It is important to understand that utilizing ESG-specific investments and investments that Vahanian & Associates perceives to have an intentional or measurable impact, does not guarantee that investment selections will align with specific sustainable values that you may have, but will instead be invested in accordance with Vahanian’s criteria for investment selection. ESG scores and ratings may differ from one investment to another. It is important to note that how a firm and/or portfolio manager analyzes and identifies ESG factors may not reflect how another firm and/or manager does respective research.

Further, the underlying holdings of pooled ESG investment vehicles may or may not offer the same level or scope of ESG information as other companies and, therefore, data may not be consistent across the board. As a result, some investments may not capture sustainable concepts with 100% accuracy. Therefore, we may rely on portfolio or fund managers to establish their own system of ranking and sustainable factors in coordination with their mandate.

Utilizing ESG-specific investments does not guarantee a certain level of performance. The investment universe of ESG-related investment vehicles is by nature narrower in scope and therefore your investment options may be limited. Further, by narrowing the scope of investment options you may or may not be missing out on an opportunity or sector that could contribute to overall performance. ESG-mandated investments may have a higher expense ratio than traditionally managed investment vehicles.