INVESTMENT PLANNING

What Is Socially Innovative Investing?

A new strategy combines socially responsible investing and performance.

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U.S. Trust recently unveiled a new investment strategy called Socially Innovative Investing. The strategy focuses on identifying U.S. corporations with strong track records of human capital engagement, environmental stewardship and corporate philanthropy as well as performance.

“One myth of social investing is that, almost by definition, it underperforms the broad market — that investors have to sacrifice strong returns in order to support their values,” says Jason Baron, the portfolio manager and architect of the strategy. “To counter this misconception, using our proprietary social due diligence model, we comb the Standard & Poor’s 500 for equities and fixed income that not only meet social criteria but also have excellent fundamentals and the potential to create long-term value.” The strategy, in short, seeks good corporate citizens that are also strong companies.

“We track many gauges of social responsibility and investment performance over time and require our included companies to measure up in both regards,” Baron says. For more information on the Socially Innovative Investing strategy, please contact your U.S. Trust advisor.

Opinions expressed in this article are those of the featured participant/U.S. Trust and may differ from those of Bank of America Corporation and its affiliates. This article is designed to provide general information about ideas and strategies. It is for discussion purposes only, since the availability and effectiveness of any strategy is dependent upon your individual facts and circumstances. Information in this article is not intended to constitute legal, tax or investment advice. You should always consult your independent attorney, tax advisor, investment manager and insurance agent for final recommendations and before changing or implementing any financial, tax or estate planning strategy.