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Socially Responsible Investing


Socially Responsible Investing (SRI) is increasingly becoming part of more investor strategies. To provide some background information in regards to what this signifies, SRI is an investment strategy, which seeks to attain financial gain as well as achieve a positive social impact.

An example of SRI is “community investing.” Monetary funds invested in this dimension go directly to organizations that have a tendency to help the community by retrieving funds from secondary sources such as banks. The funds provided by banks allow organizations to provide their services (which greatly benefit the community) to the general public. Some examples could include affordable housing as well as loans to start-up businesses.

SRI was not always a profitable path to take when it came to the world of investing. However, as time went on, technological breakthroughs/advancements occurred thus, allowing SRI to be a relatively logical/common path for investors to take. Below are some of the main benefits of Socially Responsible Investing:

  • Socially responsible organizations face fewer risks to class-action lawsuits, boycotts and unfavorable governmental rulings. ESG (Environmental, Social and Governance) screens are used as a risk-assessment strategy for socially responsible organizations. They are considered heavily when it comes to investment decisions in these organizations.

  • ESG screens tend to filter in economically sensitive/small cap stocks. Historically speaking, small caps have outperformed the widespread market by a significant margin.

  • Lastly, these types of investments are good for your conscience. They help society and serve as a mutual benefit for investors and non-investors.

In conclusion, at TruNorth, we believe that you may take Socially Responsible Investing into consideration too so that you can combine financial success with helping your community at the same time.

 

TruNorth Capital Management L.L.C. (TruNorth Capital) is a fee-only Registered Investment Adviser (RIA) registered with, and regulated by, the United States Securities and Exchange Commission (SEC). TruNorth Capital is limited to providing advisory services to residents of Michigan, Missouri, Washington, and other states where TruNorth Capital is notice filed or is exempt from notice filing. Most but not all states permit a RIA to have a minimum number of clients before notice filing is required, providing the RIA has no physical presence in the non-resident state.  All clients and potential clients have access to important information about our business methods, fees, professional qualifications and all other pertinent business information. By using this website, you accept our Terms of Use and Privacy Policy. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in loss.

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Regarding the interaction TruNorth Capital or its representatives may have with clients and/or potential clients in ERISA-covered plans, including SEPs, SIMPLEs and non-ERISA retirement plans that are subject to Section 4975 of the IRS Code, including IRAs, Keogh plans and Solo 401(k)s (collectively "retirement plans"), TruNorth Capital may provide non-discretionary investment advice to a specific investor, recommending or suggesting the acquisition or disposing of securities or other investment property in a retirement plan and/or recommending a rollover from a retirement plan to another. During the course of this interaction, TruNorth Capital meets their requirements of a "level-fee fiduciary" and adheres to the Impartial Conduct Standards that require TruNorth Capital to a) provide advice that is in the client's best interest, b) receive only reasonable compensation for its advice and; c) not make materially misleading statements. 

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