Sustainable SMAs: Gitterman Wealth Management Adds ESG Based Separately Managed Accounts

Gitterman Wealth Management is proud to announce the addition of Jordan Kimmel to the firm as a portfolio manager overseeing our ESG SMA Portfolios. With over 30 years of experience in the financial services industry, both as a retail broker and fund / portfolio manager, Jordan is the creator of the FACTS® Stock Selection Process, which employs a unique holistic and quantitative analysis on the integrity and sustainability of over 2,000 US companies.

Jordan’s FACTS® method identifies organizations with:

Financial Strength
Accounting Conservativeness
Corporate Integrity
Transparency
Sustainability / ESG (Environmental, Social, and Governance) Metrics

FACTS® analyzes the largest and most liquid companies, and also incorporates Jordan’s Magnet® Investment Strategy, one of the first strategies of its kind to combine the best tenants of value, growth, and momentum of company fundamentals.

Magnet® has been licensed to several leading institutions around the country, and Jordan appears frequently on several major financial TV networks, including CNBC, Fox Business, Bloomberg, and ABC News, among others.  He has also been quoted extensively in several publications, including ForbesThe Wall Street Journal, and U.S. News & World Report.  He is the author of two books, the most recent being “The Magnet Method of Investing.” (Wiley, 2009).

A few thoughts from Jordan are below:

Jordan Kimmel: Over 15 years ago, I created The Magnet® Stock Selection Process. At that time, it was considered by many unreasonable and even impossible to blend value, growth, and momentum criteria into a single model.

While the Magnet® model has been able to find companies “hitting on all cylinders” and often identifies “current market leaders,” this approach leads to high turnover and therefore is not acceptable to many longer term and institutional investors. My years of experience with Magnet® led me to think about another way to blend other measurements that will identify companies that are considered “trustworthy.”

What if companies could be evaluated by their trustworthiness? What if we could identify companies that had a combination of great financial fundamentals and were also ranked highly on measurements of corporate governance and treatment of their stakeholders?

It is one thing to talk about trust – and it’s another thing to attempt to measure it. While the discussion about corporate trust has increased in the media, the subject has actually been studied deeply over the last several decades.

The beginning of my endeavor to measure trust began over 7 years ago, when I started to seek out the top experts in the “trust field,” so to speak. As I did, several words began surfacing repeatedly—such as transparency, accountability, and sustainability. And so we began searching for groups that were involved with measuring public companies based upon these criteria.

Happily, we found several groups who were compiling data on hundreds of issues, such as the transparency of corporate earnings, independence of corporate boards, relationships of employees to their companies, and company policies and programs in relation to their communities and the environment.

After almost two years of working with these independent professional organizations, we were able to bring together and blend our holistic approach into a new way of ranking public companies—and we call it FACTS.®

This new SMA model evaluates companies on Financial Stability, Accounting Stability, Corporate Governance, Transparency, and Sustainability. Hundreds, and in some cases thousands of data points are taken into account for this unbiased process, and we have seen over time that companies ranking highest in corporate responsibility are often outperforming the market.

FACTS® looks for companies that are “doing well by doing good.”  My experience has shown that trustworthy companies are generally less risky and often more profitable. By blending fundamentals and “extra financials,” I do believe that we can rebuild trust in business and the markets.

Gitterman Wealth Management

SMART (Sustainability Metrics Applied to Risk Tolerance)®

Sustainable, Impact, and ESG Investing Services

for Individuals and Financial Professionals

Gitterman Wealth Management is an industry leader in the Sustainable, Impact, and ESG (Environmental, Social, and Governance) Investing space.  For more information about our investing services for individuals, or our research, education, and investing services for financial professionals, please click on the above links, or visit www.GittermanWealth.com and click on Sustainable Investing.

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