Janet M. Brown is President and CEO of FundX Investment Group. Ms. Brown has been part of the mutual fund evolution since 1978, researching and developing effective investment strategies for clients. A frequent guest on national media, Ms. Brown’s expertise is widely recognized. She is a board member of several nonprofits and foundations and a longtime advocate for sustainable responsible investing — SRI.
She details her portfolio strategy in this detailed interview with the Wall Street Transcript.
“Years ago, the conventional wisdom was you should put 20% in international, 20% in small cap and ride it out in the hope that it will all work out in the end. But our research and actual history show that we are better off being in the international funds while they perform well and being out of them when they are not performing well. A leadership trend may emerge, and it may fail, but a system like ours has an automatic defense built in, so you’re never going to stay too long in any area that failed. You should be looking at rankings every month and making continual adjustments to capture the larger trends.”
One of her several expert portfolio structures is the SRI.
“I love to talk about our Sustainable Impact Fund. A small handful of socially responsible funds go back a few decades. But this is now the fastest-growing area of the mutual fund business. We use self-identified SRI — now called sustainable and impact, or ESG — funds and ETFs, and supplement with funds that don’t self-identify as sustainable or ESG but have high ESG — environmental, social, governance — scores. We apply our same Upgrading strategy to that selected universe of sustainable funds and high-ESG-score funds.”
“I’ve been investing client accounts in the universe of SRI funds for over 20 years, and now we can also look at that additional universe of high-ESG-scoring funds, reviewing each fund’s scores in specific environmental, social and government areas.”
To get a full interview, read it at the Wall Street Transcript.