Personal Capital launches socially responsible investing
Wealth tech company Personal Capital is making it easier for investors to put their money in causes that are important to them with the launch of its Socially Responsible Personal Strategy, reports Julie Muhn at Finovate (FinTech Futures’ sister company).
The New York-based company is offering clients the ability to select a personalised socially responsible investment strategy with the same pricing structure as the rest of its offerings – a single, flat fee.
Personal Capital has teamed with Sustainalytics to screen equity holdings in the US for three factors – environmental, social, and governance (ESG) – to find the best companies in each group. Just like Personal Capital’s core portfolio offerings, the new Socially Responsible Personal Strategy offers exposure to all six major liquid asset classes and individual stocks and uses Personal Capital’s Smart Weighting methodology to balance exposure to size, style, and sectors within the US equity asset class.
In addition to the ESG factors, clients can use advanced customisations to exclude any stock or sector that they do not want to hold. In fact, 30% of Personal Capital portfolios do so. In total, the company manages more than $6.5 billion in assets and tracks over $500 billion for 1.6 million registered users.
In the past 12 months, Personal Capital has nearly doubled its assets under management. At the end of last month, the company surpassed $6.5 billion in assets under management with an average client balance of more than $430,000.
