Springfield Business Journal_2019-08-23

G I V I N G A DV I S E R S U M B A D D R E S S 1 1 5 0 E B att l e f i e l d , S p r i n g f i e l d , M O 65 8 07 P H O N E 41 7. 8 9 1 . 2 1 0 0 W E B S I T E U M B.co m CHAIRMAN AND CEO GREATER MISSOURI REGION To ny M ay f i e l d B OA R D O F D I R EC TO R S I n d i v i d u a l a d v i s o r y b o a rd s s e r ve t h e co m - m u n i t i et s o f S p r i n g f i e l d , J o p l i n a n d C a r t h a g e. UMB’s interpretation of ESG factors and the application of this process is subjective and may evolve over time. Each fund held within the ESG portfolio exhibits varying risk and return characteristics due to the potential diversity of securities held within each fund and other criteria outlined in the prospectus. Additionally, due to the screening process for funds held within the ESG portfolio, portfolio holdings will differ from the applicable benchmark and the returns will vary accordingly, either outper- forming or underperforming at any time. All investments involve risk, including the possible loss of principal. Past performance is no guarantee of future results. Not FDIC Insured * No Bank Guarantee * May Lose Value SPRINGFIELD BUSINESS JOURNAL How can I make a difference? It’s a question people are increasingly asking them- selves. And more importantly, it’s one they’re acting on. From monitoring energy consumption and estab- lishing environmental practices, to evaluating the products they purchase and the organizations they support, people are trying to leave a positive imprint however they can. As more and more people look to investing as an extension of their social values, understanding what it is and how to start is critical. Values investing: Something old and something new A values approach to investing has existed for decades, but it has evolved dramatically. For years, investors have been able to request portfolios that exclude specific goods, services or connections if they engage in or support certain activities or prac- tices. For instance, some investors would request screens for products like tobacco or alcohol. Adding to that practice, environmental, social and corporate governance (ESG) investments include funds based on the positive impact the company’s ESG principles can have on their financial perfor- mance. This can translate to investors focusing on a company’s commitment to sustainable business practices, or diversity in the workplace. As such, ESG investing allows investors to customize their approach by excluding and/or including funds based on their personal values. What does ESG investing look like? Understanding the design of an ESG portfolio is a common need for investors new to the space. The basics are simple, but the implementation can be complex, because ESG investing can look however you want. Because of this, it’s important to consider these best practices. • Work with an ESG advisor Experience and knowledge matter in ESG investing. Find an ESG advisor who is knowledgeable in the space and can help you decide if it’s the right option for you. They will help you determine at what invest- ment level you want to begin, if there are specific values you want to support and/or exclude, and how an ESG strategy fits into your overall investment objectives. • Ask about approach Next, ask the advisor questions about their specific approach, including how they identify ESG funds. Experts in this space will have specific inclusion- ary and exclusionary software, along with industry knowledge, that can identify ESG qualified funds and fund managers that have overlying ESG mandates. Advisors adept in this space can help you determine parameters as well. Do you want to focus on overall good or screen to a specific issue like water or fossil fuel use? Narrowing to specific goals adds com- plexity, so this is an area where an ESG advisor can provide additional value. • Get in the details Ask about your advisor’s fund review process. These investments should be managed with the same rigor as the rest of your portfolio, which means regular evaluation of the fund holdings, including the under- lying funds, from both a risk perspective and an ESG screen to ensure these practices are being followed as time goes on. Having an individual who is committed to consistent, methodical analysis will ensure your values invest- ing stays in-line with your purpose and your overall investment plan. • Request the research Advisors should be able to provide reporting to not only see how your portfolio is performing, but also to see how it’s positively affecting the areas you’ve targeted. For example, ask if there is an annual impact report that shows key data, such as how your investment helped enact change. • Take the next step: invest responsibly Once all your questions have been answered and you have a clear strategy in place, put your money to work. Be confident in the due diligence you com- pleted and take a moment to appreciate the possi- bilities ahead—for you personally and for the areas you have chosen to support. Not only have you made an informed and thorough investment decision, you’ve also invested with purpose. You’ve made a difference. Top Row: Matt Keeth, Matt Tabor, Byron Pierce, Justin Butler. Middle Row: Jeannie Clayton, David Compere, Brandon Bowenschulte, Tylor Willis Bottom Row: Ann Marie Baker, Shelly Addington 14 2019 GIVING GUIDE