Voting with your wallet.
Do you invest to just maximize your return? Or do you apply some kind of filter or screen—for example, choosing to avoid investments in companies with negative impact, or perhaps even going the extra mile to find companies or funds that are trying to maximize their positive impact?
Alexis Advisors offers individuals, families, and small businesses an investment approach that seeks to balance social and environmental responsibility with our fiduciary responsibility.
We have developed several proprietary portfolios that hold a group of Exchange Traded Funds (ETFs) selected based on cost, liquidity, Morningstar ESG rating,* and the ability to meet the risk-versus-reward objective of the portfolio.
Our portfolios leverage Roberta's experience in institutional money management. Each portfolio has some degree of risk management in place, with the goal of mitigating catastrophic losses associated with severe stock market downturns - and as a result, seeking to smooth out returns and build wealth over time (see chart below).
What’s our benefit to you?
- An Intentional Investment Approach Our investment approach includes filtering on each ETF's social responsible rating, balanced with other considerations that allow us to fulfill our fiduciary responsibility. Our goal is to invest at least 90% of client assets in ETFs with a Morningstar sustainability rating of 3 Globes or above (range is 0 - 5 globes). We also apply a negative screen to all of our investment options, choosing to avoid ETFs with a core focus on fossil fuels, mining, casinos or other "sin stock" categories.
- Loss Minimization Each our proprietary portfolios applies a degree of risk management (a "seat belt," if you will) in an effort to avoid catastrophic losses. Having some kind of loss minimization strategy in your account is a crucial factor in being able to meet your goals, particularly as you move closer to retirement.
- Aligned Interests We are not paid a commission based on where we invest your money. As a fee-only investment advisor, we are paid a percentage of assets managed. This means that our interests are aligned: both of us want to see your money grow!
- Access to Investment Manager If you have a question about the strategy of a particular portfolio, you can contact the fund manager. Us! Additionally, we continuously assess our portfolios and strive to keep you informed about each portfolio’s current exposure to the stock market.
*An ESG score allows us to evaluate how well the companies inside a fund are managing their environmental, social, and governance responsibilities, on average. Morningstar’s ranking system uses a scale of 1 to 5 globes to rank each fund's ESG rating. For more on sustainable investing, please click here.
The S&P 500 Index lost nearly 50% and 57% of its value in the last two bear markets (3/00-10/3 and 10/07-3/09) respectively.
Did you know that a 50% loss requires a 100% return just to get back to where you started?
Did you know that it took between 38 and 50 months (just over 3-4 years) for the S&P 500 Index to recover to prior levels?
It’s the timing of these losses.
If you are within a few years of retirement, these kinds of losses can put a significant dent in reaching your goals.
What’s the cost?
As a fee-only Registered Investment Advisor (not a broker), you pay us an annual percentage of the assets we manage. We do not require a minimum investment; however, larger accounts offer greater diversification across our proprietary portfolios.
Check out our regulatory record: