Socially Responsible Investing

At Vincere, we build sustainable portfolios. We view “sustainable” as being able to sustain the ups and downs of the markets as well as being aligned to your core values and beliefs.

start Investing Responsibly

Enter, Socially Responsible Investing (SRI) and Environmental and Social Governance (ESG)

What do these labels mean? Each of us has a set of moral and ethical convictions we carry around that range from very mild to very strong. We have different beliefs about the best way life can be lived and what we need to do to achieve those outcomes both individually and as a group. SRI and ESG aim to capture these convictions in an investment strategy.

What isn’t working

SRI and ESG investing growth have snowballed. Unfortunately, in the mad rush to capture this growing market as convictions become ever more important, the finance industry has cut quite a few corners. Facebook, Chevron, Microsoft, Comcast, even Monsanto - These are probably names you may not expect to find in portfolios claiming to be SRI or ESG. Yet, you can find them all. Why is this? Three main issues plague the current movement.

First, the meaning of what makes something socially responsible is significantly different from person to person. Some people view Facebook’s data ethics as world-ending, while others view it as perfectly responsible due to low environmental impact

Second, the conversation around SRI and ESG is done backward. Financial companies first come up with a portfolio that looks good broadly; they get the SRI label, THEN they try and find clients to buy the package.

Finally, the primary method of being socially responsible is to exclude companies that are misaligned with the convictions of the investor. While this does have a real effect on the market, it is the lowest possible impact an investor can have with their money.

How SRI & ESG should be done

Tiers of Impact:

Tier 1: Exclusion

Eliminate investments or companies you don’t want to support. Minimal market impact. Exclusion is how most ESG & SRI funds work.

Tier 2: Inclusion

Instead of excluding specific players, you actively choose public market investments you want to support that align with your values. Typically, financially supporting companies trying to have an impact can have more tangible results. The smaller the company the higher the impact.

Tier 3: Off Market Use of Assets

Moving beyond investments and directly giving companies your support and money by purchasing their products or services.

Tier 4: Direct Investment

This can be charity (which we can help with too), but we also look to direct investment into things such as green real estate, affordable housing, carbon credits, private companies with aligned missions, venture capital/angel investing and, more broadly, impact investment funds

How is Vincere Different?

Our Mission Taking all of this into account. At Vincere, we are here to provide a more comprehensive and tailored SRI experience to each of our interested clients.

1. We start with a deep-dive into your personal convictions and establish a framework of what SRI means to you.

2. From there, we take a multi-faceted approach to try and hit all the tiers of impact.
a. We have built up relationships with boots-on-the-ground SRI fund managers who are deeply concerned with the over-focus on Tier 1 (Exclusion) impact and are committed to shifting their funds firmly into the Tier 2 (Inclusion) space. We use these partnerships to alter our core investment strategies to align with each investor’s convictions.
b. We have also established connections with numerous impact fund managers to allocate portions of eligible portfolios in the Tier 4 (Direct Investment) space with very high alignment.
c. Our financial planning focus also allows us to bring Tier 3 (Off-Market Use) impact opportunities to the table that are both pro-social and suitable long-term investments.

3. Finally, through our connections and our commitment to the field we continue to monitor emerging opportunities for our clients. We want you to have the chance to participate in the ever-changing SRI landscape and ensure your dollars are not only growing but promoting the change you want to see in the world.

Your Money. Your Life.

Vincere helps you live your ideal lifestyle by providing financial planning and investment advice that helps you pursue your passion and achieve a "Work Optional" Lifestyle.