Transcript Slide 1
SRI: Socially
Responsible Investing
This is a collection of the presentations on
SRI funds and forums from the 9:30 class in
Fall 2008 for Business 356 (Business Ethics)
Eric Grieser
Brian Kooienga
Alex Kron
BJ Sullivan
Meritas SRI
•Canada based
Investment Firm
•Invests 2% in
community
•About 30 years old
•Created by church
research group
•Considers ethics and
environment in addition
to financial outlook
"...good product selection plus
highly qualified and innovative
management..."
POSITIVE SCREENS
International Labor
Standards
Environmental
Impact
Employee Relations
Gender and
Cultural Equity
Policies
NEGATIVE SCREENS
Military/Weapon
Development
Alcohol and
Tobacco
Pornography and
Gambling
Nuclear Power
Fund Overview
-Balanced growth approach with capital
appreciation
-Higher potential returns with fixed income
securities
-Long term growth through foreign investing
-Canadian equity securities which comprise
the Jantzi Social Index
-Income from a short term, low risk investment
through Canadian government
-Income-producing Canadian Equity securities
-Long term growth through undervalued
securities of medium to large capitalization
companies
Corporate Vision
To be the trusted leader and champion of socially
responsible investing in Canada
Environmental, Social, Governance
Policies
Common Industries
Exclusions
Banking
Military
Financial
Tobacco
Oil and Gas
Nuclear
Transportation
Energy
Climate Change
Biodiversity
Human Rights
Fight Sweatshop Conditions
Good Governance
European Social Investment Forum was created in 2001 to
cover socially responsible issues in Europe.
It is a not-for-profit entity funded by affiliate membership and
public grants
Five original Social Investing Forum founding nations:
France
Germany
Italy
Netherlands
UK
Board of Directors – appointed as board members
from Social Investment Forums nations
Decide the main activities and strategic initiatives of
Eurosif
Advisory Council – made up of member affiliates
who guide strategy
Mission: “Address Sustainability through Financial
Markets”
Lobbying
European Commission and European Parliament
Research
Legislation, policies, and practices for ethical
governance
Initiatives
Goals to advance socially responsible investing
Event/Communication
With member affiliates and board
Pay an annual fee
Join with the subscription of the morally responsible
principles of Eurosif
Member Affiliates include:
KPMG, Greenpeace, Fortis Investments, Pioneer
Investments, etc.
Eurosif does not directly invest, but promotes
socially responsible investment
Factors include:
Corporate governance/board members
Intellectual property
Procurement policy and practice
Environmental and social impact of products
Compliance with regulations
Worker’s Rights
Community Involvement
Canadian company
6 different funds
Must be Canadian in order to purchase funds
Are the company’s practices environmentally
sustainable?
Do they comply with relevant laws and industry
regulations?
Is their workforce treated fairly?
Do they have safe products?
Are their corporate governance procedures thorough
and transparent?
Shareholders
Community
Customers
Employees
Employee relations
Diversity
Environmental commitments
Community relations
Corporate governance and citizenship
Human rights
Sustainable products
Strong businesses
Solid growth potential
Reasonable stock price
SRI Funds
Analysis by Bob Forrest, Alex Higbie,
Laura Hund and Dan Sickle
A Fund Brief
Green Century chooses not to invest in companies
with bad environmental and social records in:
Waste disposal
Toxic emissions
Environmental fines and penalties
Product/service performance
Waste and emissions reductions
Corporate citizenship
Recycling
Employee relations
As of 30 June 2008
Sector Allocation
Automobiles & Components
0.25%
Materials
2.39%
Banks
5.17%
Media
2.69%
Capital Goods
4.05%
Pharmaceuticals & Biotech
8.50%
Commercial Services & Supplies
0.56%
Real Estate
0.64%
Consumer Durables & Apparel
1.39%
Renewables & Efficiency
0.64%
Consumer Services
1.52%
Retailing
3.78%
Diversified Financials
6.79%
Semiconductors
3.99%
Energy
6.35%
Software & Services
6.69%
Food & Beverage
5.23%
Technology Hardware
11.18%
Food & Staples Retail
3.09%
Telecom Services
5.94%
Healthcare Equipment & Service
4.98%
Transportation
2.48%
Healthy Living
0.09%
Utilities
Household & Personal Products
5.03%
Cash & Equivalents
Insurance
2.89%
1.23%
2.47%
Green Century opts not to invest in companies who
receive great amounts of revenue from the following:
Tobacco
Alcohol
Gambling
Nuclear
Firearms
This includes any company who receives 2% or more of
their revenues from military weapons
TIAA-CREF
A national financial services organization
and provider of retirement services
Introduced the TIAA-CREF Social Choice
Equity Fund on July 1, 1999
Social Choice Equity Fund
Founded to produce a “favorable long- term total
return…while also giving special consideration to
certain social criteria”
Includes domestic and international investments
Net assets of $602 million
Largest socially screened portfolio nationally and
internationally
Screening Process
Invests 80 percent of net assets in equity securities
Investments screened by KLD Research and Analytics
Broad Market Social Index
Companies struggling in a particular area are
compared to industry peers
KLD Index Screening
Fund Supports:
Safe/Useful products
Good employee
relations
Human rights
Diversity in the
workplace
Corporate philanthropic
activities
Environmental
performance
Fund Declines:
Manufacturing/Selling
of alcohol or tobacco
Revenues in gambling
Manufacturing/Selling
of firearms or
ammunition
Involvement in nuclear
power plants
Northern Trust Global
Sustainability Index Fund
Northern Trust Corporation
Investment Management
Based in Chicago
Assets in custody: over $4.1 trillion
Sustainability Index Fund
Mission
The Fund seeks long-term performance by
investing in companies selected for their
projected investment and social returns.
Factors for Consideration
The Funds include stocks from 24 different
markets for firms that promote:
Environmental
Social
Governmental responsibility
“Sin stocks”
Norwegian Pension Fund
Fund
Background
Managed by Norway’s Ministry of Finance
International assets managed by Norges Bank
Investment Management
It is a continuation of the former Petroleum Fund,
established in 1990
Became the Norwegian Pension in Fund in 2006
Investment
Strategy: 60% in equities and 40% in fixed income
instruments
Actuality: 51.8% in equities and 48.2% in fixed income
instruments
At the end of Q2 in 2008, fund was approximately $158
billion
Negative Screening for
Investment
Serious or systematic human rights violations
Serious violations of individuals’ rights in situations of
war or conflict
Severe environmental damages
Gross corruption
Other particularly serious violations of fundamental
ethical norms
Ethics Powerpoint
“Section 1Katt,Moore,&Thomas”
CalPERS
(California Public Employees’ Retirement System)
By
Ben Katt
CalPERS (The Basics)
Fund for California state employees to provide healthcare
and retirement benefits
Largest Public Fund in the United States
Started in 1932 by state legislation
Nearly $236 billion in assets
1.6 million members
Benefits based on:
Length of Employment
Age
Highest Attained Salary
Employees make monthly contributions, receive pension for
life
Decisions influenced by socially responsible investments
starting in the year 2000
CalPERS Philosophy
Mission Statement
“Our mission is to advance the financial and health security
for all who participate in the System. We will fulfill this
mission by creating and maintaining an environment that
produces responsiveness to all those we serve.”
Social Responsibility Investments starting in 2000
Investments in companies that provide affordable housing,
create jobs, clean up inner city slums
Invest within the state, i.e. CA Real Estate
Dropped investments in countries that restricted free press,
labor unions, and democracy in general ( criticized for
dropping good companies in bad countries)
Dropped companies such as the tobacco industry
CalPERS Focus List
Annual list generated to identify the worst performing
companies in the CalPERS portfolio
Process includes:
1. A quantitative screen
2. A qualitative review
3. An engagement process
Once identified CalPERS uses their size to reform the
company’s governance practices with an emphasis on
accountability, transparency, independence, and discipline
to attempt to increase shareholder value
CalPERS generally uses shareholder proposals as a tool to
reform poor performance
Typically successful in creating value for underperforming
companies by encouraging change and improvement.
CalPERS Focus List Continued
The list serves as an embarrassment for the companies on
the list
Poor Performance
Bad Corporate Governance
Encourages change and improvement
The 2008 List
Cheesecake Factory Inc.
La-Z-Boy Inc.
Hilb Rogal & Hobbs Co.
Invacare Corp
Standard Pacific Corp.
Ariel Investments
By
Joe Moore
Ariel Investments (The Basics)
Founded by John W. Rogers Jr. and his family in
Chicago in 1983 as Ariel Mutual Funds.
Changed name in April to Ariel Investments
Nearly 100 employees.
20% of employees let go on August 14th 2008
Mainly invest in small and mid-cap stocks striving for
long term gain “as a tortoise” not quick returns.
Over $8 billion in total assets (June 2008)
Ariel Fund lost 23% in the previous year ending August
19th 2008 and Ariel Appreciation Fund has lost 14%
(total loss nearly $1 billion.)
Ariel Investments
Mission:
In earnest pursuit of excellent performance and outstanding client service, patience is our overarching virtue. By taking a long-term view, we are able to build our firm around these core values:
Focus
By purchasing stocks that are undervalued, and patiently waiting for the market to recognize their true
worth, we believe we can achieve long-term capital appreciation. Given our commitment to patience, it
makes perfect sense that we have adopted the tortoise, the victor in Aesop’s timeless fable, as our symbol,
and the fable’s moral – slow & steady wins the race – as our creed.
Independent Thinking
We are a team of independent thinkers, industry watchers and disciplined decision makers. We operate
under the premise that financial success is achieved not by chasing the crowd, but by following our own
convictions.
Teamwork
At Ariel, teamwork is how we get the job done. Everyone has the opportunity to put his or her best ideas
forward, and leverage his or her expertise to create the best possible solutions for shareholders. Our
employees share in the rewards and responsibilities of ownership in the firm. Everyone at Ariel is an
owner – from our receptionists to our president. Moreover, by investing our own savings, profit sharing
and retirement dollars in both our firm and the Funds, our personal financial success is squarely aligned
with our clients and shareholders.
Ariel Investments
Focused specifically on:
Small & Mid-cap funds
American Focused
Quality
Leaders in industries
Need to have honesty and integrity throughout the management
Build relationship with competitors and peers in the marketplace who have
bought the stock so they know independent prospective about the
management
BIA associates who help them identify what is important
Sustainable competitive advantage
Above market returns over long periods of time
Expertise
Only invest in industries that they think they know more about than other people
Value
Buy companies at 40% discount to intrinsic value…
Buy company for $.60 when it is valued at $1.
Buy when they are not favored
Highly unpopular stocks are bought
Ariel Investments
My evaluation:
Company is solid in the evaluation of the “social” benefit of
the company.
They do many background checks and other ways of
identifying the companies that they will and won’t deal with.
I would not buy into this investment firm based on the fact
that they are to specific on what qualifies a company to be
able to be invested in, they will not buy a company if they feel
that it is valued at the right price and not underpriced, and
their history (now).
I do not feel it would be economical to suggest others to
purchase into this investment firm, especially given the
amount of money they have currently lost (nearly 12.5% of
their total assets. Also have recently had other major
corporations pull their money out of Ariel.
Walters
Section 1
Tim Walters, Chris Schuler, Sabrina Linden and Steven Timperio
Mennonite Mutual Aid
Roots in the Anabaptist Church
“Church communities putting faith into action by
sharing resources with each other”
Attempt to maximize investment returns subject to
the principles of socially responsible investing.
Offices in Goshan, Indiana
Stewardship Investing
Uses set of core values to determine which companies
they will invest with
Search for “Ideal Corporate Behavior”
Respect Basic Human Rights
Cultural Diversity
Peace and freedom from violence
Community Involvement
Long term environmental Health
Stewardship Investing
Won’t do business with companies they believe don’t
meet these core values
Alcohol, tobacco, gambling
Careful consideration to animal testing
Abortion specific products
Military and weapons
Community First
Have a background of communities supporting each
other
Supportive and involved with community
Dedicate 1% of portfolio to community investments
Also have proactive approaches to human rights, equity
and employment, labor relations, product and service
related investments
Portfolio 21
Mission Statement
We designed Portfolio 21 to address the ecological
risks and opportunities of the investment process in
the 21st century
Evaluation Criteria
Business Models: Lean Manufacturing/Regional
Distribution Centers
Impacts of Products/Services: Product Life Cycle
Analysis, Recycling Programs
Investments: Research and Development of
ecologically superior products
Evaluation Criteria Cont.
Leadership: Views ecological sustainability as
opportunity. Support environmental legislation and
regulation
Environmental Management: Internal Controls on
environmental impacts and liabilities, 3rd party
evaluation of EMS
Environmental Risks and Liabilities: Strategic
planning to reduce greenhouse gas emissions
Selective Investments
Alcohol – No screening
Smoking – No Investment
Gambling – Restricted investment
Weapons/Defense – Restricted Investment
Animal Testing – Restricted Investment
Products/Services – positive investment
Environment – positive investment
Future Sustainability
The goal is to support companies who provide the
essential functions of meeting human needs without
diminishing nature’s ability to support our economy
in the future.
American Trust Allegiance
American Trust is an independent trust company
chartered in 1991 in New Hampshire.
Provides investment management and trust services
for individuals and institutions.
Manages two socially responsible mutual funds.
American Trust Allegiance
American Trust Energy Alternatives Fund (ATEAX)
Focuses on companies leading the transition from
carbon based energy to renewable energy.
Investments in this fund include foreign securities and
many smaller companies, both of which are high risk.
American Trust Allegiance
American Trust Allegiance Fund (ATAFX)
Established in March 1997.
Broadly diversified growth fund with a large cap.
Screens out alcohol, tobacco, pharmaceuticals and gaming stocks.
Invests in small and medium capitalization companies and may
avoid investments for social reasons when it is otherwise
disadvantageous to do so.
American Trust Allegiance
In addition to its two socially responsible mutual
funds, ATA also works individually with clients on
personal socially responsible portfolios.
Also provides services such as Trusteeships and
securities analysis.
Drew Thomas
SRI Project
Guiding Principles
Disciplined Value Investing
Socially Responsible Investing
Low Shareholder Expenses
Portfolio Manager Ownership
Investment Approach
Value
Sustainability
Focus
Patience
Alignment
Socially Responsible Mutual Fund Charts: Screening & Advocacy
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Investing in Socially Responsible Funds
Cara Persichetti
The Way You Invest Matters: Be Part
of the Solution
"triple bottom line“: Not only "investors," they are also concerned
citizens.
the state of the natural environment, how corporations treat their
workers, and the communities in which they operate
Domini Social Equity Fund, Domini European Social Equity Fund,
Domini European Pacasia Social Equity Fund, Domini Pacasia
Social Equity Fund, and Domini Social Bond Fund
Domini 400 Social Index*,SM an index of 400 primarily large-cap
U.S. corporations
Societal Objectives
Ecosystems
Renewable and Alternative Energy Sources
Eco-Efficiency and Resource Conservation
Recycling, Safer Technologies, and Lifecycle Design
Pollution Control and Abatement
Long-Term Environmental Sustainability
Employees
Continuous Improvement in Health and Safety
Fair and Just Compensation and Benefit Programs
Commitments to Diversity in the Workplace
Empowerment and Investments in Training
Solidarity with Unionized Workforce
Investors
Accounting, Credibility, and Business Ethics
Openness in Communications
Commitment to Diversity of Representation
Relationships with Controlling Owners
Suppliers
Labor Practices and Other Human Rights
Quality, Environment, and Other Issues
Diversity Within the Supply Chain
Empowerment and Viability
Societal Evaluations
exclude from our funds companies with mixed records where negatives
substantially outweigh the positives.
evaluate these companies case-by-case, looking for signs of
improvement and positive trends.
sufficient information is usually available to make judgments and
themes that represent goals we believe are reasonably achievable.
Levels of impact 1(lowest)-5(highest)
KLD Research & Analytics, Inc
Andrew Strick
About KLD
Year Founded: 1988
Location: Boston, Massachusetts
Founder: Peter Kinder (co-founder)
Mission
To provide global research and index products to facilitate the
integration of environmental, social and governance factors into the
investment process;
To define, by means of our products and services, accountability
standards that enable investors, managers and fiduciaries to influence
corporate behavior through their investment decisions and share
ownership; and
To effect, through this influence, greater corporate accountability and,
ultimately, a more just and sustainable world.
Clients
Not listed on website
Does give a performance comparison
Screens
5 sources of information
Company
Research partners
Media
Public documents
Government and NGO
7 qualitative issue areas
Environment
Community
Corporate governance
Diversity
Employee relations
Human rights
Product quality and safety
Recommendations
Would I buy or recommend KLD Research & Analytics, Inc.?
NO
Reasons
Lack of information
No definitions
“Window dressing”
Sources
Mission & About KLD
http://www.kld.com/about/index.html
KLD Founding
http://www.kld.com/about/BoardOfDirectors.html
Screens
http://www.kld.com/research/methodology.html
Performance Comparison
http://www.kld.com/newsletter/archive/press/pdf/200808_Index_Perf
ormance.pdf
Calvert Socially Responsible
Investing
Courtney Hanson
Calvert Socially Responsible
Investing
Background: Calvert Group
founded in 1976 is headquartered in suburban Washington, D.C
400,000 investors in Calvert with over $14 Billion in assets.
Double Diligence research process approach emphasizes rigorous
fundamental research and a thorough assessment of corporate
integrity.
Core belief - corporations and mutual funds should be governed and
managed for the benefit of their shareholders.
Equity Portfolio
3 share classes
Class A inception 8/24/98 (4.75%)
Minimum
Initial investment $1,000
Class B 3/31/98
Subsequent
investment $250
Class C 3/1/94
The portfolio invests primarily in the common stocks of U.S.
Large-cap companies.
Atlanta Capital Management Company analyses and identifies
high-quality, growth stocks that are favorable prices.
Funds seek to invest in
companies that…
Good environmental compliance and performance records
Safe and healthy work environments
Responsible corporate citizens abroad as well as at home
Respect the rights of indigenous peoples
Produce products that enhance the health or quality of life
Participate in Philanthropy
Have sound business ethics policies and practices
And companies that don’t…
Have recent significant environment fines
Have human right problems
Abuse of animals
Manufacture tobacco products
Significantly involved in the manufacture of alcoholic
beverages
Direct involvement in gambling operations
Top companies in fund as of
6/30/08
FMC Technologies Inc
Cisco Sys Inc
CVS Caremark corp.
Medtronic Inc
Novartis ag
Questar corp.
Microsoft corp.
Pax World Balanced SRI Fund
Erika Nickel
Overview
Inception: August 10, 1971
Type of Fund: Balanced Fund
Minimum Investment:
$250 Individual
$500,000 institutional
Returns for Current Year: -8.65%
Yields of Current Year: 1.83%
Objectives
Financial Stance:
Seek long-term growth of capital
Target forward thinking companies with sustainable
business
Maintain sectors that will increase quicker than the GDP
Societal Concerns
Stances:
Protect the environment, further equality, encourage
sustainable development and promote peace
Restrict:
Animal Testing, Alcohol, Militant Fighting and Weapons,
Gambling & Tobacco
Seek Out:
Investments with proactive stances on community
investment, community relations, environmental issues,
human rights and labor relations
Investment Advise
Yes
Is socially responsible
Will bounce back from the market falls
Investing in Socially Responsible Funds
Cara Persichetti
The Way You Invest Matters: Be Part
of the Solution
"triple bottom line“: Not only "investors," they are also concerned
citizens.
the state of the natural environment, how corporations treat their
workers, and the communities in which they operate
Domini Social Equity Fund, Domini European Social Equity Fund,
Domini European Pacasia Social Equity Fund, Domini Pacasia
Social Equity Fund, and Domini Social Bond Fund
Domini 400 Social Index*,SM an index of 400 primarily large-cap
U.S. corporations
Societal Objectives
Ecosystems
Renewable and Alternative Energy Sources
Eco-Efficiency and Resource Conservation
Recycling, Safer Technologies, and Lifecycle Design
Pollution Control and Abatement
Long-Term Environmental Sustainability
Employees
Continuous Improvement in Health and Safety
Fair and Just Compensation and Benefit Programs
Commitments to Diversity in the Workplace
Empowerment and Investments in Training
Solidarity with Unionized Workforce
Investors
Accounting, Credibility, and Business Ethics
Openness in Communications
Commitment to Diversity of Representation
Relationships with Controlling Owners
Suppliers
Labor Practices and Other Human Rights
Quality, Environment, and Other Issues
Diversity Within the Supply Chain
Empowerment and Viability
Societal Evaluations
exclude from our funds companies with mixed records where negatives
substantially outweigh the positives.
evaluate these companies case-by-case, looking for signs of
improvement and positive trends.
sufficient information is usually available to make judgments and
themes that represent goals we believe are reasonably achievable.
Levels of impact 1(lowest)-5(highest)
KLD Research & Analytics, Inc
Andrew Strick
About KLD
Year Founded: 1988
Location: Boston, Massachusetts
Founder: Peter Kinder (co-founder)
Mission
To provide global research and index products to facilitate the
integration of environmental, social and governance factors into the
investment process;
To define, by means of our products and services, accountability
standards that enable investors, managers and fiduciaries to influence
corporate behavior through their investment decisions and share
ownership; and
To effect, through this influence, greater corporate accountability and,
ultimately, a more just and sustainable world.
Clients
Not listed on website
Does give a performance comparison
Screens
5 sources of information
Company
Research partners
Media
Public documents
Government and NGO
7 qualitative issue areas
Environment
Community
Corporate governance
Diversity
Employee relations
Human rights
Product quality and safety
Recommendations
Would I buy or recommend KLD Research & Analytics, Inc.?
NO
Reasons
Lack of information
No definitions
“Window dressing”
Sources
Mission & About KLD
http://www.kld.com/about/index.html
KLD Founding
http://www.kld.com/about/BoardOfDirectors.html
Screens
http://www.kld.com/research/methodology.html
Performance Comparison
http://www.kld.com/newsletter/archive/press/pdf/200808_Index_Perf
ormance.pdf
Calvert Socially Responsible
Investing
Courtney Hanson
Calvert Socially Responsible
Investing
Background: Calvert Group
founded in 1976 is headquartered in suburban Washington, D.C
400,000 investors in Calvert with over $14 Billion in assets.
Double Diligence research process approach emphasizes rigorous
fundamental research and a thorough assessment of corporate
integrity.
Core belief - corporations and mutual funds should be governed and
managed for the benefit of their shareholders.
Equity Portfolio
3 share classes
Class A inception 8/24/98 (4.75%)
Minimum
Initial investment $1,000
Class B 3/31/98
Subsequent
investment $250
Class C 3/1/94
The portfolio invests primarily in the common stocks of U.S.
Large-cap companies.
Atlanta Capital Management Company analyses and identifies
high-quality, growth stocks that are favorable prices.
Funds seek to invest in
companies that…
Good environmental compliance and performance records
Safe and healthy work environments
Responsible corporate citizens abroad as well as at home
Respect the rights of indigenous peoples
Produce products that enhance the health or quality of life
Participate in Philanthropy
Have sound business ethics policies and practices
And companies that don’t…
Have recent significant environment fines
Have human right problems
Abuse of animals
Manufacture tobacco products
Significantly involved in the manufacture of alcoholic
beverages
Direct involvement in gambling operations
Top companies in fund as of
6/30/08
FMC Technologies Inc
Cisco Sys Inc
CVS Caremark corp.
Medtronic Inc
Novartis ag
Questar corp.
Microsoft corp.
Pax World Balanced SRI Fund
Erika Nickel
Overview
Inception: August 10, 1971
Type of Fund: Balanced Fund
Minimum Investment:
$250 Individual
$500,000 institutional
Returns for Current Year: -8.65%
Yields of Current Year: 1.83%
Objectives
Financial Stance:
Seek long-term growth of capital
Target forward thinking companies with sustainable
business
Maintain sectors that will increase quicker than the GDP
Societal Concerns
Stances:
Protect the environment, further equality, encourage
sustainable development and promote peace
Restrict:
Animal Testing, Alcohol, Militant Fighting and Weapons,
Gambling & Tobacco
Seek Out:
Investments with proactive stances on community
investment, community relations, environmental issues,
human rights and labor relations
Investment Advise
Yes
Is socially responsible
Will bounce back from the market falls
Walters
Section 1
Tim Walters, Chris Schuler, Sabrina Linden and Steven Timperio
Mennonite Mutual Aid
Roots in the Anabaptist Church
“Church communities putting faith into action by
sharing resources with each other”
Attempt to maximize investment returns subject to
the principles of socially responsible investing.
Offices in Goshan, Indiana
Stewardship Investing
Uses set of core values to determine which companies
they will invest with
Search for “Ideal Corporate Behavior”
Respect Basic Human Rights
Cultural Diversity
Peace and freedom from violence
Community Involvement
Long term environmental Health
Stewardship Investing
Won’t do business with companies they believe don’t
meet these core values
Alcohol, tobacco, gambling
Careful consideration to animal testing
Abortion specific products
Military and weapons
Community First
Have a background of communities supporting each
other
Supportive and involved with community
Dedicate 1% of portfolio to community investments
Also have proactive approaches to human rights, equity
and employment, labor relations, product and service
related investments
Portfolio 21
Mission Statement
We designed Portfolio 21 to address the ecological
risks and opportunities of the investment process in
the 21st century
Evaluation Criteria
Business Models: Lean Manufacturing/Regional
Distribution Centers
Impacts of Products/Services: Product Life Cycle
Analysis, Recycling Programs
Investments: Research and Development of
ecologically superior products
Evaluation Criteria Cont.
Leadership: Views ecological sustainability as
opportunity. Support environmental legislation and
regulation
Environmental Management: Internal Controls on
environmental impacts and liabilities, 3rd party
evaluation of EMS
Environmental Risks and Liabilities: Strategic
planning to reduce greenhouse gas emissions
Selective Investments
Alcohol – No screening
Smoking – No Investment
Gambling – Restricted investment
Weapons/Defense – Restricted Investment
Animal Testing – Restricted Investment
Products/Services – positive investment
Environment – positive investment
Future Sustainability
The goal is to support companies who provide the
essential functions of meeting human needs without
diminishing nature’s ability to support our economy
in the future.
American Trust Allegiance
American Trust is an independent trust company
chartered in 1991 in New Hampshire.
Provides investment management and trust services
for individuals and institutions.
Manages two socially responsible mutual funds.
American Trust Allegiance
American Trust Energy Alternatives Fund (ATEAX)
Focuses on companies leading the transition from
carbon based energy to renewable energy.
Investments in this fund include foreign securities and
many smaller companies, both of which are high risk.
American Trust Allegiance
American Trust Allegiance Fund (ATAFX)
Established in March 1997.
Broadly diversified growth fund with a large cap.
Screens out alcohol, tobacco, pharmaceuticals and gaming stocks.
Invests in small and medium capitalization companies and may
avoid investments for social reasons when it is otherwise
disadvantageous to do so.
American Trust Allegiance
In addition to its two socially responsible mutual
funds, ATA also works individually with clients on
personal socially responsible portfolios.
Also provides services such as Trusteeships and
securities analysis.