Looking for DST Vision? Visit our new
financial advisor center
Sustainable offers investors an opportunity to [1] pursue their financial goals and [2] invest in a manner consistent with their values.
Today, a broad range of individuals and institutions depend on Sustainable strategies to pursue their financial objectives - to invest in companies whose operations they support, to influence companies that need to change, and to invigorate local communities.
Please read further to discover how Sustainable investing can help match your investment objectives with your values. Speak to your financial advisor to determine if Sustainable investment strategies from Sentinel may be right for you.
A strategy for financial growth
The numbers speak for themselves. Sustainable and socially responsible investing continues to grow - from the number and variety of funds offered, to the amount of assets invested.
According to the Social Investment Forum's 2007 Report on Socially Responsible Investing Trends in the U.S., SRI assets increased more than 18 percent while the broader universe of professionally managed assets increased less than 3 percent. The study also cites that more than 11 percent of assets under professional management are invested using SRI investment strategies.
Today, more than ever, individual and institutional investors want to know more about the companies they are invested in. Fundamentals alone no longer suffice. Investors are interested in knowing how companies interact with employees, customers, suppliers and the communities where they operate, how they manage environmental issues; and how a company's board of directors governs.
Managing risk A core Sustainable investing strategy is to seek competitive long-term returns by investing in socially responsible companies in an effort to reduce downside risk. Research analysts and investment managers conduct extensive research into the corporate, social and environmental performance of the companies considered for investment. This broad focus unearths potential risks that balance sheets and income statements alone cannot show.
Finding opportunity Sustainable investing analysis does more than identify red flags - it spots white knights. A deep examination of companies considered for investment often uncovers business practices that are thoughtful and progressive, and also may contribute positively to long-term investment performance.
Screening to match your values
Sentinel Sutainable Investing focuses on the integration of traditional fundamental analysis with our in-depth assessment of select social and environmental factors.
Social filters Sentinel's portfolio managers employ various screens to build investment portfolios that seek to match shareholder values. Many managers focused on sustainable and socially responsible investing employ one or more exclusionary screens to eliminate companies that produce an undesired product, such as alcohol, tobacco or weapons. At Sentinel, we take the process a step further by employing qualitative screens, to help identify companies that:
While no investment is ever made for social reasons alone, we believe our screening process provides a unique and more comprehensive view of the companies we consider for investment. We believe evaluating a company's record of corporate responsibility helps us minimize investment risk and contributes to investment success by identifying more forward-thinking and potentially more promising companies.
Shareholder activism
The terms "investing" and "shareholder value" have meaning beyond the purely financial. As part owners of the companies in which they invest, many sustainable and socially responsible investments shareholders, work to encourage companies to improve their corporate, social and environmental practices.
The power of the proxy If you hold direct investments in companies, you are probably familiar with proxy statements. Don't throw them away! You are entitled to cast your vote on proposals that are submitted for shareholder approval at annual and special meetings. When read carefully, proxy statements can reveal whether management's interests coincide or conflict with shareholders' interests.
Banding together with like-minded investors greatly increases the power of the single proxy voter. This is what happens when you invest in a mutual fund focused on sustainable investing. The chorus grows stronger still when different sustainable and socially responsible mutual funds work in concert with one another and join forces with large pension funds, state treasurers' offices and non-profit organizations that share a common interest.
Ideally companies will choose to listen to and work with shareholders to address social, environmental and corporate governance issues. Better still are those instances where shareholder resolutions are withdrawn or are never filed in the first place because management agrees to move forward on shareholder concerns.
At Sentinel, the power of the proxy is very important and a responsibility we take very seriously.
Sentinel's sustainable investing
Corporations can and should contribute to their local communities. If you are a shareholder, either directly or indirectly through a mutual fund, you can be an active force in steering that company's community investment efforts and dollars.
Many companies make modest charitable contributions, but Sustainable and socially responsible investors often look for more than this. Sentinel sustainable investing screening process can identify companies making a real difference for their communities. For example, community banks, quasi-governmental entities and credit unions often help support affordable housing, job creation and lending to minority and women entrepreneurs.
Companies can demonstrate good corporate citizenship in a number of ways. Local organizations and charities may benefit from the donation of unique goods and services, or even volunteerism.
Learn more. Ask your financial advisor for more information about Sentinel Funds.
Back To Top
