The ESG (Environmental, Social, and Governance) MaxBalanced strategy is designed to provide an approach similar to that of the MaxBalanced strategy. We strive to achieve returns but must also ensure risk is mitigated so the fundamental purposes of the strategy are not substantially at risk. We do this while ensuring that the funds and investments within the portfolio meet the ESG criteria based on their policies and procedures. . For an individual investor, Capstone Investment Financial Group, LLC believes this approach can lead to attractive returns with less volatility than some of our other strategies. Our ESG MaxBalanced portfolios were initiated by Capstone Investment Financial Group, Inc., which Capstone Investment Financial Group, LLC purchased in 2014, and we have continued operating the strategy as intended. The operating premise of this strategy involves both diversification and tactical allocation; thus the term “balanced”.
The MaxBalanced strategy may invest in domestic stocks — small, medium, large; international stocks — developed or emerging; US bonds, including TIPS; non-US bonds; currencies; real estate; natural resources and commodities, as well as absolute return strategies. Besides stocks and bonds, we will invest in Exchange Traded Funds and Mutual Funds that meet not only the MaxBalanced criteria, but also are within the ESG parameters and maintain a substantial ESG score.
Objective
The goal of the ESG MaxBalanced strategy is to provide superior risk-adjusted returns while maintaining ESG status and taking part in Socially Responsible Investing.
Investor Profile
An investor using this strategy seeks responsible investing with the intent of preservation of capital with some exposure to equity; along with a focus on impact investing through ESG.
Fund Strategy
ESG MaxBalanced was inspired by the University Endowment Model with the ESG additional screening process. The Portfolio is designed to offer investors improved risk management techniques and broad diversification.
The strategy is super diversified, with an entire world of investable assets available to build our portfolios – including 7 major and 12 sub-asset classes within the ESG space.
MaxBalanced offers a tactical, disciplined, and rules-based risk management process to seek capital preservation in poor markets. In addition, MaxBalanced provides worldwide opportunities for stability and growth.
Stock Selection Process
- The MaxBalanced SM Fund may invest in small, medium or large domestic stocks, as well as international stocks — developed or emerging; US bonds, including TIPS; non-US bonds; currencies; real estate; natural resources and commodities, as well as absolute return strategies. All stocks and bonds are carefully chosen based on their ESG score.
- Capstone Investment Financial Group uses the MSCI ESG scoring system to ensure that all securities within our ESG portfolios meet the strict ESG standards.