Latest Economic Review: Sunpointe Illuminations

The G in ESG: The Key Factor

Responsible or Environmental, Social and Governance (ESG) designated investments have shown explosive AUM growth in the past decade to reach twelve trillion dollars1. This is approximately 25% of all professionally managed assets in the US and this proportion is growing. While some of the E-, S- or Gfactors may be contentious, there is an agreement between the academic and investment community on the role of the ‘governance’ factor in driving financial performance. In our view, incorporating investments with good governance characteristics in a portfolio a) enhances quality by reducing risk of adverse events and b) can improve returns in the long term (five years or more). As such, we at Sunpointe Investments have designed a strategy to isolate this factor for those clients who wish to incorporate it into their investment strategy. We understand that each client’s views and investing needs are different and therefore, we provide our solution through a simple and transparent, yet technologically superior, online investing platform that eliminates key challenges faced by investors. Please contacts us if you would like to explore this solution or discuss your ESG investing topics with us.