Merrill Lynch Socially Responsible Investing

Merrill Lynch Debuts Esg Model Portfolios

Michael Thrasher | May 03, 2018

Bank of America introduced five new model portfolios on Wednesday that adhere to Environmental, Social and Governance factors. The portfolios will be available to Merrill Lynch and Merrill Edge clients.

The new Core Impact Portfolios, constructed by the Global Wealth and Investment Management groups Chief Investment Office, are passive and primarily consist of exchange traded funds. They include a range of strategies from conservative to aggressive, and the minimum investment required is $5,000.

Merrill Lynch began offering five Sustainable Impact Portfolios in 2015, a combination of ETFs and mutual funds or hybrid model portfolios, but the latest batch of passive portfolios on the platform have allowed the brokerage to reduce minimums and the weighted average expense ratios. Unlike the Sustainable Impact Portfolios, the Core Impact Portfolios will also be available on Merrill Edge, the discount brokerage and investment advisory platform for self-guided investors .

This is largely about democratizing the access to impact investments, said Jackie VanderBrug, the co-head of impact investing for Merrill Lynch and U.S. Trust.

ESG investments are gaining traction in the U.S. There was $8.72 trillion invested in impact-related investments at the start of 2016, up 33 percent from 2014, according to the Forum for Sustainable and Responsible Investment.

Customization at an affordable price point is still to be desired.

Integrating Esg Into The Capital System

Research is at the heart of our approach and is grounded in investment materiality. In other words, we focus on the ESG issues that directly impact results and valuations.

In 2020, our investment analysts created more than 30 industry-specific ESG investment frameworks that capture the issues we believe to be material to each sector, help us understand how those issues affect companies financially, and enable us to measure and integrate those insights into our investment process. Every analyst across Capital Groups equity and fixed income investment units participated in these collaborative discussions. In all, Capital Group invested about 4,000 hours, integrating views from 200 investment analysts and 14 ESG specialists.

Focusing on material information emphasizes one of our greatest strengths: a highly experienced group of analysts building perspective on long-term industry trends and company potential.

Importantly, in these frameworks, we are seeking to measure and evaluate the risks and opportunities not fully captured by traditional financial metrics. These issues include long-term secular trends, such as energy transition and inequality. We also consider how companies operate. For example, can they build a competitive advantage by attracting, retaining and promoting the right people? Are they able to increase consumer trust by providing safer products?

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Managing Director, Divisional Director

Michael Armondo is a Managing Director for Rockefeller Capital Management and serves as the Divisional Director for the central United States. Michael joined Rockefeller in 2019 after 25 years at Merrill Lynch, where his latest assignment was as the Managing Director over the Greater Dallas Market.

Michael graduated from the United States Military Academy at West Point, where he played football, and obtained his M.B.A. from Heriot-Watt University in Edinburgh. He served in the United States Army as an Armor Officer after going to airborne school. At Merrill Lynch, he managed over 300 individuals and $36 billion in assets. Beginning as a Financial Advisor in San Antonio, Michael had various roles in leadership, including Resident Director, District Sales Manager, Director, and Managing Director. He was honored to be on the Board of the Merrill Lynch Trust Company of Texas, the Market Executive Strategic Committee, and the Chairman of the Director Advisory Council to Leadership. Michael currently holds his CFP® and ChFC® certifications.

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An Evolving View Of Fiduciary Duty

A corollary to the mistaken belief that sustainable investing means sacrificing some financial return is the belief that fiduciary duty means focusing only on returnsthereby ignoring ESG factors that can affect them, particularly over time. However, more recent legal opinions and regulatory guidelines make it clear that it is a violation of fiduciary duty not to consider such factors. Although adoption of this new understanding has been slow in the United States, other countries, such as Canada,the UK, and Sweden, are taking steps to redefine the fiduciary duty concept. On November 28, 2018, the Swedish parliament approved major reforms requiring the four main national pension funds to become exemplary in the field of sustainable investment. As Will Martindale, head of policy at PRI, bluntly put it to shareholders, Failing to integrate ESG issues is a failure of fiduciary duty.

Socially Responsible Investors Use The Esg Framework For Evaluation

For companies that pass the negative screens, the socially responsible investor evaluates the company based on its performance relative to environmental, social, and governance criteria. Companies manage their environmental risks with initiatives that improve resource efficiency and reduce waste. Companies improve social outcomes by treating employees well and having positive interactions with the local community. Companies with strong corporate governance prioritize board independence, increase reporting transparency, align executive compensation with company performance, and establish strong shareholder rights.

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Integration With Bank Of America

Even if you dont sign up with Bank of Americas Preferred Rewards program, your account with Merrill will be linked with your Bank of America account. Thats great when you want to transfer money from one to the other, because it happens instantly. Its hard to overstate the ease with which you can move money between accounts. Its done in seconds, and you know immediately the money is there.

Compare that with the days it typically takes to transfer money from your bank to your non-affiliated broker. So if you want to buy a stock immediately, you must wait for the funds to clear. On top of this, its also useful to simply have all your accounts with one organization, making your financial life just a bit easier.

Spdr Ssga Gender Diversity Index Etf

The SPDR SSGA Gender Diversity Index seeks to empower and invest in female entrepreneurs and companies that place female employees in the highest positions of power.

The mutual fund ranks corporations in the fund by 3 different standards of gender diversity and employee rights that help close the gap between men and women in the workplace. The fund is diverse, with 165 holdings and over $278 million in managed assets.

Some of the funds largest holdings are in Johnson & Johnson, Mastercard Inc. and The Home Depot Inc., all of which have women on their boards. The SPDR SSGA Gender Diversity Index is perfect for investors who want to place their money into large-cap stocks and support a more diverse, female-friendly workforce.

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Our Esg Research In Action

The health care services sector is a good example of our holistic, evidence-based approach to ESG. Capital Group analysts identified social topics as being the most material ESG issues within the industry. This meant a focus on consumer safety and product quality, affordability and access, and data security and privacy, all underpinned by strong management quality and accountability.

Zeroing in on material issues

When evaluating the ESG issues within the U.S. health care services sector, Capital Group analysts sought to identify those they believed were most material to the success of the company as a long-term investment.

In U.S. health care services, one key thesis is that value-based care is the most sustainable model over the long term. Doctors in value-based care models tend to conduct more proactive patient outreach and emphasize preventive care and ongoing maintenance. We believe this approach helps raise the health of the broader population, and in turn likely saves costs and increases patient satisfaction and retention.

To evaluate a company against this investment thesis, analysts conduct primary research through dialogue with the company itself. The analysts ask questions directly to companies at all levels of management, not just the executive suite, which helps them understand if the stated priorities are manifested in the companys culture and operations. Additionally, our analysts dont ask just once or even once a year. Its an ongoing effort.

Boa Integration And Preferred Rewards Program

Merrill Edge is also a competitive option for Bank of America customers since it lets you integrate your personal Bank of America accounts with your Merrill Edge accounts. Youll also have access to 4,300 Bank of America financial centers if you need any in-person assistance, and you can get discounts or interest rate boosters if you enroll in the Bank of America Preferred Rewards program.

Youll mainly need an existing B.O.A. checking account to be eligible to sign up for Merrill Edges Preferred Rewards program. The program has three tiers Gold, Platinum, and Platinum Honors that provide certain discounts for different account balances. Learn more about the rewards here.

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How Do We Review Robo

NerdWallets comprehensive review process evaluates and ranks the largest U.S. robo-advisors by assets under management, along with emerging industry players, using a multifaceted and iterative approach. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgements on which ones will best meet your needs.

DATA COLLECTION AND REVIEW PROCESS

We collect data directly from providers, and conduct first-hand testing and observation through provider demonstrations. Our process starts by sending detailed questionnaires to providers to complete. The questionnaires are structured to equally elicit both favorable and unfavorable responses from providers. They are not designed or prepared to produce any predetermined results. The questionnaire answers, combined with product demonstrations, interviews of personnel at the providers and our specialists hands-on research, fuel our proprietary assessment process that scores each providers performance across more than 20 factors. The final output produces star ratings from poor to excellent . Ratings are rounded to the nearest half-star.

RATING FACTORS

FACTOR WEIGHTINGS

The weighting of each factor is based on our teams assessment of which features are the most important to consumers and which ones impact the consumer experience in the most meaningful way. The factors considered, and how those factors are weighted, change depending upon the category of providers reviewed.

Where Marketpro Could Do Better

MarketPro has two slight drawbacks that customers might not love. First, there isnt any way to make a quick order entry or swiftly pass the order confirmation window, which can be a bit of a nuisance. Secondly, MarketPro doesnt support any advanced order types or direct market routing, such as conditional order.

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Securities And Issuers Are Carefully Screened For Material Esg Issues

We gather data from widely accepted third-party data providers, news reports and company statements, but overlay our own proprietary investment frameworks to determine which holdings raise flags. Low-rated holdings are flagged for review, and analysts provide detailed insights on the particular issues.

Our perspectives are built on a long-term view, engagement and detailed analysis never on screening results alone. We dig deeper and don’t always agree with conventional ratings.

Does Merrill Lynch Have Index Funds

Does Merrill Lynch have index funds? This Prospectus contains information you should know before investing, including information about risks. Please read it before you invest and keep it for future reference.

Is Merrill Lynch an ESG? Merrill Lynch and Merrill Edge today launched five new portfolios incorporating environmental, social and governance factors in response to growing demand for investments with the potential to produce positive societal outcomes without sacrificing financial returns.

What is socially responsible index? The MSCI Socially Responsible Investing Indexes are designed to represent the performance of companies with high Environmental, Social and Governance ratings. The indexes employ a best-in-class selection approach to target the top 25% companies in each sector according to their MSCI ESG Ratings.

Is ESG portfolio a good investment? ESG investing may lead to high returns

Other studies have found that ESG investments can outperform conventional ones. JUST Capital ranks companies based on factors such as whether they pay fair wages or take steps to protect the environment.

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Update Provides Visuals To Simplify Portfolios Analysis And Performance Review

Merrill Lynch is making impact investing a centerpiece of Merrill Edge, the firms digital investment service tailored to clients with less than $250,000 of investible assets.

An update on Monday refreshes the Merrill Edge user interface and adds environmental, social and governance scores from MSCI. The scores will identify which investments are ESG leaders or laggards, so investors can align their portfolios with their personal values.

The new user experience also simplifies portfolio analysis and performance review with new visualizations showing clients portfolio data, education and insights. The redesign builds on a stock research tool that it launched in November that aimed to help online investors make better decisions about thousands of U.S. equities.

In addition to monitoring personal portfolios, Merrill Edge investors can see how their performance compares to the broader market. The portal breaks down the portfolios asset allocation by investment class and industry, showing overlapping items and recommended actions to build a more balanced portfolio.

Knowledge is power, and we want our self-directed clients to know as much as possible when building and managing their portfolios to help them pursue investing goals, said Aron Levine, the head of Merrill Edge.

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Our Monitoring Process Has Four Steps

STEP 1

aggregation

ESG data aggregation

Our single ESG data repository integrates our own research and third-party ratings, e.g., MSCI, Sustainalytics, and UN Global Compact assessments.

STEP 2

flagging risks

Identifying and flagging risks

Key ESG issues are flagged based on our proprietary, sector-specific ESG investment frameworks, as well as third-party data and standards.

STEP 3

Flagged holdings require enhanced research and review. Insights and engagement are documented.

STEP 4

If there are outstanding concerns, the Issuer Oversight Committee provides an additional layer of review.

Is Merrill Edge Trustworthy

Merrill Edge has received an A+ rating with the Better Business Bureau. The BBB rates companies using a grade scale range of A+ to F, so this is the highest score a company can receive. This rating also indicates that Merrill Edge generally interacts well with its customers.

When assigning ratings, the BBB also considers factors like a companys complaint history, time in business, advertising issues, and more. But ratings can vary per investment app.

Merrill Edge generally hasnt run into any major lawsuits or public scandals over the years. According to BBB data, the company has resolved more than 2,200 complaints in the last 12 months.

Rickie Houston is a wealth-building reporter at Personal Finance Insider who covers investing, brokerage, and wealth-building products.

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Merrill Lynch Launches New Sustainable Impact Portfolios

Blog EntryVikas VijFinance and SRI

â Socially responsible investing has increasingly begun to influence how asset managers invest portfolios. It not only involves practices that are aimed at avoiding harm by screening companies that are a part of an investment portfolio, but also includes more proactive approaches such as impact investing, community investing and shareholder advocacy.

Merrill Lynch has announced that it has added sustainable impact multi-asset class portfolios to its expanding platform of impact portfolios. The decision is aimed at satisfying a growing need of its clients to employ their investment capital for positive social and environmental impact. Merrill Lynch will also equip its 14,000 financial advisors with new resources to help clients understand the impact to their investments in these portfolios.

The sustainable impact multi-asset class portfolios available through Merrill Lynch One have been constructed by Merrill Lynchâs Investment Management and Guidance team. The portfolios will aim at delivering a competitive return along with a positive ESG profile relative to a traditional, non-ESG focused benchmark. The portfolios will include MFs as well as ETFs.

A Fully Integrated Approach

At Capital Group, ESG is part of our investment process. ESG issues are deeply woven into The Capital SystemSM, as well as our fundamental research, due diligence and engagement. We believe our approach can help investors achieve better long-term outcomes.

Approach in action: See our highly integrated three-step process for incorporating ESG into our investment decision-making.

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Merrill Edge Ira Features

Merrill Edge is one of the more affordable options with low fees for different investment products. Some fees include a standard $6.95 per stock, option or ETF trade. Keep in mind that ETFs along with mutual funds have expense ratios that range from .03-2% annually. Its best to keep fees low as they can erode nest eggs and even expensive, actively managed funds underperform market indexes like the S& P 500. Therefore, its wise to check the fees and performance metrics prior to investing. They also charge an additional $0.75 per options contract and a $19.95 fee for mutual funds in self-directed accounts. There are some mutual funds that are commission free and any funds that carry trading charges have clear upfront disclosures.

Merrill Edge charges trading fees for fixed income products like bonds that range from 0-1$. Many short term debt investments like US treasuries trade commission free. Many bond investors usually purchase round lots which represent 100 bonds. Bonds have lower risk and returns, which is why most investors need a large quantity to have a decent profit.

Investors can use both the trading tools, research pieces and even a financial advisor to choose the optimal investments. Be aware that working with a Merrill financial advisor requires additional fees and higher account minimums.