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Personal Capital reaches USD1bn assets in managed ESG portfolios


Digital wealth manager Personal Capital has reached USD1 billion in assets under Management in its Socially Responsible Personal Strategy Investment portfolios, which were launched in 2018.“We’ve seen assets managed in our ESG portfolios more than double year-over-year in every month since inception. There is clearly a growing interest in those looking to invest more sustainably and responsibly,” says Brendan Erne, Director of Portfolio Management at Personal Capital. “Amidst the market volatility surrounding COVID-19, we’ve actually seen an increase in the percentage of Personal Capital’s assets under management that are invested in our ESG portfolios, as May was our best month yet with more than one in five dollars going into ESG. Due to the importance of striving for positive change and safety, it seems many investors are showing their support for more socially conscious strategies.”

Since 2018, Socially Responsible Personal Strategy is Personal Capital’s turnkey solution for investors built with best-in-class ESG-ranked US stocks, and our proprietary Smart Weighting™ methodology. In partnership with Sustainalytics, a global leader in ESG and Corporate Governance research with a history spanning more than 25 years, Personal Capital utilises the firm’s ESG ranking/scoring system when constructing and evaluating the companies to be included in portfolios.

“We use a combination of exclusive and inclusive filters, which allow us to avoid controversial categories and simultaneously seek out companies more proactively managing ESG issues,” says Erne. “Given our use of individual stocks, it can offer greater tax efficiency and opportunities for customisation than off-the-shelf mutual funds and ETFs.”

Socially Responsible Personal Strategies include all the benefits of the company’s Personal Strategy approach, including optimal asset class mixes that aim to maximise return and reduce risk, the Smart Weighting methodology within US equities, tax management, and disciplined rebalancing. The incorporation of ESG metrics primarily applies to the US and International Equity asset classes within the portfolio.

The company also announced today a collaboration with One Tree Planted and is committed to planting a tree for the next 2,500 future clients who invest assets into the Personal Capital Socially Responsible Personal Strategy, as part of an ongoing effort to give back and positively impact the environment.

“Personal Capital is a purpose-driven organization built on a foundation of transparency, accountability, collaboration and trust,” says Jay Shah, Chief Executive Officer at Personal Capital. “We are a brand that stands for doing the right thing, always. Though these are small actions, we hope giving back to help environmental causes with the donations of trees will help increase the involvement of communities as we all strive to create positive change.”

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