Sawtooth’s Solution Center:

SRI, ESG, or Sustainable Investment

Why SRI, ESG, or Sustainable Investing?

Socially Responsible Investing (SRI) and Environmental, Social, and Governance Investing (ESG) — now collectively called Sustainable Investing, were once niche investment philosophies with only a small representation in the greater investment universe.  But as Morningstar points out, times have changed.

“During 2020, flows into sustainable open-end and exchange-traded funds available to U.S. investors reached $51.1 billion. That was a significant increase over 2019 when flows were $21.4 billion, and a nearly tenfold increase over 2018 when flows were $5.4 billion.”

Wall Street has participated in this trend as well.  According to the US SIF Foundation’s 2020 biennial Report on US Sustainable and Impact Investing Trends, Sustainable Investing assets now account for $17.1 trillion—or 1 in 3 dollars—of the total U.S. assets under professional management. 

Sustainable Investing Options

Sustainable Investing is another area available to your clients through unified managed account (UMA) customization, and Sawtooth has made it easy for you to start offering and implementing these solutions.  There are multiple ways to implement Sustainable Investing on the Sawtooth platform:

1

Enroll your clients in one of the many preconfigured ETF or mutual fund models that focus on SRI, ESG, or even faith-based allocations.

2

Include Sustainable Investing oriented mutual funds, ETFs, and/or SMAs in the custom model allocations you build on the Sawtooth platform.

3

Employ Sawtooth’s SRI and/or ESG screening services with “standard” SMA allocations or with Direct Indexes.

This last option offers the most flexibility for creating a customized client solution. Unlike sustainability-oriented mutual funds, ETFs or SMAs, this is not a “one size fits all” product. Your client can dictate which issues are important to them, and we can build a portfolio tailored to their preferences. Simply allocated the client’s assets as you normally would and then enroll the client’s account in Sawtooth’s SRI/ESG screening services. We will take care of removing any positions in the portfolio that violate the client’s sustainability mandates.

What’s the Next Step?

Sawtooth Solutions employs a consultative process when onboarding new advisors to the platform. We will be happy to work with you in designing solutions appropriate for your practice and your clients. Also, a quick demonstration of our Sawtooth Proposal and Research Center (SPARC) will show you how easy it is to exceed your clients’ expectations with UMAs and Sustainable Investing. To set up a meeting click here:

This information is intended for general informational purposes only; it is not investment advice. The material on this website does not consider the specific investment objectives, financial situation, needs or special circumstances of any particular person. This information does not represent the suitability of any strategy, financial product, security, or other instrument. Past performance is not a guarantee of future performance.

Sawtooth Solutions, LLC (“Sawtooth”) is an investment adviser registered with the U.S. Securities and Exchange Commission. The information on this website is for informational purposes only and is intended as an overview of the services offered by Sawtooth to financial advisors. Nothing contained on this website is a solicitation for investment. Any individual investor seeking more information should consult with their financial advisor.

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