Personal Capital Reaches Milestone of $1 Billion Assets Managed In ESG Portfolios
Record asset inflows helped fuel 109% year-over-year growth in total assets managed in socially responsible portfolios, marking a shift in investors appetite for more sustainable investment approaches.
REDWOOD SHORES, Calif., June 16, 2020 /PRNewswire/ -- Personal Capital, a remote-first, industry-leading registered investment advisor and digital wealth manager, announced today a major milestone since the introduction of its Socially Responsible Personal Strategy® Investment portfolios: reaching $1 billion assets under management since the portfolios' inception in 2018.
"We've seen assets managed in our ESG portfolios more than double year-over-year in every month since inception. There is clearly a growing interest in those looking to invest more sustainably and responsibly," says Brendan Erne, Director of Portfolio Management at Personal Capital. "Amidst the market volatility surrounding COVID-19, we've actually seen an increase in the percentage of Personal Capital's assets under management that are invested in our ESG portfolios, as May was our best month yet with more than one in five dollars going into ESG. Due to the importance of striving for positive change and safety, it seems many investors are showing their support for more socially conscious strategies."
Since 2018, Socially Responsible Personal Strategy is Personal Capital's turnkey solution for investors built with best-in-class ESG-ranked U.S. stocks, and our proprietary Smart Weighting™ methodology. In partnership with Sustainalytics, a global leader in ESG and Corporate Governance research with a history spanning more than 25 years, Personal Capital utilizes the firm's ESG ranking/scoring system when constructing and evaluating the companies to be included in portfolios.
"We use a combination of exclusive and inclusive filters, which allow us to avoid controversial categories and simultaneously seek out companies more proactively managing ESG issues," said Erne. "Given our use of individual stocks, it can offer greater tax efficiency and opportunities for customization than off-the-shelf mutual funds and ETFs."
Socially Responsible Personal Strategies include all the benefits of the company's Personal Strategy® approach, including optimal asset class mixes that aim to maximize return and reduce risk, the Smart Weighting methodology within U.S. equities, tax management, and disciplined rebalancing. The incorporation of ESG metrics primarily applies to the U.S. and International Equity asset classes within the portfolio.
The company also announced today a collaboration with One Tree Planted and is committed to planting a tree for the next 2,500 future clients who invest assets into the Personal Capital Socially Responsible Personal Strategy, as part of an ongoing effort to give back and positively impact the environment.
"Personal Capital is a purpose-driven organization built on a foundation of transparency, accountability, collaboration and trust," said Jay Shah, Chief Executive Officer at Personal Capital. "We are a brand that stands for doing the right thing, always. Though these are small actions, we hope giving back to help environmental causes with the donations of trees will help increase the involvement of communities as we all strive to create positive change."
ABOUT PERSONAL CAPITAL
Personal Capital is a remote-first, industry-leading digital wealth management company. We do the right thing by the everyday investor by taking a holistic, 360-degree approach to money management. Our state-of-the-art tools and technology provide investors with a complete financial picture and our registered investment advisors provide expert guidance, and logical strategies, based on a personal understanding of an investor's financial picture and goals. We currently manage more than $12.3 billion in assets and have offices across the U.S. For more information, please visit http://www.personalcapital.com or connect with us on Facebook, Twitter or LinkedIn.
Advisory services are offered for a fee by Personal Capital Advisors Corporation, a wholly owned subsidiary of Personal Capital Corporation. Personal Capital Advisors Corporation is a registered investment advisor with the Securities and Exchange Commission ("SEC"). SEC registration does not imply a certain level of skill or training. Investing involves risk. Past performance is not a guarantee or indicative of future returns. The value of your investment will fluctuate, and you may gain or lose money.
ABOUT ONE TREE PLANTED
One Tree Planted is a 501(c)(3) nonprofit on a mission to make it simple for anyone to help the environment by planting trees. Their projects span the globe and are done in partnership with local communities and knowledgeable experts to create an impact for nature, people, and wildlife. Reforestation helps to rebuild forests after fires and floods, provide jobs for social impact, and restore biodiversity. Many projects have overlapping objectives, creating a combination of benefits that contribute to the UN's Sustainable Development Goals. To learn more, visit onetreeplanted.org
Contact Information
Personal Capital PR
Alex Bae
[email protected]
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