At Aneuvia, we believe in democratizing financial wellness and investment advice for the betterment of companies, communities and individuals. Here we share our insights, point of view and advice on global impact investing, corporate diversity and inclusion, new financial market trends, impact investment funds and more. 

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Why You Should Rollover Your 401k or 403b into an ESG Portfolio
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You may not know this, but you can be an ESG investor even if the only form of investing that you’re active in is retirement savings. If you have a 401k or a 403b, you can roll over your funds into ESG portfolios, which is a great way to demonstrate your values through your investments. 

ESG investing is tethered to the philosophy of ‘sustainable investing.’ It involves researching and factoring in environmental, social, and governance issues, in addition to the usual financials, when evaluating potential stocks. By investing your funds into ESG portfolios, you increase corporate accountability. How? As a socially-conscious individual, you can leverage your shareholder position to have a voice and influence corporations to act in the best interest of the environment, society and governance through proxy voting.

Aside from the ability to create change, you’ll also enjoy strong returns. A study from the Financial Times found that approximately six out of ten sustainable funds delivered higher returns than their conventional equivalents over the past decade. Furthermore, according to Morningstar, ESG-focused “sustainable funds" saw net inflows of more than $10 billion in capital during the second quarter of 2020. This brings the year-to-date inflow into ESG investing funds to $20.9 billion. The full-year record in 2019 was $21.4 billion so ESG-focused funds are projected to beat the record by year-end, which shows the future promise of socially conscious investing.

Given the rise of ESG investing, it is smart to incorporate sustainable funds in your 401(k) plans. In fact, many companies recognize that including sustainable portfolio options may be attractive to employees. If your company plan doesn’t include ESG options, you can look up the ESG ratings for the funds they do offer (Some funds have high ESG ratings even if they aren’t advertised as such). Morningstar has a widely trusted sustainability rating system that you can access with a free trial. If you have a 401k or 403b Rollover due to a change in employment and are looking to invest it for impact, please reach out, we'd love to assist you. 

We all have a responsibility to care for the planet, the communities we live and work in. It’s incumbent on all of us to be responsible citizens of our society and reflect that shared sense of responsibility through our investment choices. ESG investing is lucrative - not only creating growth, but also fueling good - creating a more sustainable, conscious world. 

How to measure the ROI of diversity programs
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How to measure the ROI of diversity programs

It’s evident there is financial gain to be had by encouraging diversity and inclusion in your workforce. The Wall Street Journal reports that the most diverse companies (12%) outperform the least diverse firms (8%) when it comes to share price and operating results. 

However, creating a diverse business requires more than just good intentions - it takes strategic program implementation, accountability and setting realistic KPIs. Here’s how to properly measure diversity programs to create a more competitive and culturally-rich workplace. 

First, define the type of return you hope to achieve. 

It’s easy to implement a few programs as quick wins, but first it’s important to assess the current state of diversity and inclusion at your organization. Uncover the problem areas and apply data at all stages - surveys, focus groups, exit surveys, Glassdoor and LinkedIn reviews, analyst ratings and more. Then, define the type of return you hope to achieve. Common KPIs are: 

  • Reducing employee turnover
  • Increasing employee satisfaction 
  • Increasing retention levels
  • Growing leadership diversity 
  • Reducing unconscious bias

Focus on holistic program development and consistent accountability.

Data enables you to create accountability and establish a baseline through which success or opportunities for improvement can then be quantified. It also allows you to create links between programs developed and overall business performance. Remember that diversity isn’t just  an HR initiative. As you’re developing programs, remember that it’s important to create a cross-functional task force that acts as a complementary partner in developing, implementing, sustaining and reporting on programs. 

Return on Diversity (ROD) framework 

Many corporate D&I programs simply fail to deliver tangible business results and stock performance. Many times, this is due to misalignment between KPIs and performance. Aneuvia’s proprietary Return on Diversity framework addresses these issues to deliver greater workplace diversity, investment performance for companies. 

ROD Framework_with Branding

Our integrated approach provides actionable insights to C-suite and Board members on how to raise diversity across the board for better business outcomes. Using our proprietary ROD framework, we score companies on two variables: gender diversity and transparency. Based on this score, a targeted subset of companies are selected to comprise our high-conviction portfolio. 

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