What matters most to you? We can help you align your investment portfolio with your values without sacrificing results.

 

Pathstone is not only among the leading advisors for social and mission-related investing, but also an established and recognized thought leader at the industry level, with many of our advisors having more than two decades of experience advising and researching environmental, social and governance (ESG) and impact investing strategies.

 

Our commitment to this space runs deep and wide and is reflected in our fast growth–we have nearly doubled investments in this area in recent years. We continue to dedicate significant resources to provide clients with creative solutions and help them best align their investments with their values and their mission.

 

Pathstone’s ESG and impact investing efforts are embedded within and across the organization. Nearly every advisor has experience working with portfolios that incorporate ESG factors. We also have a dedicated Impact Committee that serves as a resource for advisors who are delivering creative solutions to help meet their clients’ individual needs in the space. Additionally, Pathstone’s senior leadership views ESG investing as a core focus of the firm’s business and is deeply invested in ensuring its success. The firm is putting tremendous resources into the space, as evidenced by the development of an innovative investment platform–Pathstone Portfolio Platform (P-CubedTM) — that offers a lower overall cost structure, while incorporating proxy voting, shareholder engagement, and a comprehensive ESG scoring framework.

Pathstone’s mission is to craft custom solutions to help clients meet their goals and objectives. For clients that have a keen interest in aligning their investments with their values, Pathstone offers a complete portfolio solution that is able to incorporate ESG alignment within public equity and fixed income, private equity and credit, and hedged equity and credit.

 

ESG and impact investing is also fully integrated into Pathstone’s client service. During quarterly reviews advisors will not only review performance and impact but will also provide perspective on new opportunities and the overall ESG landscape. Additionally, Pathstone regularly releases informative communications specific to ESG and impact investing. These include the quarterly Sustainable Investing Highlights which provide ESG clients with insight into the performance and impact of current ESG strategies, new opportunities, and progress and developments made in the ESG and impact space, and the Annual Impact Report which provides an in-depth look into the progress, developments, and overall impact of our ESG strategies.

 

Pathstone’s impact investing capabilities are also incorporated into the Pathstone Portfolio Platform (P-CubedTM), which is a proprietary investment execution methodology that allows investors to hold diverse investments with customization in a single account. P-CubedTM combines rigorous manager selection with the ability to achieve meaningful impact and the transparency provided by proprietary ESG scoring. P-CubedTM provides clients with solutions across: ESG Management & Value Alignment, ESG Directed Proxy Voting, Shareholder Engagement, and Multi-Tiered All-Encompassing Reporting. In fact, our sophisticated reporting system incorporates ESG scoring at the manager and benchmark levels and does so across the portfolio in order to help clients understand how their holdings are measured. In addition to reviewing individual investment strategies at the granular portfolio level, Pathstone also measures intentionality at the manager level by surveying each investment firm as to their intentions, their actions, and their measurement of impact and ESG. Our unique proprietary ESG scoring methodology accounts for equities, fixed income, hedge funds and private equity.

We believe that impact can be achieved—and measured—across a client’s entire portfolio beyond private impact solutions, through investments in traditional fixed income, publicly traded stocks and hedged equity strategies. Our in-house research team identifies specific ESG managers spanning multiple asset classes for inclusion in the Pathstone Portfolio Platform (P-CubedTM). Our dedicated research team integrates a deep focus on ESG and impact investing during their due diligence process, holding these strategies to very high investment standards. ESG and impact strategies undergo the same rigorous due diligence as traditional managers, with a focus on a manager’s impact philosophy, process, and portfolio characteristics. ESG and impact investments are reviewed, approved and monitored by Pathstone’s Investment Committee, which has the responsibility to oversee both impact and traditional investment strategies. We believe this highly discerning and rigorous approach to impact investing will benefit our clients by providing access to high-quality investment opportunities and meaningful impact.

 

We view shareholder advocacy as a core component of ESG and impact investing and recommend several ESG strategies that are highly engaged in this area. Further, we believe that clients, as asset owners, should have the opportunity to raise their voices on issues of concern, both with managers and portfolio investments, and we will actively support clients through this process.

Community investing is also an important component of ESG and impact investing and can be a meaningful way for clients to have local impact. Pathstone’s research team has reviewed a number of Community Development Financial Institution (CDFI) investment opportunities which may be suitable for select clients seeking to maximize their impact.