Inspire Investing€¦ · Slide 4. Inspire Investing. INSPIRING TRANSFORMATION WITH LOW COST, FAITH...
Transcript of Inspire Investing€¦ · Slide 4. Inspire Investing. INSPIRING TRANSFORMATION WITH LOW COST, FAITH...
Inspire Investing Inspiring values building quality portfolios
For professional use only. | Copyright © 2018
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DisclosuresInvestment advisory services offered through CWM Advisors, LLC dba Inspire, a registered investment advisor with the SEC.
All performance data presented herein is for illustrative purposes only and actual results may vary. Past performance is not a guarantee of future results.
National Admin Office: 650 San Benito St, Ste. 130 Hollister, CA 95023; Phone: (877)658-9473; Email: [email protected]
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Today’sSpeaker
Joseph Verissimo, V.P. of Sales and Marketing
• Financial Advisor for 10 yrs• Previously with Christian
Wealth Management, Next Financial, Wells Fargo Advisors & Wells Fargo Bank
• MVP award with Next Financial 2012
• One of the youngest licensed advisors ever at Wells Fargo
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Inspire InvestingINSPIRING TRANSFORMATION WITH LOW COST, FAITH-BASED ESG INDEX INVESTING• Founded: 2015
• Headquarters: Silicon Valley, CA
• Distinctives: Innovative, faith-based ESG index strategies combining low cost, factor investing and positive
impact.
• Accolades: Nominated finalist ETF.com Awards: “Best New ESG ETF – 2018” and “Best New ETF Issuer – 2018”
• AUM: $267M discretionary assets under management (as of Sep 2018)
• Thought Leadership: FOX Business, Wall Street Journal, Financial Times, New York Times, Bloomberg, Yahoo!
Finance, Thomson Reuters, Huffington Post and other major media.
• Clients: Global client footprint of institutions, foundations, family offices and individual investors
• Product Offerings: Separately managed accounts (SMA), subadvisory, exchange traded funds (ETFs)
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Robert NetzlyCEO & PresidentPortfolio Manager• Founder, Inspire• Founder , Christian Wealth
Management• Previously at Wells Fargo
Private Client Services.
Darrell Jayroe, CFA, CFP, CKACIO, Senior Portfolio Manager• 23 years experience. Previously
at Bank of Oklahoma, PaineWebber, Southwest Securities
Joseph VerissimoVP Sales and Marketing• 2012 FA MVP with Next Financial• Previously with Wells Fargo
Advisors
Shane Enete, CFA• Investment Analyst• Chairman, Inspire Research
Institute for BRI at Biola• Finance Professor, Biola
University• Oversaw $200B assets at
Meketa & BrandesAaron Moon, MBACOO/CCO• Previously a financial advisor
with Christian Wealth Management
• Holds MBA from Biola University
Leadership & Investment
Team
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Today’sAgenda
Problem with the current investment universe
Rise of the screened investment
Filling the Gap
Inspire solution
Advisor opportunity
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Rise of the Screened
Investments
Source: U.S. SIF Foundation (2016)(ESG) : Environment, Social, Governance.
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ConsumerInterest
Sources: Morgan Stanley Institute for Sustainable Investing, Cerulli Associates (2017)
86% 84%
67%
14% 16%
33%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Millennials Women Men
ESG INTEREST OF INVESTORS
Interested Not interested
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Green Funds
Environment, Social, Governance (ESG)
Faith-Based- Biblically Responsible Investing (BRI)- Sharia- Kosher
Current SolutionsSocially
Responsible Investing
(SRI)
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Financial boycott
“Not bad” doesn’t mean it’s “good”
High Fees
No-index option
Middle of the road track record
Current Solutions
Creates Gap
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The Inspire Way:
PositivelyBRI
Identify the most inspiring companiesRange from -100 to +100 Invest in companies closest to +100Proprietary database of thousands of company scores
The Inspire Impact Score®, is a proprietary selection methodology that is designed to assign a score to a particular security based on the security’s alignment with biblical values and the positive impact that company has on the world through various environmental, social and governance criterion.
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Inspire Global Hope
Large Cap Index
Index of the 400 highest Inspire Impact Score large cap companies globally.
The indexes uses software that analyzes publicly available data relating to the primary business activities, products and services, philanthropy, legal activities, policies and practices when assigning Inspire Impact Scores to a company. The securities with the highest Inspire Impact Scores are included in the Indexes and are equally weighted. You cannot invest directly in an index and unmanaged index returns do not reflect any fees, expenses or sales charges.
• 50% U.S. Large Cap• 40% Developed International• 10% Emerging Markets• Equally weighted
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Inspire Global Hope
Large Cap Index
*You cannot invest directly in an index.
5 Year Annualized Return: 9.63% (as of 09/30/18)
211.07
0
50
100
150
200
250Inspire Global Hope Equal Weight Index (as of 9/30/2018)
9/30/13 9/2014 9/2015 9/2016 9/2017 9/2018
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Inspire 100 Index
Index of the 100 highest Inspire Impact Score U.S. large cap companies.
The indexes uses software that analyzes publicly available data relating to the primary business activities, products and services, philanthropy, legal activities, policies and practices when assigning Inspire Impact Scores to a company. The securities with the highest Inspire Impact Scores are included in the Indexes and are market cap-weighted. You cannot invest directly in an index and unmanaged index returns do not reflect any fees, expenses or sales charges.
• Only U.S. Large Cap• Market Cap weighted
Slide 24 *You cannot invest directly in an index.
5 Year Annualized Return: 17.36% (as of 09/30/18)
Inspire 100 Index
317.49
0
50
100
150
200
250
300
350
Inspire 100 Index (as of 9/30/2018)
9/30/2013 9/2014 9/2015 9/2016 9/2017 9/2018
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Inspire Small/Mid
Cap Impact Index
Index of the 500 highest Inspire Impact Score U.S. small and mid cap companies.
The indexes uses software that analyzes publicly available data relating to the primary business activities, products and services, philanthropy, legal activities, policies and practices when assigning Inspire Impact Scores to a company. The securities with the highest Inspire Impact Scores are included in the Indexes and are equally weighted. You cannot invest directly in an index and unmanaged index returns do not reflect any fees, expenses or sales charges.
• 50% “larger small” cap ($1B-2B)• 50% “smaller mid” cap ($2B-3.5B)• Equally weighted
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Inspire Small/Mid
Cap Impact Index
*You cannot invest directly in an index.
5 Year Annualized Return: 14.83% (as of 09/30/18)
297
0
50
100
150
200
250
300
350
Inspire Small/Mid Cap Impact Equal Weight Index (as of 9/30/2018)
9/30/2013 9/2014 9/2015 9/2016 9/2017 9/2018
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Inspire Corporate
Bond Impact Index
Index of the 250 bonds from the highest Inspire Impact Score U.S. large cap
companies.
The indexes uses software that analyzes publicly available data relating to the primary business activities, products and services, philanthropy, legal activities, policies and practices when assigning Inspire Impact Scores to a company. The securities with the highest Inspire Impact Scores are included in the Indexes and are equally weighted. You cannot invest directly in an index and unmanaged index returns do not reflect any fees, expenses or sales charges.
• Investment grade issuers• 4 maturity tranches• Equally weighted
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Inspire Corporate
Bond Impact Index
*You cannot invest directly in an index.
5 Year Annualized Return: 2.12%(as of 09/30/18)
117.2
95
100
105
110
115
120
09/30/13 09/30/14 09/30/15 09/30/16 09/30/17 09/30/18
Inspire Corporate Bond Impact Index (as of 9/30/2018)
9/30/2013 9/2014 9/2015 9/2016 9/2017 9/2018
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Age-OldMyth
Debunked
Global Hope Index9.63%
MSCI World Index9.28%
Net positive+0.35%
Inspire 100 Index17.36%
S&P 500 index13.95%
Net positive+3.41%
Small Mid Cap Index14.83%
S&P 400 Mid Cap index11.91%
Net positive+2.92%
Corporate Bond Index2.12%
Bloomberg Barclays US Agg Bond index
2.16%
Net negative-0.06%
Good values and good returns are not mutually exclusive
5 year annualized performance as of 09/30/20181: www.inspireinvesting.com (2018)2: www.msci.com/world (2018).3: www.us.spindices.com/ (2018)4: www.ishares.com (2018)
The MSCI World Index is a broad global equity index that represents large and mid-cap equity performance across 23 developed markets countries. The S&P 500 Index is an American stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ. The S&P MidCap 400 Index is comprised of U.S. stocks in the middle capitalization range. The iShares Core U.S. Aggregate Bond Index is composed of the total U.S. investment-grade bond market.
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Inspire Investments
To learn more about investments that track these
indexes, please visit www.inspireinvesting.com
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Inspire SMA’s
Independent RIA’s
Sub-advisor relationship
Strategic portfolios
Passive index strategies
Tactical strategies
Risk based strategies
Full TAMP solutions available
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AdvisorPerception
Vs.Reality
Sources: Morgan Stanley Institute for Sustainable Investing, Cerulli Associates (2017)
86% 84%
67%
38%
14% 16%
33%
62%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Millennials Women Men Advisors
ESG INTEREST OF INVESTORS -VS- ADVISORS
Interested Not interested
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Investors have increasingly poured money into impact investments
Source: U.S. SIF Foundation (2016)1.(ESG) : Environment, Social, Governance.
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Source: U.S. SIF Foundation (2016)(SRI) : Socially Responsible Investing.
SRI Assets have grown to 21.6% of all assets under management in the U.S.
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Biblical investing has huge
opportunity!
*Retirement Assets Only*328,210,187 Americans per the US census website (2018)
Pew Research Religious Landscape Study (2018)Economic Policy Institute (EPI) - The Average American Family Retirement savings (qualified money) is $95,776 (2016)
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Biblical investing makes a
splash with the media
“This will be an interesting company to watch…” –ETF Advisor Magazine
“The Chick-fil-A of investments.”-Huffington Post
“Biblically responsible investing (BRI) is a space with enormous potential.”-The Wall Street Journal
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Inspire makes the cut with
multi-billion dollar
money managers
“Inspire...increases our options of investments in the Biblically Responsible Investing (BRI) channel to serve our clients desire for a strategy that is in line with their convictions.”
Robert Miller, Managing Principal at Frontier
“Inspire sharpens the focus for investors who are seeking an impact consistent with their core values and our goal is to facilitate broad access for wealth advisors wishing to use the Inspire strategies for their practices.“
Rich Conley, Executive Vice President
Additional Managers who use Inspire
Recap
Problem with the current investment universe
Rise of the screened investment
Filling the Gap
Inspire solution
Advisor opportunity
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Emergency Fund
Inspire gives away 50% or more of the profits we earn from our management
fees every year, donating them to Christian ministries to create meaningful change in the lives of people all around
the world.
Inspire well in Birendranagar, Nepal.
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Be informed on what youown
Inspireinsight.com
Align your investments and stay updatedon the latestnews!
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Get the book onBiblically Responsible Investing
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