ClearPoint Financial Partners Launch Impact Investing Option for Retirement Plans

New investment portfolios give employees the choice to align retirement assets with their values using a target-date approach.

Retirement consulting firm ClearPoint Financial Partners, LLC has launched Impact Retirement, ESG focused target-date portfolios this summer.

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, yet few employers offer ESG investment options within their 401(k), 403(b) and 457 retirement plans.

The market for sustainable, responsible, and impact investments reached $8.7 trillion in 2016, however, it’s estimated it accounts for less than 1% of the $7.7 trillion U.S. defined contribution retirement market. One reason for such a small allocation to investments with a positive social impact is likely because 70% of employers use target-date funds as the default investment option for their retirement plans, yet ESG versions of these portfolios are virtually nonexistent.

“It’s time to give would-be impact investors the investment options they’ve been looking for,” said Mike Grimme, a veteran within the retirement industry and managing partner of ClearPoint Financial Partners. “ESG target-date portfolios give both employees and employers a way to connect on common values.”

ClearPoint Financial Partners, LLC is working with Pasadena-based Whittier Trust to provide ESG analysis on the underlying funds within the portfolios.

“Whittier has been working with our clients for years on implementing ESG strategies in their portfolios and we are excited to bring our expertise to the retirement plan market in partnership with Clearpoint Financial Partners, LLC” said Craig Ayers, Senior VP of Whittier Trust.

About ClearPoint Financial Partners, LLC

ClearPoint Financial Partners, LLC managing partner, Mike Grimme, based in the Seattle area works with employers to create retirement plans that focus on transparency and fairness of fees, getting employees to retirement readiness and protecting fiduciaries by creating prudent and practiced plan reviews.

About Whittier Trust

Whittier Trust, based in Pasadena, CA, is the oldest and largest multifamily office headquartered on the West Coast and offers a breadth of financial services to tailor investment strategies that meet clients’ unique needs, goals, and values.

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Investment advice offered through Financial Advocates Investment Management, a registered investment advisor, DBA ClearPoint Financial Partners. Financial Advocates Investment Management and ClearPoint Financial Partners are separate entities. Impact Retirement portfolios are comprised of underlying funds, which are selected, monitored and maintained by ClearPoint Financial Partners.

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