private and confidential
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Michael Lent, CIO Veris Wealth Partners. 100 Women in Hedge FundsJune 2009. Private and Confidential. Sustainability . What do we mean?. - PowerPoint PPT PresentationTRANSCRIPT
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Private and Confidential100 Women in Hedge Funds June 2009
Michael Lent, CIO
Veris Wealth Partners
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Sustainability. What do we mean?
Sustainability focuses on meeting the needs of the present without compromising the ability of future generations to meet their social, economic and environmental needs.
Sustainability issues are critical to a company’s ability to generate returns. When investing in companies these issues must be fully integrated into fundamental equity analysis
Sustainability IssuesGlobal Transition: Abundance to scarcityNatural resource preservationClimate changeHealth & WellbeingHuman Capital, Empowerment &
CreativityPandemics: HIV/AIDSPoverty/Development needsWater & EnergyCorporate governanceDemography/Urbanization
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Socially Responsible Investing in the United States $2.7 Trillion in 2007
Source: Social Investment Forum Foundation
Individual Separate Accounts in 2007•High Net Worth Individuals: $39 Billion
•Institutional Investors: $1.88 Trillion
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Institutions 360 institutions / $14 trillion in assets
Increasing role of consultants
Integration of ESG into RFPs
UN PRI Signatories by Region
UN PRI formed in 2005 and consists of the world’s largest institutional investors
joining together to develop principles for responsible investment
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Solutions to Sustainable Investing
SRI/Sustainable Managers: Long-term investment view integrating sustainability research within a rigorous fundamental equity analysis framework aiming for superior investment results
Traditional Managers with customized overlay screens: SRI Strict and SRI Best in Class
Impact & Community Investing: Micro-finance, community loan funds & notes, social equity funds and venture philanthropy focused on social enterprises and community development creating positive sustainable solutions to society’s most intractable problems in the U.S. and globally
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Solutions to Sustainable Investing
Sustainable Alternatives: Private equity, venture capital, real estate and hedge funds focused on sustainable business development including: Climate Change, Green & Responsible Real Estate, Clean Technology, Health & Wellbeing and New Lifestyle businesses
Shareholder Advocacy: Promoting corporate responsibility through the proxy voting process, by initiating shareholder resolutions, encouraging shareholders to vote their proxies responsibly and shareholder dialogue and engagement
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Sustainability Investing Performance
Source: Sustainable Asset Management
SUSTAINABILITY CAN OUTPERFORMCumulative Outperformance in %Source: SAM
The results do not represent returns of an actual portfolio. Results are shown gross of fees. Results would be reduced by application of fees and expenses incurred in the management of an account.
• TERMINOLOGY• Outperformance (p.a. in %) refers to the average annualized outperformance of a given portfolio relative to the overall sample• of companies (Portfolios 1, 2, 3, 4, and 5).• Tracking Error (in %) refers to how closely a portfolio follows the wider sample to which it is benchmarked, as measured by the standard• deviation of the relative stock returns.• Information Ratio = outperformance/tracking error. This is basically a measure of risk-adjusted returns.• T-Stat in this context is a measure of statistical significance
Sustainability Leaders
Sustainability Laggards
Out Performance (p.a. in %):
1.48 -1.41
Tracking Error (in %):
2.93 3.08
Information Ratio:
0.50 -0.46
T-Stat: 1.29 -1.17
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Resource Page
Social Investment Forum: www.socialinvest.org
KLD Research and Analytics, LLC: www.kld.com
SRI Studies: www.sristudies.
Sustainable Asset Management: www.sam-group.com
Global Impact Investing Network: www.globalimpactinvestingnetwork.org
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Important Consumer Disclosure
This presentation contains general information that is not suitable for everyone. Past performance is no guarantee of future results. There is no guarantee that the views and opinions expressed in this presentation will come to pass. Investing in the stock market involves gains and losses and may not be suitable for all investors. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security.
Veris Wealth Partners, LLC (“Veris”) is an SEC registered investment adviser with its principal place of business in the State of New York. Veris and its representatives are in compliance with the current registration requirements imposed upon registered investment advisers by those states in which Veris maintains clients. Veris may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. This presentation is limited to the dissemination of general information pertaining to its investment advisory/management services. Any subsequent, direct communication by Veris with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of Veris, please contact Veris or refer to the Investment Adviser Public Disclosure web site (www.adviserinfo.sec.gov).
For additional information about Veris, including fees and services, send for our disclosure statement as set forth on Form ADV from Veris using the contact information herein. Please read the disclosure statement carefully before you invest or send money.