Exclusionary screening

Do you know what you own? Is your portfolio aligned with your values? We’ll help you answer these important questions. And work with you to make sure you’re comfortable with the answers. We have extensive experience helping clients apply exclusionary (or negative) screens to their portfolios. In other words, removing investments that don’t align with their values or standards. But which issues are important to you? And to what extent do you want to implement? We’re here to help.
Watch Aubre Clemens, J.P. Morgan Manager Solutions Due Diligence Team, introduce the approach of Exclusionary screening.

Investor activism made easy

Also known as “socially responsible investing (SRI),” exclusionary/negative screening is a widely used approach to sustainable investing. It’s also a pretty straightforward way to align your investments with your values.

Common exclusionary/negative screens include:

  • Adult entertainment
  • Alcohol
  • Tobacco
  • Fossil fuels
  • For-profit prisons
  • Firearms and weapons
  • Gambling
  • Stem cell research

But it’s not an all-or-nothing approach. You can determine how much leeway you’ll give to a company or sector. Maybe you draw the line at companies that earn at least half of their revenue from products you don’t support. Or maybe your criteria are stricter. We can help you determine the right balance for you and your wealth plan.

While exclusionary/negative screening can help investors promote certain social values, it is important to recognize the potential performance impact of such exclusions on the portfolio.

We’ll help you design a portfolio that balances the dual goals of values alignment and financial returns. 

Investments in tobacco stocks globally have far outpaced those of global equity markets since December 30, 1994

Cumulative index performance—Net returns. Source: MSCI, data from March 2002 through December 2018. Past performance is no guarantee of future results. It is not possible to invest directly in an index.
In those 15 years, the MSCI World Index has risen from 100 to 260.17, whereas the MSCI World Tobacco Index has climbed from 100 to 828.14.

Over time, the S&P 500 ex Energy Index has performed in line with the S&P 500

Growth of $100 using monthly index returns. Source: Bloomberg, as of December 2018. Past performance is no guarantee of future results. It is not possible to invest directly in an index.
  • Exclusionary screening

    Do you know what's in your portfolio? Are you investing in companies that don't meet your values or standards? We can answer these questions and more.
  • Thematic investing

    If you’re looking to support a specific social or environmental issue within your portfolio, thematic investing opportunities may be a good fit.
  • Impact investing

    Impact investing may be the most exciting of all the sustainable investing strategies. It‘s intended to generate measurable positive social or environmental impact alongside financial return. Learn more.