ESG Investing

Pursuit Wealth Management

What is ESG Investing?

ESG investing strategies take environmental sustainability, social considerations, and corporate governance into account when evaluating investment opportunities. The goal, long term, is always to generate sustainable returns for investors.

At Pursuit Wealth Management, we believe that it is important to always have an open mind to how investing can change over time. The 1980’s saw the proliferation of mutual funds as a popular investment option instead of buying individual stocks. In the 2000’s, Exchange Traded Funds (ETF’s) became popular because of their low cost. Another shift may be materializing in the investment world right now in the form of ESG investing.

ESG is a general term that covers a variety of investment approaches:

Environmental

Renewable Energy, lower carbon emissions, water management, pollution control, etc.

Social

Labor practices, human rights, data protection, selling practices, corporate supply chains

Governance

Board makeup, corruption policies, auditing structure.

Considering these ESG criteria when evaluating opportunities can help us identify companies capable of creating sustainable value and managing a full range of risks. These companies will better be able to create sustainable business models and therefore may be better for long-term investments.

Pursuit Wealth Management has made a commitment to ESG investing. We invest at least 1/3 of our portfolios using ESG criteria. We believe the outcome of these investments will be rewarded in the long run, not just financially, but also with a positive impact to society.

ESG strategies prioritize ESG criteria over other investment criteria. As a result, such strategies will be more limited in the number and types of investments available, and may perform differently than strategies that do not screen for ESG factors. Socially responsible investing is qualitative and subjective by nature, and there is no guarantee that the criteria utilized, or judgment exercised, by Pursuit Wealth Management will reflect the beliefs or values of any one particular investor. Socially responsible norms differ by region. There is no assurance that the socially responsible investing strategy and techniques employed will be successful. Past performance is not a guarantee or reliable indicator of future results. You should read the fund’s prospectus carefully before investing to understand the fund’s investments, and how its ESG orientation may affect its risk. Some funds that consider ESG factors may have different expense ratios than other funds that do not consider ESG factors. Paying more in expenses will reduce the value of your investment over time.