values-based portfolio?
Not necessarily. A values-based investment strategy can still be built with expected returns, diversification, and long-term financial goals in mind.
Our approach combines fundamental screening, evaluating the quality and financial characteristics of companies, with ethical screening, which considers issues such as tobacco, oil, pollution, weapons, and other areas of concern.
The portfolio is also designed in the context of your broader financial picture, including your income, time horizon, tolerance for market volatility, and financial goals. While investment returns can never be guaranteed, the goal is to build a values-aligned portfolio without abandoning sound investment principles.
We begin with the same principles we would use when constructing a thoughtful long-term investment portfolio.
That starts with diversification. Rather than concentrating heavily in one sector or a small group of large U.S. companies, we seek exposure across different areas of the economy and include meaningful international diversification.
We may also incorporate factor tilts toward areas such as small-cap and value stocks.
Once that broader investment universe has been established, we apply ethical screening criteria. These screenings can consider factors such as:
• Pollution and environmental impact
• Fossil fuels and oil exposure
• Weapons-related activities
• Other ethical or values-based concerns
The result is a more selective portfolio designed to balance investment fundamentals with the investor's values.
Yes.
Our values-aligned portfolio generally includes approximately 120–130 companies that are actively monitored. If a company experiences a significant ethical controversy, investigation, liability event, or another issue that violates our screening criteria, it may be removed from the portfolio.
Clients can also request the exclusion of individual companies they personally object to, even if those companies otherwise pass our financial and ethical screens. We can typically accommodate exclusions of up to 10 companies.
However, exclusions should be considered carefully because removing several companies, especially companies concentrated within the same industry, can affect portfolio diversification.
management fees?
There are no additional portfolio management, transaction, or trading fees for our values-based portfolio. The only fee charged is the advisory fee documented in your Investment Advisory Agreement.
This is different from some approaches in which an investor pays an advisory fee and is then placed into ESG or socially responsible mutual funds that also charge their own internal expense ratios.
Those additional fund expenses can reduce investment returns over time.
Our values-based strategy uses a directly managed stock index that we implement and manage ourselves, so there is no separate values-based portfolio fee.
a serious ethical violation?
The portfolio is actively reviewed.
Our investment team performs ongoing due diligence to evaluate both the financial characteristics of portfolio companies and whether they continue to meet our ethical criteria.
If a company becomes involved in an ethical violation that conflicts with those standards, the company can be removed from the portfolio.
This ongoing monitoring means values-based screening is not simply performed once when the portfolio is created. It remains part of the portfolio management process.
values-based portfolio create a large tax bill?
Tax treatment may depend on the type of account holding the investments. You should consult with your tax professional regarding your specific situation.
Investments held within tax-advantaged retirement accounts, such as a 401(k), traditional IRA, or Roth IRA, generally allow portfolio changes without immediately creating capital gains taxes inside the account.
Taxable brokerage accounts require more careful planning.
If an investment has significant unrealized gains, selling the entire position at once could create a substantial taxable capital gain. Instead, several strategies may be considered.
For example, available investment losses may be used to offset gains. In other situations, positions may be gradually sold over time rather than liquidated all at once.
The transition to a values-based portfolio should therefore be coordinated with the investor's broader tax strategy and financial plan.
You are not permanently locked into a values-based investment strategy.
Your portfolio can evolve as your priorities change. That might include adjusting individual company exclusions, modifying your values-based criteria, or moving toward a broader market portfolio.
Any changes should still take diversification and potential tax consequences into account, particularly when investments are held in taxable accounts.
The investment strategy should ultimately reflect both your current priorities and your long-term financial goals.
No. Values are one component of the financial planning process, not a replacement for financial analysis
.The primary objective is still to build a strategy that gives you the best opportunity to reach your financial goals.
That means considering factors such as:
• Investment strategy and diversification
• Taxes
• Estate and legacy planning
• Charitable giving
• Household cash flow
• Debt
• Risk tolerance
• Long-term financial goals
Your personal values and behavioral preferences can help shape the portfolio so that you feel comfortable staying invested in the strategy over time.
For some investors, that may mean using a values-based portfolio, impact investments, or other values-aligned opportunities. For others, a broad-market portfolio may be more appropriate.
The goal is to create an investment strategy that complements your overall financial life while remaining grounded in thoughtful financial planning.
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