Solution Center:

SRI, ESG, or Sustainable Investment

Why SRI, ESG, or Sustainable Investing?

Socially Responsible Investing (SRI) and Environmental, Social, and Governance Investing (ESG) — now collectively called Sustainable Investing, were once niche investment philosophies with only a small representation in the greater investment universe. But as Morningstar points out, times have changed.

“During 2020, flows into sustainable open-end and exchange-traded funds available to U.S. investors reached $51.1 billion. That was a significant increase over 2019 when flows were $21.4 billion, and a nearly tenfold increase over 2018 when flows were $5.4 billion.”

Wall Street has participated in this trend as well. According to the US SIF Foundation’s 2020 biennial Report on US Sustainable and Impact Investing Trends, Sustainable Investing assets now account for $17.1 trillion—or 1 in 3 dollars—of the total U.S. assets under professional management.

Sustainable Investing Options

Sustainable Investing is another area available to your clients through unified managed account (UMA) customization, and Simplicity Solutions has made it easy for you to start offering and implementing these solutions. There are multiple ways to implement Sustainable Investing on the Simplicity Solutions platform:

1

Enroll your clients in one of the many preconfigured ETF or mutual fund models that focus on SRI, ESG, or even faith-based allocations.

2

Include Sustainable Investing oriented mutual funds, ETFs, and/or SMAs in the custom model allocations you build on the Simplicity Solutions platform.

3

Employ Simplicity Solutions’s SRI and/or ESG screening services with “standard” SMA allocations or with Direct Indexes.

This last option offers the most flexibility for creating a customized client solution. Unlike sustainability-oriented mutual funds, ETFs or SMAs, this is not a “one size fits all” product. Your client can dictate which issues are important to them, and we can build a portfolio tailored to their preferences. Simply allocated the client’s assets as you normally would and then enroll the client’s account in Simplicity Solutions’s SRI/ESG screening services. We will take care of removing any positions in the portfolio that violate the client’s sustainability mandates.

What’s the Next Step?

Simplicity Solutions employs a consultative process when onboarding new advisors to the platform. We will be happy to work with you in designing solutions appropriate for your practice and your clients. Also, a quick demonstration of our Simplicity Solutions Proposal and Research Center (SPARC) will show you how easy it is to exceed your clients’ expectations with UMAs and Sustainable Investing. To set up a meeting click here:

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Investment advisory and sub advisory services offered through Simplicity Solutions, LLC, a SEC Registered Investment Adviser. Simplicity Solutions is wholly owned by Simplicity Financial Marketing Holdings, Inc. and an affiliate of Simplicity Wealth, LLC, a SEC Registered Investment Adviser. Please review the ADV 2A for complete details. *TD Ameritrade, Inc. is one of the firms that we use to custody our client assets. TD Ameritrade, Simplicity Solutions, and the other entities named are separate and unaffiliated firms, and are not responsible for each other’s services or policies. TD Ameritrade does not endorse or recommend any advisor and the use of the TD Ameritrade logo does not represent the endorsement or recommendation of any advisor. Brokerage services provided by TD Ameritrade Institutional, Division of TD Ameritrade, Inc., member FINRA/SIPC. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. Used with permission. *Salesforce, Salesforce.com and others are all trademarks of Salesforce.com and are used here with permission. Morningstar® Managed Portfolios^SM are model portfolios offered to Simplicity Solutions, LLC by Morningstar Investment Services LLC, a registered investment adviser and subsidiary of Morningstar Investment Management LLC. Morningstar Managed Portfolios are intended for citizens or legal residents of the United States or its territories and can only be offered by a registered investment adviser or investment adviser representative. Simplicity Solutions has full discretion to invest client accounts in accordance with a Morningstar Managed Portfolio model or to deviate from the model. In no way should the use of a Morningstar Managed Portfolio by a Simplicity Solutions client be viewed as advice or establishing any kind of advisory relationship with Morningstar Investment Services, who is not acting in the capacity of advisor to individual investors. Morningstar Investment Services is not affiliated with Simplicity Solutions, LLC. Morningstar Investment Services does not guarantee that the objectives of a portfolio will be achieved or that negative returns can or will be avoided in any of its model portfolios.