It’s about Long-Term Growth

If you watch CNBC with any regularity, then you likely find it laughable the frequency with which “market bottom” is mentioned these days. It seems everyone and his or her brother has an opinion on whether we have already hit such a milestone or when such a point may be reached in the near or not-too-distant future. The reality, of course, is that no one knows and market timing is, and always has been, a futile endeavor. Those who invest for the long-term are the ones who ultimately see portfolio growth.

Of course, in a market downturn like that which we have seen over the past several months can frustrate, and possibly scare, even the most savvy investors. The loss of more than 50% in some portfolios in a matter of months may mean that those same investors will spend the next decade (or two) rebuilding their portfolios just to reestablish the wealth they had only weeks ago. Wouldn’t it have been great if you had someone on your side with a long-term mindset that could help you make sense of this volatility?

Capital preservation has become the keyword of late and investment firms that have been preaching steady, but sustainable, growth are now in the spotlight. Firms, like Invested Interests have been advising their clients on the selection of companies with management that share this same theology. Just as these management teams have their own compensation packages tied to the long-term performance of the companies they manage, Invested Interests and other such firms have shied away from the flash-in-the-pan tactics that many high-flying hedge fund firms have taken with a commission-based model. It’s simply common sense: a flat-fee structure ensures that your investment advisor shares your interest – building long-term growth rather than trying to cash-in on interim market spikes.

We’re all human and we are all tempted by the seemingly instant recent profits generated by some firms during the boom times. The reality, of course, is that the same media that made such fanfare of the record breaking gains don’t like to talk about the losses these same firms are making now: it just doesn’t make for enticing news. Similarly, investors who have been making steady single-digit returns over the past few years and continue to do so in these turbulent times are not likely to make the headlines. The question to you, as an investor, is, of course: in which group would you like to be today?

Mutual Fund Social Screen Tool

Responsibility Permeates Companies

Corporate governance; unless you’ve studied management in some form or you’re an avid reader of the financial press, it’s a term that means little to you. It’s really just a fancy term that represents the manner in which a company’s directors and officers manage their business. For you and me, investors, however, the term can mean much, much more.

The subject of corporate governance, or responsibility, became front-and-center earlier this decade with the introduction of Sarbanes-Oxley; an act ratified to ensure that upper management was signing-off on what it believed to be accurate and realistic financial statements each quarter and at year-end. Beyond the issues of accounting, however, more and more people began to question the ethics of management teams and the actual relationship between their interests and those of minority shareholders. Ever since, the public has been scrutinizing management and the releases to the public like never before and some interesting correlations have appeared. It would seem that management that is responsible in one way, is often responsible in others as well.

Companies whose management has demonstrated sound corporate governance correlate highly with those who have ranked highly for their social responsibility and, more importantly, vice versa. Invested Interests ( www.InvestedInterests.com ) gained attention with the introduction of its powerful mutual fund screener tool as an effective tool for investors looking for more than tree-hugging companies; given the aforementioned correlation, socially responsible companies are the same firms that show low volatility and consistent performance. In a time when intraday volatility can wipeout a lifetime of diligent savings and investment, stability is at a premium and firms like Invested Interests are helping investors identify the hidden gems.

When you consider that CEOs are no different than you and me, it’s no surprise that their behavior and ethics with respect to the environment, for example, is likely to share similarities with the responsibility they feel for they way in which their institutions are managed. Smart investors are always looking for an edge over the masses and it would seem that there is a new and novel way to find the companies, and management teams, that will see you and I through these crazy times.

Mutual Fund Social Screen Tool

Screener Tool as Long-Term Value Test

Today’s financial markets are under greater strain than ever before. Investors, both novice and those with decades of experience, are scratching their heads as to where to invest and, maybe more importantly, where not to invest. With short-term U.S. government treasury bills offering negative yields, the consensus appears to be that no safe investment does exist. Preserving capital has become the sole driving force in any investment decision. The reality is, of course, the vast majority of companies’ fundamentals are unchanged and what was a good investment a few months ago remains; the trick, of course, is filtering through the noise.


Fortunately, with the digital age has come a vast new array of information sources; no longer are investors reliant only on our official regulatory bodies for the data on which investments are based. The Securities and Exchange Commission (SEC) requires that funds publish their holdings, but as we have seen with the Sarbanes-Oxley act, the Commissions is ineffective in its ability to mandate that the truth be told by CEOs and CFOs.


Invested Interests, a socially responsible investment advisory firm has been praised for its latest Mutual Fund Social Screener Tool that offers investors a free validation of their investment portfolio – ensuring that investors are better informed of where their dollars are being spent. At no time in history has the public been more aware of how and where goods are produced; this knowledge has lead to dramatic, public, changes in corporate policies from companies in every industry – from oil to running shoes. Companies that have responded to such public pressure have consequently benefited from far greater support from their consumer and the public at large – all of which has lead them to sustainable profitability and growth.


At a time when day-traders are being driven out of the market after suffering double-digit losses week after week, value-oriented investors looking at the long-term can better assure themselves of the viability of their portfolios with the knowledge companies represented in their funds are acting responsibly and helping to promise them the returns they seek in these turbulent times. Whether you’re looking for ethical investing or sustainable investing, there is little doubt that your portfolio would benefit from such a value check. Test your own portfolio and help assure yourself that you can weather this financial storm.


Mutual Fund Social Screen Tool