Impact Investing

At Somerset Advisory, we believe your investments can “do good” and still do well. We help clients pursue Impact Investing opportunities that diversify their portfolios and help them make a positive impact on the world.

We define Impact Investing as an opportunity to invest in companies that align with what you believe in while selecting quality stocks and investments that can be beneficial for your portfolio in the long run.

While this can mean focusing on investments purely designed to support causes and initiatives that you care about, it can also simply integrate stocks from companies that are generating their positive returns by focusing on improved workplaces, minority inclusion, environmental awareness, etc.

We strive to strike a balance between your impact investing values (such as environmentally responsible practices, affordable healthcare or sustainable agriculture) and return requirements to support your long-term financial goals.

Our Approach

At Somerset Advisory, our approach to Impact Investing features four key steps:

1. Clarify

We develop a customized Impact Investing strategy that aligns your criteria, goals and preferences with what can realistically be accomplished with current investment choices. We believe that industry definitions and screening tools haven’t really caught up to the demand for Impact Investing. Additionally, there are lots of products that are labeling themselves as “Socially Responsible Investing” or “Sustainable and Responsible Investing” (SRI) that may not necessarily be meaningfully applying appropriate criteria. Our transparent, research-driven approach is designed to focus on optimizing available options.

2. Define

We help you create both inclusive and exclusive criteria to support the selection of investments that align with your beliefs and initiatives that are meaningful to you. We strive to develop allocation strategies that accentuate your values (such as sustainable energy or female board participation) and steer clear of concepts and practices that contest with your beliefs (such as firearms, child labor or genetic food modification). Additionally, we work with you to determine how much clout Impact Investing criteria should have on your overall portfolio. We help you explore where you fall on the spectrum of choice between values preservation and positive returns. While these are not mutually exclusive concepts, we believe it’s important to develop a clear understanding of your preferences for how these types of investments should be weighted, as well as concessions you’re willing to make and criteria contingencies.

3. Educate

In our experience, many investors do not know that Impact or Values-Based Investing is available as criteria for asset allocation and portfolio construction. Our approach starts with a simple question: Do you have any core values or beliefs that you would like to influence in your investment selection?

4. Monitor

We monitor the performance of your Impact Portfolio on an ongoing basis, both relative to an appropriate benchmark and also to the extent that the investments really are following the criteria used to select them.

Strategic Benefits

Impact Investing principles can be used to help diversify portfolios, support risk management and fulfill fiduciary duties. While Impact Investing, Socially Responsible Investing, and Environmental, Social and Governance Investing criteria varies, it often features many of the hallmarks of strong, long-term investment selection strategies.

Our criteria features:


STRONG GROWTH HISTORY AND TRAJECTORY


FINANCIAL PERFORMANCE (INCLUDING REVENUE AND RISK-ADJUSTED RETURNS)


SUSTAINABLE, SCALABLE, FUTURE-ORIENTED BUSINESS MODEL


POSITIONING FOR EMERGING OPPORTUNITIES


PRODUCTIVITY AND EFFICIENCY


MANAGEMENT/CORPORATE GOVERNANCE


RISK PROFILE (INCLUDING REGULATORY COMPLIANCE)


ENVIRONMENTAL PERFORMANCE


COMMUNITY ENGAGEMENT


CORPORATE CULTURE, WORKPLACE POLICIES AND ETHICAL PRACTICES

SAFETY, QUALITY & SOCIETAL OR ENVIRONMENTAL BENEFITS OF PRODUCTS AND SERVICES

Shape Your Portfolio

At Somerset Advisory, we believe that it's possible to achieve positive returns and have a portfolio that is both sustainable and responsible. Contact us today to learn more about our approach to Impact Investing and explore opportunities to integrate these types of investments into your portfolio.

Resources

Like other types of investments, positive returns are not guaranteed. However, depending on your investment selection, your Impact Portfolio can support positive outcomes in your overall portfolio. Learn more about Impact Investing, ESG and SRI investments’ financial performance:

PAX World Investments: Investing Is Your Superpower

GIIN - The State of Impact Measurement & Management Practice

Sustainalytics - Understanding ESG Incidents: Key Lessons for Investors

Contact Somerset Advisory

2231 20th Avenue South
Suite 200
Birmingham, AL 35223
Office: (205) 518-7494

Securities offered through Hightower Securities, LLC, Member FINRA/SIPC, Hightower Advisors, LLC is a SEC registered investment adviser. brokercheck.finra.org
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