For example, you may be interested in investments that examine the relevant risks and opportunities associated with climate change.Ĭompanies like Calvert have an increasingly wide variety of products that consider ESG issues in their investment process. In addition, you may want to take into account environmental, social and governance (ESG) issues that are important to you. Review your financial goals and the time horizon for the investment, as well as your tolerance for risk. Step 1: Assess your investment objectives While each online broker-dealer may have a slightly different process, here’s a general look at the steps required for online investing. While each brokerage firm is different, many include selections from diversified families of responsibly invested mutual funds, encompassing active and passively managed equity, income, alternative and multi-asset strategies.
How to talk to your financial advisor about Responsible Investing and Calvert fundsĬalvert funds can be purchased through financial advisors or via online brokers. Responsible Investing has grown significantly and can be a viable option in a client's portfolio. Some of the factors that may have discouraged clients from pursuing ESG investing are lack of knowledge, difficulty evaluating ESG performance, limited investment opportunities and troubles researching ESG investments - problems that advisors are well-equipped to address.Ĭontrary to the dated perceptions of ESG investing, there is no "penalty" or drop in performance inherent with ESG investing - results have shown that ESG investing is generally competitive with its non-ESG investing counterparts.Įvery client’s needs are different. In addition to asking clients about their financial goals and risk tolerance, ask whether ESG issues are important to them, and how they would like to factor key issues like climate change, data security or fossil fuels into their investing decisions. Here are some tips for starting the conversation. However, an April 2019 survey by InvestmentNews, sponsored by Calvert, revealed that only 21% of financial advisors were proactive in initiating ESG conversations, despite the fact that 42% of investors surveyed preferred to work with an advisor for guidance on ESG investments. Where client and advisor interests go, assets follow. Available data indicates that investors across age ranges and income levels are showing greater interest in ESG investing. Investors are increasingly interested in discussing how environmental, social and governance (ESG) strategies can be implemented into their portfolios. How to talk to your clients about Responsible Investing Click on fund name above for more information. Accordingly, you can lose money investing in these funds. It is difficult to predict the timing, duration, and potential adverse effects (e.g. natural disasters, health crises, terrorism, conflicts and social unrest) that affect markets, countries, companies or governments. Market values can change daily due to economic and other events (e.g. Funds are subject to market risk, which is the possibility that the market values of securities owned by the fund will decline and that the value of fund shares may therefore be less than what you paid for them. Risk Considerations: There is no assurance that a mutual fund will achieve its investment objective. The printing, copying, redistribution, or retransmission of this Content without express written permission is prohibited Used by permission an d protected by the Copyright Laws of the United States. From Refinitiv Lipper Awards, ©2022 Refinitiv. Other share classes may have different performance and expense characteristics.
For more information, see Although Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Lipper. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the Lipper Fund Award. The 20 Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 36, 60 and 120 months. Source: The Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers. Past performance is no guarantee of future results. For the Fund's performance as of the most recent month-end, please refer to our Performance page. The mutual funds shown may have experienced negative performance during one or more of the time periods represented by the Refinitiv Lipper Fund Award. Refinitiv Lipper Fund Awards as of Novembased on risk adjusted returns.