Kirk's thoughts on ESG Investing

Climate change, environmentally friendly, hydrogen fuel, recycling, and much more! The investment industry has been exploring Environmental, Social and Governance (ESG) fund solutions and have been adding to existing fund portfolios, and opening new funds to capture this opportunity for a few years now and has been accelerating as we come out of the Pandemic. As part of Allied Financial Services Philosophy we endorse and support our industry ESG funds and our fund managers.

Why ESG Matters

• Investment managers have an important role to play in allocating capital for society’s long-term best interest,

• Integrating ESG factors into the investment process provides a deeper understanding of an investment’s risk profile,

• Poor ESG performance can be costly. Major ESG-related controversies continue to erode shareholder value across a wide range of sectors and industries.

Our management teams and fund companies have been refining their processes and creating alliances to align this sector to ensure there is proper governance, oversight, and a code of conduct to protect the investor. As part of our Mutual Fund Due Diligence, we strive to filter only the best funds for you, our clients. As part of our goal to keep you informed, we thought we should give you a brief outline on ESG investing. Tara has written a more in-depth report on ESGs (see link). Or better yet there is a great story to be had so feel free to contact me to discuss how this works in your investment portfolio. I look forward to hearing from you.

Kirk