Frequently Asked Questions

From 1990-January 2017 the MSCI KLD400 Social Index had an annualized gain of 10.44% vs. 9.95% for the S&P 500. Multiple studies have tracked the performance of mutual funds and separately managed accounts that have a socially responsible mandate. Research consistently shows that sustainable investing has a neutral to positive effect on investment performance over time.

The focus of a company on environmental, social and governance factors demonstrates their commitment to being socially responsible. These areas may include:


Climate change and carbon emissions, pollution, energy efficiency, waste management


Labor standards, human rights, community relations, diversity


Executive compensation, business ethics, board composition, lobbying activities,
audit committee

First, we exclude companies with involvement in the exploration and production of fossil fuels, nuclear power, military weapons, civilian firearms, tobacco, gambling, adult entertainment, and the production of alcohol and genetically modified organisms (GMO’s).

After eliminating these companies from consideration, we then look for companies with high Environmental, Social and Governance (ESG) ratings.

These high ESG ideas then undergo quantitative analysis to find companies  that are undervalued with improving business fundamentals, strong balance sheets and a possible catalyst for earnings expansion over time.

According to Morgan Stanley 82% of HNW millennials express interest in Socially Responsible investing compared to 45% overall. Studies by US Trust and Morgan Stanley have concluded that more than 70% of female investors believe that ESG factors are very important in determining which investments to select.