Total financial wellness solution provider BrightPlan today announced the launch of an environmental, social and governance (ESG) portfolio and new enhancements to its investing capabilities.
The San Jose, Calif.-based company said its new investing capabilities are core to enabling employees’ financial well-being by providing them with more choices to invest for their life goals in a way that aligns with their values.
The expanded investing features directly address the needs of employees and empower them to achieve financial success by investing in the right way to grow their money, the company said. Recent survey results show 82% of employees seek employer-provided investing tools to help achieve their financial goals―making it the top financial wellness feature employees are asking for, along with financial education.
“Supporting the development of employees’ holistic financial well-being includes growing and building wealth through investing,” said Marthin De Beer, founder and CEO of BrightPlan. “In a world of cryptocurrency and meme stocks, employees who are ready to invest in a way that aligns with their values need a solution that guides them in the right direction. Through an investment strategy that is personal goals-based, in your best interest and reflects best practices, we are meeting those demands.”
ESG Portfolio
Employees enrolled in BrightPlan can now invest their money in a way that better aligns with their personal values through the ESG portfolio. An employee who cares about climate change may want to invest in portfolios that include companies with a lower carbon footprint or have sizable investments in renewable energy. Likewise, an employee who cares about social issues may want to invest in portfolios that include companies that perform well on gender diversity or have ethical supply chains.
In the stock portion of the portfolio, BrightPlan uses funds managed by BlackRock that give greater weights to companies leading their industry in ESG practices. BrightPlan also utilizes TIAA-CREF to strategically allocate to bonds with direct and measurable impact.
Index Portfolio
BrightPlan’s new index portfolio allows employees to invest their money in an assortment of index funds and exchange-traded funds (ETFs) customized to their risk tolerance and time horizon. Many employees don’t know where to start with investing or are afraid of making a mistake. Offering an index fund option as the default for employees aligns with best practices in investment management, the company said.
This “passive” investment approach is BrightPlan’s simplest, lowest cost option that emphasizes broad diversification through minimizing fees and taxes.
By answering a few simple questions about their investing timelines, BrightPlan will recommend and select a strategy complete with a customized portfolio based on their responses. Guidance provided follows the best practices of investment management by customizing investment portfolios according to an employee’s goal, risk tolerance, time horizon and other preferences, while minimizing costs and maintaining global diversification.
For a deeper dive into the new portfolios, check out this this blog post from BrightPlan Chief Investment Officer Peter Lazaroff.
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