Positive Social Screening Strategy Brings Opportunities for Growth says Reynders, McVeigh Capital Management

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Reynders, McVeigh core equity performance demonstrates effectiveness of positive screening.

Reynders, McVeigh Capital Management today issued a new Insight paper, “Power of Positive Screening: Pursuing Strength of Social and Financial Returns." The paper notes that implementing a positive screening strategy to identify financially and socially grounded investment opportunities is a significant leap from the traditional approach to socially responsible investments, which focused on screening out unethical industries.

Co-authored by Chat Reynders, CEO and Chairman of Reynders, McVeigh, and Patrick McVeigh, President and Chief Investment Officer of the firm, the paper highlights positive screening as a practice that isolates fundamentally sound equities that demonstrate strength of balance sheet, dependability of management, and a commitment to act as part of a global community focused on positive change. This goes beyond basic tactics such as “green investing” and selection of alternative energy companies to broaden the scope of socially responsible investments.

The potential for success is validated by the performance of Reynders, McVeigh’s core equity composite1, which is built on positive screening. The core composite provided a cumulative total return of 59.98% from 12/31/2005 through 12/31/2012. This compares to cumulative returns for the same period of 32.65% for the S&P 500, 16.39% for the MSCI EAFE Index, and 23.37% for the MSCI World Index.

“Market conditions now highlight the correlation between company performance, integrity and transparency – an interdependence that makes smart SRI nearly indistinguishable from smart mainstream investing,” write Reynders and McVeigh. “Simply put, good management with a moral compass and a long-term view reduces investor liability – and in our ever-progressing world, opportunities abound to grow capital while promoting positive social change.”

Please visit http://www.reyndersmcveigh.com/insights.php for more Insights from Reynders, McVeigh or to download “Power of Positive Screening: Pursuing Strength of Social and Financial Returns” directly.

About Reynders, McVeigh Capital Management:

Reynders, McVeigh Capital Management is a Boston-based investment management firm focused on socially progressive investments, creating portfolios with cores comprised of companies that emphasize social impact. The firm has over $800 million assets under management and advises on an additional $4 billion for trust offices around the country. Listed consistently in the top 100 in AdvisorOne’s annual Top Wealth Managers Rankings, Reynders, McVeigh leverages its proprietary research and emphasizes transparency, discretion, and a due diligence process in support of each investment to construct individually tailored portfolios for high net worth clients.

For more information, please visit http://www.reyndersmcveigh.com.

Reynders, McVeigh Capital Management, LLC composite performance results represent time-weighted actual performance results for those discretionary client accounts managed by Reynders McVeigh during the corresponding time period. The Core Equity Composite includes all supervised equities in accounts under direct management at Reynders McVeigh that have at least 90% of their supervised equities invested in stocks listed on the current Reynders McVeigh focus list. Performance for the Reynders McVeigh Core Equity Composite is based on the equities in accounts only and does not account for cash requirements or for cash performance.

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Evan Zall
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