Values-Aligned Investing
Our Commitment to Values-Based and Sustainable Investing
As a faith-rooted, mission-focused organization, Wespath’s commitment to values-aligned investing is steadfast. We are always exploring ways to better meet the needs of investors and account for sustainably-related financial risks and opportunities.
Our values-aligned investment approach and activities empower our institutional investors, individuals and plan sponsors to achieve their long-term financial objectives while investing in alignment with shared faith-based and ethical investing principles.
Fiduciary First
Wespath’s priority is investment excellence. We are in the business of seeking market-rate and market-beating returns, not financial trade-offs. Wespath’s commitment to sustainable investing helps us seek these competitive returns.
Integrating Sustainability Throughout the Investment Process
Wespath ensures that sustainable investment practices are taken into account throughout the investment management process. Wespath considers sustainable investment risks and opportunities when selecting and monitoring our asset managers. More specifically, Wespath takes into account sustainable investment practices when assessing an asset manager’s underlying investment process and potential heightened risk exposure. Wespath also offers impact-focused investment strategies and our Social Values Choice funds, which exclude investments in fossil fuels.
Impact Investing: Strengthening Communities and Seeking Strong Returns
Wespath defines impact investing as investments with the stated objective of strengthening local and global communities while also seeking market-rate returns commensurate with risk. Wespath’s Positive Social Purpose Lending Program, which invests primarily in U.S. affordable housing, is the principal example of our impact investing approach.
Investment Exclusions
Wespath seeks to avoid investment in companies that produce and/or provide products and services that are not aligned with United Methodist values. Wespath funds also have exclusions that seek to enhance long-term investment performance by reducing exposure to certain climate change and human rights risks. For those seeking heightened exclusions, Wespath offers the Social Values Choice funds.
Shareholder Engagement
Wespath uses its influence as an investor to have dialogues with companies, asset managers and policymakers and to urge them to implement sustainable practices and policies, which we believe will lead to greater financial security and improved investment returns.