform, most will not (Plan Sponsor)

Natural catastrophes led to losses of $79.96 billion worldwide last year — and only $27.79 billion of that was insured (Climate Wise, Investing for Resilience)

Many ‘ESG’ managers fail to explain how they screen investments  (FA Mag)

Different strokes for different folks – The many approaches to Sustainable Investing (Morgan Stanley – Sustainable Signals)

Three Starter Questions for ESG  (Wealth Management)

ESG investors prepare to go local in Trump’s America  (Bloomberg / Sustainable Finance)


Examples of ESG incorporation strategies can be summarized as follows:

Positive/best-in-class: Investment in sectors, companies or projects selected for positive ESG performance relative to industry peers. This also includes avoiding companies that do not meet certain ESG performance thresholds.

Negative/exclusionary screening: The exclusion from a fund or plan of certain sectors or companies involved in activities deemed unacceptable or controversial.

ESG integration: The systematic and explicit inclusion by investment managers of ESG factors into traditional financial analysis.

Impact investing: Targeted investments, typically made in private markets, aimed at solving social or environmental problems.

Sustainability themed investing: The selection of assets specifically related to sustainability in single- or multi-themed funds.

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Talk to us about ESG investing here


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