We believe that most people have a fundamental desire to help and contribute, to make their community and our world a better place. The Nexus of Change is a way, with very little effort, for us to collaborate and amplify charitable giving locally.
The Nexus of Change is not a company or non-profit; it is a charitable giving initiative created by financial planning and investment management firm Nexus Wealth Advisors in Santa Cruz, California. The Nexus of Change is an informal agreement between Nexus Wealth Advisors and the clients we serve who want to support positive impact in our community.
The Nexus of Change does not obligate participants to give or pay anything. It commits Nexus Wealth Advisors to give back in a coordinated, amplified, and measurable way. Hopefully, it inspires and/or facilitates additional giving and impact from our friends, clients, and business associates.
The importance of value-aligned investing
You “invest” in order to achieve your financial goals, take care of those you love, and live a good life. Your money has an impact in the world. Do you know what it is? Is it intentional? Would you like to have more control over what your investments are supporting?
Aligning how your money is invested with what you feel is important in the world is generally called SRI (Sustainable or Socially Responsible Investing) or ESG (Environmental Social Governance) Investing.
It started a few decades ago with filtering out positions from an investment portfolio that are assessed to have a negative impact on the world or people in it (human rights violations, poor environmental record, oil companies, etc.).
Now, we are able to also specifically include investments that might exemplify values that you want to support (e.g., women in leadership roles, diversity in the workplace, high marks for economic or social impact, etc.).
For example, we may implement a stock portfolio that is indexed to a benchmark (e.g., S&P 500), and then apply positive and negative screens or filters based on your personal value system. We then balance the portfolio by adding in Global Equities, Fixed Income, and Alternatives to create a well-diversified asset allocated portfolio appropriate for your investment objectives and priorities.
Environmental: Environment and climate, animal rights, clean energy
Social: Human rights, addiction, community and politics, weapons, workplace safety, diversity, women in leadership
Governance: Board independence and accountability, transparency, fair executive compensation, anti-corruption policies
Doing well while doing good
Sometimes people think that in order to have their investments aligned with their values, they will have to give something up. We believe, and research demonstrates, that the reality is value-aligned investing doesn’t have to sacrifice performance.
Value-aligned investing is an option available to clients of Nexus Wealth Advisors; it is not a requirement to participate in the Nexus of Change. Whether value-aligned or conventional, it is important that your investment portfolio be congruent with your goals, needs, timeframe, risk tolerance, and overall financial plan.
If you have investable assets of $500,000 or more, we are happy to analyze your portfolio and meet with you to discuss what you own and how it may or may not align with your values and goals. Contact us to schedule a complimentary portfolio review.