Washington Post features Newground's Bruce Herbert
Washington Post financial reporters Alissa Greenberg and Hannah Ziegler published an excellent primer on ESG** investing that quotes Newground chief executive Bruce Herbert.
The article, "How to Decide Whether Sustainable Investing is Right For You", gives a thorough look at the reasons why so many investors opt for a values-aligned approach to managing money, despite a right-wing-manufactured faux controversy that targets ESG investing.
** ESG = Environmental, Social, and good Governance factors.
One reason [ESG] funds do well is that they account for long-term risks in a way that more generalized investment does not, said Bruce Herbert, chief executive of Newground Social Investment.
In the long run, “what’s most profitable is also often most sustainable,” he said, noting that many investment professionals consider it a “best practice” to take ESG factors into account.
Here are the relevant sections that cite Bruce:
And if you run into a WA Post paywall, click for a PDF copy of the full article.
How do ESG funds compare with other funds’ performance?
Opponents of ESG investing frequently argue that the rate of return isn’t as robust as it is with conventional options. In recent years, however, these funds have surged – outperforming conventional-fund returns every year since 2019, except in 2022, the Institute for Energy Economics and Financial Analysis reported. And in 2023, they beat traditional funds across all major asset classes and regions, according to the Morgan Stanley Institute for Sustainable Investing, posting a median return of 12.6 percent, compared with 8.6 percent for traditional funds.
One reason these funds do well is that they account for long-term risks in a way that more generalized investment does not, said Bruce Herbert, chief executive of Newground Social Investment.
In the long run, “what’s most profitable is also often most sustainable,” he said, noting that many investment professionals consider it a “best practice” to take ESG factors into account.
How do I find ESG funds that reflect my values?
. . . You can also check a company’s sustainability reports, known as Form NP-X, which are filed with the Securities and Exchange Commission and provide context about a company’s behavior and history of voting on shareholder proposals, Herbert notes.
. . . If you’re on your own, the universal advice for investing also applies to ESG funds: Make sure to diversify to protect against market bumps. That means prioritizing options such as ESG-oriented mutual funds or exchange-traded funds to manage risk, Herbert says. He also recommends considering a community-focused approach, such as supporting microcredit lending, credit unions or loan funds in under-resourced areas or buying bonds that back hospitals, schools and public transit.
To read the full article at the Washington Post site:
How to decide whether sustainable investing is right for you (Washington Post 12/11/2024)
• Download a PDF copy here
Photo: Getty Images, via Canva
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