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  • Building a sustainable portfolio in line with clients' values

    Angela de Wolff

    Partner conser invest

    Former President sustainable finance geneva

    TBLI November 2013

  • 17% of European pension funds are signatories of the Principles for Responsible Investment (UN PRI)

    UN PRI gather 1000 signatories representing 30 trillion of AUM

    in 2010, nearly 50% of equity mandate RfPs, made explicit reference to ESG

    sustainable investing striking figures...

    22012www.conser.ch

    in 2010, nearly 50% of equity mandate RfPs, made explicit reference to ESG (Environmental, Social and Governance)

    large fortunes (HNWIs) allocate 14% of their wealth to sustainable solutions (Eurosif 2012)

    60% of UK Foundations have defined an ethical investment policy

  • sustainability investing - different motivations for each investor

    regulatory requirements

    comply or explain

    international standards - UN-PRI, CDP, Equator Principles etc.

    long term investing

    quality check

    32013www.conser.ch

    quality check

    transparency

    risk assessment

    value alignment

    consistency with values, principles or mission

    global challenges mitigation

    impact objective

  • RI market : multiple approaches pursuing various sustainability goals

    42012www.conser.ch

  • invest wisely; select sustainable solutions rigorously

    set objectives in terms of financial return and sustainable impacts (personal values)

    identify existing investment solutions1.0

    2.0

    3.0

    4.0

    5.0

    Sustainability investing

    AdvocacyImpact investing

    Value mapping

    Portfolio

    52012www.conser.ch

    assess the quality/consistency of SRI investment process

    require transparency

    0.0

    Ethical sensitivity

    Environmental sensitivity

    Social sensitivity

    Portfolio

  • sustainable funds - a heterogeneous universe requiring thorough selection

    a strong risk / return dispersion

    specific risk - very important 0%2%4%6%8%

    10%

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    62013www.conser.ch

    universe of 244 SRI equity funds from 2007 to 2012sources: Bloomberg, conser

    specific risk - very important when the selection is limited to one or two funds

    statistically comparable to the traditional market

    -12%-10%-8%-6%-4%-2%0%

    0% 5% 10% 15% 20% 25%

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    Active Risk (annualised)

  • our sustainable funds database (1000 screened solutions)

    inventory of existing solutions: inventory of existing solutions: 1000 sustainable funds

    analysis and assignment to different investment styles: proprietary database

    experience

    72013www.conser.ch

    databasedatabase

    own methodology to assess and own methodology to assess and classify funds

    proprietary rating based on a qualitative /quantitative analysis

    know how

  • our value added: sustainability rating vs performance

    qualitative assessment of sustainable funds . A proprietary rating ranging from good (1) to low (4)

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    Rating Conser vs Active Return

    82013www.conser.ch

    positive statistical relationship between the quality of the funds and their active performance 0.5

    1.0

    1.5

    2.0

    2.5

    3.0

    -20% -15% -10% -5% 0% 5% 10%

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    Active Return (annualised)universe of 244 equity SRI funds from 2007 to 2012sources: Bloomberg, conser

  • illustration: balanced sustainable portfolioPhilosophie Pondration

    Classe d'actifs d'investissement G rant Fonds Qualit moyenne

    CASH 10%

    ACTIONSLarge cap suis ses B est in class B - 1 5%S & M suis ses B est in class B + 1 5%S & M europennes B est in class B - 2 5%Large cap internationales Intgration A 2 5%Large cap mergents Intgration B - 2 5%Large cap US S creening positif A 1 5%All cap internationales Thme social A 2 5%

    OBL IG ATIONS

    Qualit

    portefeuille univers

    4 1

    Mdiocre Bon

    92013www.conser.ch

    OBL IG ATIONSInternationales CHF B est in class B + 2 5%Internationales EUR B est in class B + 2 5%Emergents S creening ngatif C 2 7%High Yield S creening ngatif C 2 8%

    MICROC RE DIT

    Mictrof inance Thme social A 2 5,0%

    IMMOBIL IER

    Immobilier europen Thme env. B + 2 10,0%

    HEDGE FUNDMutli-fonds Non durable 7,5%Long/short Non durable 7,5%

    the value mapping defines the portfolio

    construction

  • founded in 2007, conser is 100% dedicated to sustainable finance and responsible investment. We co-manage CHF 100 mn and advise institutional investors with AuM up to 16 bn

    our proprietary tools unable us to advise investors throughout different stages, from understanding and defining objectives, to selecting investment solutions and

    www.conser.ch

    102013www.conser.ch

    from understanding and defining objectives, to selecting investment solutions and to constructing performing sustainable portfolios

    our company relies on a range of experts with extensive experience in sustainable and investment management, strategic advise and shareholder engagement and benefits from an strong board

    as an advisor and asset manager, we are supervised by the Swiss Association of Asset Managers (SAAM)

  • 022 907 71 01

    contact:angela.dewolff@conser.ch

    www.conser.ch022 907 71 01

  • Disclaimer This document is produced for information purposes and does not constitute investment advice,

    nor does it constitute a recommendation or solicitation to buy shares. Any research or analysisused in the preparation of this document is based upon sources believed to be reliable, but norepresentation or warranty is given as to the accuracy or completeness of those sources. Anyopinions, estimates or forecasts may be changed at any time without prior warning.

    This document is not intended for distribution to private investors and is not directed to, orintended for distribution to or use by, any person or entity, who is a citizen or resident of orlocated in any locality, state, country or other jurisdiction where such distribution, publication,availability or use would be contrary to law or regulation.

    The value of an investment and the income received from it can go down as well as up and, onsale; investors may not get back the full amount invested. Past performance is no guarantee of

    122012www.conser.ch

    sale; investors may not get back the full amount invested. Past performance is no guarantee offuture performance. Changes in the rates of exchange may have an adverse effect on the value ofan investment. The prices of small cap stocks tend to be more volatile than the prices of otherstocks and are sometimes less liquid and harder to value than securities of large cap stocks.Emerging markets tend to be less liquid and more volatile than developed markets.Furthermore, these markets face a certain number of specific risks (dramatic changes incurrency rates and modifications of exchange control regulations)

    This document has been issued by CONSER INVEST SA This document may not be reproducedor distributed, either in part or in full, without prior authorisation being obtained fromCONSER INVEST SA.