Page 12 - Nebraska Report January/February 2012

Finding & Evaluating Choices
Finding & Evaluating Choices

for Responsible Investing
for Responsible Investing

by Tyler Mainquist Morningstar.com have been standardized for easy com-

Building on my previous essay which This free website provides access to parisons across companies and industries;
the same is not yet true for sustainability
provided an overview, this one discusses their vast database. For decades Morning- data. Finally, the globe ratings primarily
options when an investor wants to avoid star has been assigned a fund ‘star rating’ apply to equity funds, which leaves out
destructive products or industries; or ranked against its peers in the same asset bonds, etc. It is still an excellent resource,
when supporting companies that are category (e.g., ‘large cap growth’) over and Morningstar’s sustainability team has
working to address system problems. the past 3 years, 5 years, etc. Morningstar been doing great work.
The easiest way to find suitable now has a ‘globe rating’; a higher score
investment choices is to consult a finan- indicates that a fund has more assets in- FossilFreeFunds.com
cial professional, since they should have vested in companies that score well in the This site from the nonprofit “As You
additional tools (more on that below). Sustainalytics ESG methodology. In both Sow” was one of the first to collect and
Resources do exist for individual inves- cases, they divide funds into five groups report whether a fund held oil and coal
tors, however; most are for mutual funds along a bell curve distribution, with the companies. They assign an overall grade
and exchange traded funds (ETF) as best scores receiving 5 stars or globes. from ‘A’ to ‘F’ and the display quickly
opposed to individual companies. In all Therefore, an optimal fund to look shows whether a fund holds any of the
cases, please remember that investment for may be 5 stars and 5 globes. In prac- worst offenders in the “Carbon Under-
decisions should also include your time tice, not so obvious. The free site has lim- ground 200” or the “Macroclimate 30”.
horizon, your tolerance for risk, and the ited search options; more for inspecting They have a search function to specify
intended purpose of the money being a fund that you already know about. The factors and find the highest scorers.
invested. Sustainalytics methodology is but one As You Sow publishes similar sites for
way to evaluate the data: financial reports

Align your principal

with your principles.

Learn more about SRI investing.

Sustainable. Responsible. Impact.

402-423-4022
tmainquist@aicinvest.com
mainquistSRI.com

Tyler Mainquist is a Registered Representative and Investment Advisor Representative offering securi-
ties and investment advisory services soleyly through Ameritas Investment Corp. (AIC). Member FINRA/
SIPC, a registered broker/dealer and registered investment advisor. AIC and Central Financial Service
(CFS) are not affiliated. Additional products and services may be available through Tyler Mainquist or
CFS that are not offered through AIC. Representatives of AIC do not provide tax or legal advice. Please
consult your tax advisor or attorney regarding your circumstances.
JANUARY/FEBRUARY 2021 NE REPORT, P. 12