Sand Hill Launches New Socially Responsible Investing Portfolio

Sand Hill Launches New Socially Responsible Investing Portfolio

In an effort to fulfill evolving client needs, Sand Hill has recently launched a Socially Responsible Investing (SRI) portfolio available to all clients across each one of our investment strategies.  While Sand Hill has been investing in the SRI space at the request of clients for numerous years, the launch marks the beginning of a specific SRI offering.  The portfolio consists of ETFs and mutual funds managed by high-quality SRI investment managers.  Sand Hill employs the same rigorous manager due diligence process used for our traditional portfolios to identify those SRI managers who are best equipped to be successful investing in the SRI space – both from an investment and a philosophical perspective.

Socially Responsible Investing involves integrating environmental, social and governance (ESG) criteria into the investment analysis and decision-making process.  Stocks and bonds are evaluated in much of the same way they might be in traditional investing, but with an additional ESG lens on the analysis that looks to favor companies meeting specific SRI criteria.

There are pros and cons to be weighed when considering Socially Responsible Investing.  On the positive side, SRI allows certain individuals an opportunity to align their investment portfolio with their personal values.  While exact screens tend to be different from fund to fund, there are some generally agreed upon criteria for what is normally included and excluded in an SRI portfolio.  Environmental criteria screen for companies that have thorough and detailed environmental policies and practices, a successful track record in avoiding and/or dealing with any environmental issues, and a commitment to improve their environmental sustainability going forward.  Social criteria focus on a company’s diversity, its occupational health and safety, and its overall treatment of employees.  And finally, governance criteria screen for companies that have demonstrated transparency and accountability and tend to exhibit a strong alignment of manager and shareholder interests.

There are potential drawbacks when employing an SRI strategy.  One downside is that the exact metrics used to screen each SRI fund tend to be different.  While an SRI screen is employed in all SRI funds, the criteria of the screen may or may not align perfectly with the investor’s values.  In addition, there’s still much debate surrounding the return potential of SRI-exclusive investments versus their non-screened counterparts.  While some argue an SRI screen helps performance by focusing on companies that are debatably less risky given their lack of ESG issues, historical performance results have been mixed, indicating that SRI funds can significantly lag their non-SRI benchmarks.  This underperformance is also due to the fact that SRI funds tend to be actively managed and come with higher fees.

While there are many considerations necessary before embarking on an SRI strategy, Sand Hill is excited to launch an SRI-specific portfolio that broadens our total offering and gives our clients more choice.

Articles and Commentary

Information provided in written articles are for informational purposes only and should not be considered investment advice. There is a risk of loss from investments in securities, including the risk of loss of principal. The information contained herein reflects Sand Hill Global Advisors' (“SHGA”) views as of the date of publication. Such views are subject to change at any time without notice due to changes in market or economic conditions and may not necessarily come to pass. SHGA does not provide tax or legal advice. To the extent that any material herein concerns tax or legal matters, such information is not intended to be solely relied upon nor used for the purpose of making tax and/or legal decisions without first seeking independent advice from a tax and/or legal professional. SHGA has obtained the information provided herein from various third party sources believed to be reliable but such information is not guaranteed. Certain links in this site connect to other websites maintained by third parties over whom SHGA has no control. SHGA makes no representations as to the accuracy or any other aspect of information contained in other Web Sites. Any forward looking statements or forecasts are based on assumptions and actual results are expected to vary from any such statements or forecasts. No reliance should be placed on any such statements or forecasts when making any investment decision. SHGA is not responsible for the consequences of any decisions or actions taken as a result of information provided in this presentation and does not warrant or guarantee the accuracy or completeness of this information. No part of this material may be (i) copied, photocopied, or duplicated in any form, by any means, or (ii) redistributed without the prior written consent of SHGA.


Video Presentations

All video presentations discuss certain investment products and/or securities and are being provided for informational purposes only, and should not be considered, and is not, investment, financial planning, tax or legal advice; nor is it a recommendation to buy or sell any securities. Investing in securities involves varying degrees of risk, and there can be no assurance that any specific investment will be profitable or suitable for a particular client’s financial situation or risk tolerance. Past performance is not a guarantee of future returns. Individual performance results will vary. The opinions expressed in the video reflect Sand Hill Global Advisor’s (“SHGA”) or Brenda Vingiello’s (as applicable) views as of the date of the video. Such views are subject to change at any point without notice. Any comments, opinions, or recommendations made by any host or other guest not affiliated with SHGA in this video do not necessarily reflect the views of SHGA, and non-SHGA persons appearing in this video do not fall under the supervisory purview of SHGA. You should not treat any opinion expressed by SHGA or Ms. Vingiello as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of general opinion. Nothing presented herein is or is intended to constitute investment advice, and no investment decision should be made based solely on any information provided on this video. There is a risk of loss from an investment in securities, including the risk of loss of principal. Neither SHGA nor Ms. Vingiello guarantees any specific outcome or profit. Any forward-looking statements or forecasts contained in the video are based on assumptions and actual results may vary from any such statements or forecasts. SHGA or one of its employees may have a position in the securities discussed and may purchase or sell such securities from time to time. Some of the information in this video has been obtained from third party sources. While SHGA believes such third-party information is reliable, SHGA does not guarantee its accuracy, timeliness or completeness. SHGA encourages you to consult with a professional financial advisor prior to making any investment decision.

Recent Posts

Mar 18, 2024
CNBC Halftime: Portfolio Moves | March 14, 2024
Sand Hill News
Sand Hill News
CNBC Halftime: Portfolio Moves | March 14, 2024

Sand Hill's Chief Investment Officer, Brenda Vingiello, CFA, joins Jenny Harrington on “Halftime Report” to go over their most recent portfolio moves. Brenda's commentary begins

read more
Mar 6, 2024
CNBC Squawk Box: Market Trends | March 6, 2024
Sand Hill News
Sand Hill News
CNBC Squawk Box:  Market Trends | March 6, 2024

Brenda Vingiello, Sand Hill Global Advisors CIO, joined ‘Squawk Box’ to discuss the latest market trends ahead of the opening bell. This content was produced

read more
Feb 13, 2024
CNBC Squawk Box: CPI Report | February 13, 2024
Sand Hill News
Sand Hill News
CNBC Squawk Box:  CPI Report | February 13, 2024

Sand Hill Global Advisors' CIO, Brenda Vingiello, joined Squawk Box to discuss her view on the latest CPI report. This content was produced and provided

read more

Stay up to date, receive email updates from Sand Hill directly to your inbox!