Sustainable Responsible Impact Investing
What is An investment approach that considers both SRI financial returns Investing? & social impact Alexis Advisors is a registered investment advisor with the Commonwealth of Virginia.
SRI Investing Defined Sustainable Responsible Impact (SRI) investing is the act of choosing your investments on the basis of social good, as well as some degree of financial gain. SRI investors aim to invest in companies that do business in positive and responsible ways, and/or to influence corporate resultions. Alexis Advisors is a registered investment advisor with the Commonwealth of Virginia. Concepts included in this presentation should not be considered investment advice. Advice can only be provided after entering into an advisory agreement with the advisor.
History of SRI Investing 1700s The Quakers refuse to take part in the slave trade or to invest in weapons of war. 1750s John Wesley, an early leader of the Methodist church, urges congregants not to be involved in gambling, usury and industries that used toxic chemicals such as arsenic and lead. 1700s – 1960s SRI’s focuses on avoiding “sin industries” such as gambling, tobacco, and liquor. 1960s Shift towards civil rights, equality for women, and better treatment of workers. 1980s Institutional investors get engaged in pulling their money out investments in South Africa because of apartheid, playing a major part in bringing an end to apartheid in 1994. 1980s Trillium Asset Management is the first investment advisory firm devoted specifically to investing in a socially responsible way. 1990s Expansion of SRI impact mutual funds. 2000s Screening of Exchange Traded Funds. Increased shareholder advocacy, leveraging the power of stock ownership in publicly-traded companies to promote environmental, social, and governance change. Debt instruments to fund loans to impact investments. Increased intersection of public- private partnerships (Opportunity Zones.) Alexis Advisors is a registered investment advisor with the Commonwealth of Virginia. Concepts included in this presentation should not be considered investment advice. advice can only be provided after entering into an advisory agreement with the advisor.
Range of Options Doi Doing Well ll Do Doin ing Goo Good Sustainable Su le Res esponsible le Im Impact In Inve vesti ting Classic ic Ph Phila lanthropy Inves estin ing Phila Ph lanthropy Publicly Traded Publicly Traded Publicly Traded Non-Publicly (Divest: Negative Screen) (Positive Screen) (Shareholder Advocacy) Traded The act of committing Div Divest: Scr Screen ou out Screen publicly traded Purchase stock in Make dir direct de debt or or Donate money to help money or capital to an publicly traded companies and funds publicly traded equity in eq investment in generate social and/or endeavor with the “sin” stocks and based. May include companies so you can non-publicly traded environmental impact primary goal of funds, and those top down scr screening on on vote on on shar shareholder companies that focus with no no fina financial earning a profit. that harm the ESG SG sc scor ores s res esolutions to on environmental return. planet. E.G, those (Environmental, Social, influence corporate impact alongside that target and Corporate ESG policies. financial return. Can tobacco, fossil Governance), or be very high risk, fuels, gambling, bottom up selection. particularly with alcohol. equity venture capital. Alexis Advisors is a registered investment advisor with the Commonwealth of Virginia. Concepts included in this presentation should not be considered investment advice. advice can only be provided after entering into an advisory agreement with the advisor.
PUBLICLY TRADED OPTIONS Alexis Advisors, LLC is a registered investment advisor with the Commonwealth of Virginia.
DIVEST: Negative Screen – Individual Stocks Divest and screen out “sin stocks” and those companies that harm the planet. (Watch out for capital gains!) Alexis Advisors is a registered investment advisor with the Commonwealth of Virginia. Concepts included in this presentation should not be considered investment advice. Advice can only be provided after entering into an advisory agreement with the advisor.
E nvironmental • Environmental Policies Positive • Supplier Policies ESG • S ocial Employee Policies • Customer Impact • Community Impact Screen • Executive Pay G overnance • Shareholder Rights • Internal Controls • Board Structure Alexis Advisors, LLC is a registered investment advisor with the Commonwealth of Virginia.
Positive ESG Screen - Funds S&P 500 Index Fund With the launch of Morningstar Sustainability Ratings, in partnership with Sustainalytics, anyone can screen the underlying fund. A portfolio manager can now to US ESG Select Fund tweak the holdings of any fund towards sustainable investing, simply by choosing the most sustainable of the available choices in any investment category. Alexis Advisors is a registered investment advisor with the Commonwealth of Virginia. Concepts included in this presentation should not be considered investment advice. Advice can only be provided after entering into an advisory agreement with the advisor.
Positive ESG Screen - Stocks • Environmental Practices • Employee Practices • Community – Philanthropy • Governance – For example, board structure Data Source: CSRHub.com Alexis Advisors is a registered investment advisor with the Commonwealth of Virginia. Concepts included in this presentation should not be considered investment advice. Advice can only be provided after entering into an advisory agreement with the advisor.
Positive ESG Screen - Stocks: Can Get Complicated Data Source: CSRHub.com Alexis Advisors is a registered investment advisor with the Commonwealth of Virginia. Concepts included in this presentation should not be considered investment advice. Advice can only be provided after entering into an advisory agreement with the advisor.
Positive Subjective Screen: Stocks R Sierra Club Green Alpha portfolios (GAA) Portfolio may be available through Social Inclusion your advisor Portfolio Alexis Advisors is a registered investment advisor with the Commonwealth of Virginia. Concepts included in this presentation should not be considered investment advice. Advice can only be provided after entering into an advisory agreement with the advisor.
Expect Similar or Higher Risk & Reward 1/1/2007 – 9/5/2019 Alexis Advisors is a registered investment advisor with the Commonwealth of Virginia. Concepts included in this presentation should not be considered investment advice. Advice can only be provided after entering into an advisory agreement with the advisor.
SRI Investing Can Be More Expensive Mutual funds can have higher fees (e.g., Green Century mutual fund fees range from 1.25% - 1.48%.) Exchange- Traded Funds’ (ETFs) fund fees are typically lower than mutual fund counterparts (around 0.50%.) Green Alpha Portfolios (Sierra Club and Social Inclusion), have a fee of 0.60%. Alexis Advisors is a registered investment advisor with the Commonwealth of Virginia. Concepts included in this presentation should not be considered investment advice. Advice can only be provided after entering into an advisory agreement with the advisor.
Shareholder Advocacy Shareholder advocacy efforts have resulted in an unprecedented paradigm shift in the behavior of both shareholders and company management that is creating a new environmentally sustainable economy. The goal of a shareholder resolution is to influence company decision making, thus success is measured by changes in corporate policy and actions. A successful proposal often leads to a dialogue that addresses the concerns raised in the resolution. Alexis Advisors is a registered investment advisor with the Commonwealth of Virginia. Concepts included in this presentation should not be considered investment advice. Advice can only be provided after entering into an advisory agreement with the advisor.
NON-PUBLICLY TRADED OPTIONS Alexis Advisors, LLC is a registered investment advisor with the Commonwealth of Virginia.
Non-Publicly Traded Debt • Virginia Community Capital Notes • Calvert Impact Notes Equity • Venture Capital – Start Ups (can be very risky!) Tax Credits & Crowd Funding • Come to our next Money Mornings! Alexis Advisors is a registered investment advisor with the Commonwealth of Virginia. Concepts included in this presentation should not be considered investment advice. Advice can only be provided after entering into an advisory agreement with the advisor.
Yes, We Are Moving the Needle! Over $3 trillion – nearly $1 of every $8 under professional management – is invested using ESG criteria, shareholder advocacy, and community investing strategies.* * AsYouSow.org Shareholder Advocacy Alexis Advisors is a registered investment advisor with the Commonwealth of Virginia. Concepts included in this presentation should not be considered investment advice. Advice can only be provided after entering into an advisory agreement with the advisor.
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