ClearPoint Financial Partners adds Fluxx to Roster of Clients Offering Employees ESG Investment Portfolios through their 401(k) Retirement Plan

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ClearPoint Financial Partners is proud to be working with Fluxx, the leading grants management software provider, to provide its employees the choice to align retirement investments with their values.

... how companies treat employees and customers, their impact on the environment and the diversity and transparency of their leadership team matters.

Fluxx recently adopted Impact Retirement, ESG focused target-risk portfolios within their 401(k) retirement plan. ESG investing, where an investor considers the Environmental, Social and Governance impacts of their holdings, appeals to an ever-broadening audience. This kind of impact investing is especially appealing to Millennials, where an estimated 90% say they want their assets and employer to reflect their social values.(1)

The market for sustainable, responsible, and impact investments (including ESG), reached $8.7 trillion in 2016, however, it is estimated that it accounts for less than 1% of the $7.7 trillion U.S. defined contribution retirement market, which includes 401(k) retirement plans.(2) This is likely because target-date and target-risk portfolios have become the dominant asset class within retirement plans and “ESG versions of these portfolios have been virtually nonexistent” said Mike Grimme, a veteran within the retirement industry, managing partner of ClearPoint Financial Partners and developer of Impact Retirement. “ESG focused target portfolios give employees who want to align their retirement assets with their values the convenience and professional allocation that target portfolios provide.”

Many employers, advisors and fiduciaries are struggling with the stigma of outdated concepts of responsible investing and its effect on investment performance. A growing number of studies by large financial and academic institutions support a connection between corporate financial performance and ESG factors, including those published by the University of Oxford, Deutsche Asset & Wealth Management and the CFA Institute.

Growing demand by employees and research connecting ESG with performance are paving the way for employers to incorporate investments that consider Environmental, Social and Governance factors into their retirement plans.

The investment options that go into Impact Retirement portfolios are screened using traditional investment analysis methodologies in addition to the evaluation of each fund manager’s consideration of ESG factors in their management process. Mike Grimme stated, “we think that how companies treat employees and customers, their impact on the environment and the diversity and transparency of their leadership team matters. Why wouldn’t an investor care about these issues? Considering ESG just sounds like good business if you are interested in long-term performance, which is what we are talking about with retirement plans.” ClearPoint Financial Partners is responsible for evaluating, selecting and monitoring the investment options that go into Impact Retirement portfolios.

“With many of our foundation and philanthropy partners moving into impact investing, it was a natural business decision for us to provide our employees a way to align their retirement assets with their values” said Fluxx CEO, Madeline Duva. “Thanks to ClearPoint Financial Partners and ADP Retirement Services for working with us to develop a series of target-risk portfolios that consider ESG factors.”

About Fluxx
Fluxx is the cloud platform that powers impact in philanthropy by connecting givers and doers. The Fluxx platform creates capacity, increases visibility, and improves collaboration for organizations throughout the philanthropy ecosystem. Hundreds of the world’s leading foundations and tens of thousands of nonprofits rely on Fluxx to streamline their funding processes, get data-driven insights, and drive more impact. Since 2011, nearly $40 billion in total funding has been granted via the Fluxx platform to philanthropic organizations worldwide. The company also remains committed to charitable giving through participation in the Pledge1Percent campaign.

http://www.fluxx.io

About ClearPoint Financial Partners, LLC
ClearPoint Financial Partners (CPFP), is a retirement focused consulting firm based in the Seattle area that works with employers to get more employees to retirement readiness, uncover hidden fees and protect fiduciaries by guiding prudent plan reviews. CPFP is the developer of Impact Retirement, giving employees a way to align their retirement investments with their values.

http://www.clearpointfp.com

(1) TIAA – Second Annual Practice Management Study, Responsible Investment, 2015
(2) US SIF, Adding Sustainable and Responsible Investing to Defined Contribution Plans, July 2017

Investment Advice offered through Financial Advocates Investment Management, DBA ClearPoint Financial Partners, a registered investment advisor. Financial Advocates Investment Management and ClearPoint Financial Partners are separate entities.

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Michael Grimme
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