Sustainable Responsible Impact Investing What is An investment - - PowerPoint PPT Presentation

Sustainable Responsible Impact Investing

What is SRI Investing?

An investment approach that considers both financial returns & social impact

Alexis Advisors is a registered investment advisor with the Commonwealth of Virginia.

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.

SRI Investing Defined

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

• f 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.

Classic ic Inves estin ing Ph Phila lanthropy

Doi Doing Well ll Do Doin ing Goo Good

The act of committing money or capital to an endeavor with the primary goal of earning a profit.

Range of Options

Su Sustainable le Res esponsible le Im Impact In Inve vesti ting

Div Divest: Scr Screen ou

• ut

publicly traded “sin” stocks and funds, and those that harm the

• planet. E.G, those

that target tobacco, fossil fuels, gambling, alcohol. Make dir direct de debt or

• r

eq equity in investment in non-publicly traded companies that focus

• n environmental

impact alongside financial return. Can be very high risk, particularly with equity venture capital.

Publicly Traded (Positive Screen) Non-Publicly Traded

Donate money to help generate social and/or environmental impact with no no fina financial return.

Ph Phila lanthropy

Publicly Traded (Shareholder Advocacy)

Purchase stock in publicly traded companies so you can vote on

• n shar

shareholder res esolutions to influence corporate ESG policies.

Publicly Traded (Divest: Negative Screen)

Screen publicly traded companies and funds

• based. May include

top down scr screening on

• n

ESG SG sc scor

• res

s (Environmental, Social, and Corporate Governance), or bottom up selection.

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.

Alexis Advisors, LLC is a registered investment advisor with the Commonwealth of Virginia.

PUBLICLY TRADED OPTIONS

DIVEST: Negative Screen – Individual Stocks

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.

Divest and screen out “sin stocks” and those companies that harm the planet. (Watch out for capital gains!)

Environmental Social Governance

• Supplier Policies
• Employee Policies
• Customer Impact
• Community Impact
• Executive Pay
• Shareholder Rights
• Internal Controls
• Board Structure
• Environmental Policies

Positive ESG Screen

Alexis Advisors, LLC is a registered investment advisor with the Commonwealth of Virginia.

Positive ESG Screen - Funds

S&P 500 Index Fund US ESG Select Fund

With the launch of Morningstar Sustainability Ratings, in partnership with Sustainalytics, anyone can screen the underlying fund. A portfolio manager can now to 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.

Data Source: CSRHub.com

• Environmental Practices
• Employee Practices
• Community – Philanthropy
• Governance – For example, board structure

Positive ESG Screen - Stocks

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

Sierra Club (GAA) Portfolio Social Inclusion Portfolio Green Alpha portfolios may be available through your advisor

R 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.

1/1/2007 – 9/5/2019

Expect Similar or Higher Risk & Reward

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.

• 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%.

SRI Investing Can Be More Expensive

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

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.

Equity

• Venture Capital – Start Ups

(can be very risky!)

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.

The Tobacco Free Alliance

• f Virginia

is dedicated to changing policies, systems, and environments to promote a tobacco free, healthy Virginia.

WHAT YOU CAN DO:

Negative Screen Shareholder Advocacy – Proxy Voting ESG Screening of Exchange Traded Funds

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.

Alexis:

(alexo)

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