Investing with Your Heart

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More than $3.7 trillion is managed under sustainable and responsible investing principles.¹ This includes mutual funds, endowments and even venture-capital funds.

Amounts in mutual funds are subject to fluctuation in value and market risk. Shares, when redeemed, may be worth more or less that their original cost. Mutual funds are sold only by prospectus. Please consider the charges, risks, expenses and investment objectives carefully before investing. A prospectus containing this and other information about the investment company can be obtained from your financial professional. Read it carefully before you invest or send money.

What is “Socially Responsible Investing?”

The definition of socially responsible investing has evolved, and may be referred to by different names, e.g., “sustainable and responsible investing” or “values-based investing.”

Whatever term is used, the investment discipline is usually characterized by a set of principles that govern how investments are selected. One widely used framework includes environmental, social and corporate governance criteria (ESG).

What’s ESG?

These ESG criteria of good corporate governance, positive environmental impact and responsible community involvement are a guide for making investment selections, akin to other investment-related criteria, e.g., price/earnings ratio or revenue growth.

The underlying belief is that good corporate practices may lead to better long-term corporate performance.

Investor experience with socially responsible investing will vary. As with any mutual fund or exchange-traded fund, they are subject to fluctuation in value and market risk. Shares, when redeemed, may be worth more or less than their original cost.

Individuals should also recognize that each investment approach may operate under a different set of principles, so you should be careful that your selection mirrors your personal values and beliefs.

1. The Forum for Sustainable and Responsible Investment, May 2014. Figures are as of December 31, 2011.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG, LLC, to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2014 Faulkner Media Group.