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Sustainable Investment Solutions™A Custom Portfolio Design Process for Socially Conscious Investors
Johann Klaassen, PhD. VP, Managed Account Solutions1-800-422-7284 [email protected]
Danielle Burns, AIF® Business Development Consultant1-877-542-8583 [email protected]
First Affirmative
• Independent Registered Investment Advisor
• Serving socially conscious investors
• $593 million in client assets under management (09/30/09)
• 15 employees in Colorado Springs / Boulder /Denver
• Nationwide network of locally focused financial planners and investment advisors
• Signatory to the UN Principles for Responsible Investment
Sustainable Investment Solutions™
Getting toKnow You
AssetAllocation
Implementation
Reporting &Monitoring
Changes?
Consultative Process
First Client Meeting:
• Advisor and client discuss how First Affirmative is uniquely positioned to serve socially conscious investors
• Discuss needs, time horizon, risk tolerance, return expectations, social criteria, etc…
• Complete Confidential Client Questionnaire
Confidential Client Questionnaire
Institutional Client Questionnaire
Portfolio Design
First Affirmative develops a custom Proposal and Investment Policy Statement based on the Questionnaire and supplemental information
Proposal includes asset allocation strategy
Funds, separate account managers, or a combination of funds and separate accounts
Signature Please
• Advisor and client review and discuss the Proposal and IPS
• Client signs Investment Advisory Services Contract
• Client signs IPS
• Client signs New Account Set-up Forms
• Client provides Photo ID
• Arrangements are made to fund the account
• All signed documents must be received by First Affirmative before implementing account management strategy
Sustainable Investment Solutions™
Unified Managed Accounts for
Socially Conscious Investors
We believe that investors must take responsibility for the impact our money has on the world.
We help clients make money and make a difference by consciously directing investment capital toward enterprises that contribute to a clean, healthy environment, treat people fairly, embrace equal opportunity, produce safe and useful products, and support efforts to promote world peace.
At First Affirmative
We understand that investment returns over the long term are driven primarily by the performance of innovative, well-managed corporations that are themselves dependent on the health of the human societies and ecological systems that sustain all economic enterprises.
We offer investors an opportunity to consciously connect good fortune and good will, and help transform our world.
For a smoother ride…
Combining Different Assets
Portfolio Target
Target
First Affirmative Managed Mutual Fund Portfolios Historical Composite Performance Since Inception December 31, 1998 through Sept. 30, 2009 NET of all Fees and Expenses
60
80
100
120
140
160
180
Conservative Grow th Balanced Balanced Grow th Capital Grow th Diversif ied Equity S&P 500
Investment StrategiesAsset Allocation ~ Diversification
Hybrid Accounts
Hybrid Accounts
Sustainable Investment Solutions™Asset Allocation ~ Diversification
Who / What is Folio Institutional?
• Internet based platform custody, trading, and clearing
• Provides stock trading services at much reduced costs compared to more traditional broker dealer firms
• Allows for creation of up to seven folios – a basket of up to 100 securities – in each client account
• Two daily 15 minute trading “windows”
Model Folio / Separate Account Managers
Advisor Partners• SRI US Equity Portfolio• Large Cap Growth Portfolio• Large Cap Value Portfolio• SRI International Equity Portfolio• Custom Portfolio Strategies
Azzad Asset Mgt.• International Equity Folio
Bassi Investments• Human Capital SRI Portfolio
Boston Common Asset Mgt.• International Equity Folio• Global Currents ValueCore International
SRI
CLS Investment Firm• Folio 1.0• Folio 0.75
First Affirmative Financial Network• FAFN / KLD: Large Cap SRI Folio • FAFN MidCap SRI Folio• Equity Income SRI Folio • Alternative Assets• High Current Income• Fixed Income Folio• Green Tomorrow Folio• Charles Sandmel: Municipal Bond
Management
Heartland Financial• Equity SRI Portfolio • Balanced Portfolio (50/40/10)• Taxable Bond Portfolio
High Impact Mgt.• High Impact Folio• High Impact Growth & Income
Model Folio / Separate Account Managers
Jantz Morgan• Large Cap SRI 50 Folio
Keel Asset Mgt.• Mid Cap Social Core Folio• Mid Cap Social Value Folio
Legg Mason Investment Counsel• Socially Responsive Core Equity
MMA Capital Mgt.• Growth Index• Value Index
Miller/Howard Investments• Global Utilities and Infrastructure Strategy • Income-Equity Strategy
Pax World Capital Mgt.• SRI Growth Portfolio • SRI GARP Portfolio
Portfolio 21 Investments• Domestic Equity Portfolio
Progressive Asset Mgt.• Large-Cap Growth Social Track Portfolio• Large-Cap Value Social Track Portfolio• Mid-Cap Growth Social Track Portfolio• Mid-Cap Value Social Track Portfolio• Small-Cap Growth Social Track Portfolio• Small-Cap Value Social Track Portfolio• International Social Track Portfolio
SKBA Capital Mgt.• Socially Responsible Value Portfolio
Strategic Partners Investment Advisors
• Taxable and Tax-Exempt Municipal Bond Portfolios
Summit Investment Mgt.• SRI Catholic Values 100 Portfolio
Model Folio / Separate Account Managers
Summit Portfolio Advisors • Socially Responsive Equities Hedged with
Collars
Trillium Asset Mgt.• All Cap Core Equity Portfolio • Large Cap Core Equity• Small/Mid-Cap Core Equity Portfolio • All Cap Core Balanced • Large Cap Core Balanced
Uniplan Real Estate Advisors• REIT Portfolios
Advisor’s Role Is Critical and Clear
• Primary point of contact with the client
• Develops a detailed understanding of client’s situation, financial objectives, risk tolerance, and social priorities
• Monitors performance of the account and of the mutual funds and/or separate account managers selected
• Meets with client periodically to monitor progress
• Notifies First Affirmative of any changes in client’s financial situation
Asset Management Fees
Maximum Fee to client:
First $200,000 1.55%
Next $300,000 1.50%
Next $500,000 1.35%
Next $1,000,000 1.20%
Next $1,000,000 1.10%
Next $2,000,000 1.00%
Next $5,000,000 0.80%
Next $10,000,000 0.70%
Compensation to B/D, RIA, Solicitor
Mutual Fund Separate Portfolios Accounts
First $200,000 1.00% 0.85%
Next $300,000 0.75% 0.81%
Next $500,000 0.65% 0.70%
Next $1,000,000 0.60% 0.61%
Next $1,000,000 0.52% 0.52%
Next $2,000,000 0.50% 0.50%
Next $5,000,000 0.40% 0.40%
Next $10,000,000 0.35% 0.35%
Member Services Program
• ‘Transformative Investing’ Social Network• Social Investment Forum Membership• IW Financial Advisor• Proxy Governance Database on Proxy Resolutions• Professional Profile on First Affirmative Website• Marketing Assistance and Leads• Subscription to Bob Veres’ Inside Information
• Discount FedEx Labels• SRI in the Rockies Conference & Retreat
BaseCamp SRI
Regional Mini-Conferences
2010 BaseCamps:Denver, CONew York, NYSan Francisco, CASeattle, WAPortland, OR
Learn more at http://basecampsri.firstaffirmative.com
21st AnnualSRI in the Rockies Conference
JW Marriott San Antonio Hill Country Resort & SpaSan Antonio, TexasNovember 18–21, 2010www.SRIintheRockies.com
Pre-ConferenceNovember 16-18, [email protected]