The Glass Jacobson Financial Group automated investment program (AIP) provides globally diversified, low-cost portfolios built by a team of investment management analysts, tax advisors, and financial planners. As a result, our portfolios add long-term value to clients across multiple market cycles.
We tailor our portfolios into different themes, providing clients greater choice for selecting a strategy that is compatible with their life values. Clients can opt between Traditional investing (Factor-Based and Indexed portfolios) and Socially Responsible Investing (ESG and Faith-based portfolios) strategies.
Traditional Investing Options
Factor Based Portfolios
Factor based investing seeks to maximize market gains while minimizing market losses through enhanced diversification. Leading academics produced groundbreaking work on fundamental investment concepts to identify market factors that capture company size, value and profitability premiums.
Several of these academics have been recognized as Nobel laureates in economic sciences based on this research. Portfolio diversification has long been a strategy to reduce risk, however many of the gains and benefits of diversification can be lost if chosen securities move in lockstep with broader markets. Factor based investing has been shown to offset these market risks through factors that target broad, consistent, and long recognized drivers of returns.
Indexed or passive investing is an investment technique that attempts to reflect the composition of and generate similar returns to major market indices (e.g., S&P 500, Dow Jones, etc.) Investors use a buy-and-hold strategy to replicate the risk and performance of a specific market index by purchasing the underlying securities of the index, or more often investing in an index mutual fund or exchange traded fund (ETF) that closely tracks the underlying index.
Because indexing mirrors a specific index or market, investors should expect to closely match the performance and risk of the index. Indexed investing tends to be a buy-and hold strategy, creating the opportunity for lower investment costs and increased tax efficiency.
Socially Responsible Investing Options
Socially responsible investing (SRI), often referred to as impact investing or social investment, is a form of investing where ones social and moral values take a primary role in determining what companies are eligible for investment based on the business the company conducts and in the way it operates.
Common themes for socially responsible investments include ethically conscious investing, ESG (environmental, social, governance) and faith-based investing, among others. Socially responsible investments can be made into individual companies or through a socially conscious mutual fund or exchange-traded fund (ETF.)
Environmental, Social, Governance Investing
Environmental, social, and governance (ESG) investing criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Environmental criteria look at how a company performs as an environment steward that focuses on impact and sustainability. Social criteria examine how a company manages relationships with stakeholders including employees, suppliers, customers, and the communities in which it operates.
Governance criteria deals with the internal operations of a company including its leadership, executive pay, conflicts of interest, political contributions/affiliations, internal controls and shareholder rights. ESG criteria can assist investors with avoiding companies whose business practices possess higher investment risk.
Faith Based Investing
Faith-based or values-based investing is an investment strategy that investors employ to screen for potential investments that align with specific religious values and exclude those that don’t. Underlying investments are selected based on religious or moral values and typically exclude companies that are associated with gambling, tobacco, alcohol, weaponry, adult entertainment and predatory lending among others. Depending on the religious organization/denomination (Christian, Islam, Jewish, etc.) and their views, not all faith-based investment criteria is the same. Different religious organizations may prioritize certain criteria over others. Therefore, before considering a faith-based investment strategy, investors should understand the screening criteria for the strategy.