My Catholic Life! recommends Savant Capital Management as an excellent independent, fee-only investment advisor. Savant can also assist you in aligning your portfolio with your faith. Invest with a clear conscience while reaping the benefits of one of today’s leading investment advisory firms.
OVERVIEW FROM SAVANT
- Investors increasingly want their investment portfolios to be aligned with their personal values.
- Personal philosophies vary widely, but frequently reflect views on health care matters such as abortion and contraception, weapons of mass destruction, and human and/or labor rights.
- Today over $3 trillion is professionally managed using social-moral criteria.
- Not all socially-screened investment products are necessarily good ones. Some may not perform according to an investor’s expectations, may charge a very high fee, or may not have sufficient diversification. Many actually ignore or directly conflict with Catholic social moral teachings, as outlined by the US Conference of Catholic Bishops.
- Savant’s goal is to maintain an ideal balance of investment and values-based objectives:
Investment objective: Maximize investment returns while avoiding undue volatility and risk.
Values-based objective: Utilize investment holdings that are selected keeping in mind the US Conference of Catholic Bishops’ “Socially Responsible Investment Guidelines.”
- Savant conducts ongoing extensive research on the social-moral investment products available in the industry. We have over 20 years of experience working with Catholic institutions to meet investment and social moral goals.
- Our strategy incorporates broad social-moral criteria as described in the next section.
- The end result is a social-moral portfolio with characteristics similar to the standard (non-screened)
Savant model portfolios:
Strategy focused on asset allocation
CATHOLIC SOCIAL-MORAL CRITERIA
- Several funds utilized are actively screened by the fund managers to avoid areas of concern.
- In order to get the right asset mix, a few funds are used that are not screened by the fund managers. Savant analyzes the underlying holdings of these funds using software from a leading social-moral research firm, IW Financial, to ensure there are no significant holdings in the areas of concern.
- Some asset classes do not require screening, as they naturally do not have securities in areas of concern such as REITs, commodities, and government bonds.
The social-moral strategy is structured to avoid companies in the following areas:
Abortion/Contraception/Embryonic Stem Cells
Serious Human Rights Violators
Military/Weapons of Mass Destruction /Landmines
RISK AND RETURN
- The Catholic social-moral strategy is constructed with the same 15 asset classes and target allocations as those in standard (non-screened) portfolios managed by Savant.
- The specific investments that incorporate social screening are managed by the same highly-regarded fund companies we utilize in our standard portfolios including Vanguard, Dimensional Fund Advisors (DFA) and PIMCO.
- With similar asset classes, allocations, and investment managers, we expect the social-moral portfolios to perform similarly to the standard Savant portfolios over the long run.
- The average fund expenses for the social-moral strategy are slightly higher than non-screened funds, but overall very similar to those of our regular portfolios.
For more information on Catholic Values Investing, visit www.savantcapital.com
Source: “2010 Report on Socially Responsible Investing Trends in the United States”, Social Investment Forum Foundation. Savant Capital Management is a Registered Investment Advisor. Savant’s marketing material should not be construed by any existing or prospective client as a guarantee that they will experience a certain level of results if they engage Savant’s services. The information provided should not be construed as personal investment advice.