Transcript of A Practical Guide to Sustainable Investing
PowerPoint PresentationA Practical Guide to Sustainable Investing
January 13, 2020 AOA 2020 Conference, Coronado Bay, CA
Graystone Consulting 3562 Round Barn Circle Santa Rosa, CA
95403
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Topics for Discussion
What is Investing with Impact?
Investments made with the intention to generate a measurable,
positive social and/or environmental impact alongside a financial
return.
Investing with
Impact Goals
Positive social and/or environmental outcomes driven by values and
mission
Presenter
MAINSTREAM INVESTORS
Individuals
Women and men across generations, especially Millennials and Ultra
High Net Worth individuals and families are seeking to generate a
positive legacy with their capital and align investments with
impact objectives
Endowments
Seeking risk management, return potential, respond to stakeholder
demand and motivated to align investments with the mission
statement to maximize positive impact
Donor Advised Funds
Maximize impact of charitable assets by investing in companies that
seek to generate positive environmental and social return while
waiting to grant out funds
Entrepreneurs
Seeking innovative investment options that mitigate risk, have
return potential and provide complementary personal portfolio to
corporate interests and assets
Insurance Companies
Seeking to respond to evolving policy/regulations, and utilize
social and governance to identify embedded long-term risk and also
seek to benefit from opportunities
Religious Institutions
Foundations / Non-Profits
Aligning all pools of capital with the organization’s mission
statement to maximize positive impact, mitigate risks and drive
long term value
Defined Benefit/Defined Contribution Plans
Seeking sustainable retirement investment options to drive long-
term value, mitigate risks. Respond to stakeholder demand and
attract talented employees to organizations
Presenter
employment with a
individual investor
individual investor
Source: Morgan Stanley Institute for Sustainable Investing,
Sustainable Signals: New Data from the Individual Investor, August
2017
2x 86% 3x
S&P 500 Index
11.1%
The MSCI KLD 400 Index of companies that meet best-in- class
environmental, social and governance (ESG) criteria.
May 1, 1990 – September 30, 2019 (Single Computation) Cumulative
Return (%)
Proof in the Performance
Source: Bloomberg, MSCI, Morgan Stanley Wealth Management. Past
performance is no guarantee of future results. The index returns
are illustrative and shown for comparative purposes only. They do
not represent the performance of any specific investments. An
investor cannot invest directly in an index.
Indices that incorporate environmental, social and governance (ESG)
factors have generally performed in line with, or better than,
conventional indices. For example, a $1 invested in line with the
holdings reflected in the sustainable index in 1990 grew to $1,872
versus $1,674 for a traditional index through September 30,
2019.
Cumulative Excess Returns (Right Axis)
MSCI KLD 400 Index (Left Axis) S&P 500 Index (Left Axis)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
1990 1993 1996 1999 2002 2005 2008 2011 2014 2017
$1,674
$1,872
2019
Presenter
RESTRICTION SCREENING
ENVIRONMENTAL, SOCIAL & GOVERNANCE (ESG ) INTEGRATION THEMATIC
EXPOSURE IMPACT INVESTING
Intentionally avoid certain companies, industries or countries due
to values or risk-based criteria
Proactively consider ESG criteria alongside financial analysis to
identify opportunities and risks during investment process
Themes solving sustainability- related domestic and global
challenges across sectors, populations or geographies
Investment funds delivering specific positive social and/or
environmental impacts through their business model, products and
services
Investment Characteristics
• Differentiated by screening criteria including issue area and
revenue threshold used
• Differentiated by ESG data integration process – for example ESG
momentum, ESG as a screen, ESG as a tool to engage with companies
owned and/or ESG as part of the valuation model
• Differentiated by macro- analysis, sustainability research and
sector focus
• Differentiated by impact approach, regional focus, liquidity and
more
• May have investor qualification restrictions
Investment Examples
• Strategy (mutual fund, exchange traded fund, separately managed
account or private fund) that does not own certain companies,
industries or countries due to values misalignment or risk
• Strategy (mutual fund, exchange traded fund, separately managed
account or private fund) incorporating analysis of ESG performance
into equity and fixed income valuation process or using ESG data as
a factor to filter investable universe
• Strategy (mutual fund, exchange traded fund, separately managed
account or private fund) investing in companies with significant
exposure to sustainability themes such as renewable energy,
affordable housing, faith-based values etc. across equity and fixed
income
• A private market strategy (e.g. venture capital, private equity,
multi-asset fund, hedge fund etc.) focused on affordable housing in
low-income communities, emerging consumers, workforce training,
etc.
PUBLIC + PRIVATE MARKETS PRIVATE MARKETS
MINIMIZE OBJECTIONABLE IMPACT CREATE TARGETED IMPACT
Our framework clarifies the spectrum of approaches that investors
of all sizes can pursue
Definition
Shareholder or company engagement and impact reporting play a
critical role in differentiating managers across approaches
Presenter
Promote better gender diversity and equality through increased
exposure to companies committed to employing and advancing women in
high-level leadership roles
CLIMATE CHANGE AND FOSSIL FUEL AWARE INVESTING
Support the transition to a lower carbon economy by considering
exposures to climate solutions, environmental leaders and fossil
fuel reserves in portfolios
Investing with Impact Thematic Exposure
1. 2017 Sustainability Highlights, Global Sustainable Finance,
Morgan Stanley, 2018
MISSION ALIGN 360° INVESTING
Evaluate, align and activate all pools of capital (human,
philanthropic and financial) towards the theme of your choice to
accomplish your organization’s unique mission statement
FAITH-BASED INVESTING
Align investment portfolio with principles in accordance with
specific religious values
We help you clarify the range of approaches and how to implement
investment solutions based on theme
Presenter
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• What social and environmental risks and opportunities does my
organization help solve?
• How can these be addressed through investments?
• Are there any investments that my organization currently makes
that we consider Investing with Impact?
• What are the legal and operating constraints that shape the
approach we can take to Investing with Impact?
• How can I work with my Advisor to learn more about the different
approaches to Investing with Impact?
• Does it make sense for our organization to develop a
mission-aligned Investment Policy Statement?
Questions for Institutions to Consider
FOR INSTITUTIONS
Implementation at the CSU ESG Criteria SRI/Divestment Impact Proxy
Voting
Consistent w/Policy
Fund Managers
Bakersfield X Chancellor's Office X Coal X
Channel Islands X X X X X Chico X X Dominguez Hills X East Bay
Fossil Fuels Fresno X X Fullerton X X X X Humboldt X Fossil
Fuels,
Defense, Alcohol,
Signed UN Principles for Responsible Investment
Long Beach X Los Angeles X X Maritime Made a conscious decision to
not pursue ESG, SRI Monterey Bay Made a conscious decision to not
pursue ESG, SRI Northridge X Pomona X X Sacramento X San Bernardino
X San Diego X San Francisco X Fossil Fuels X San Jose San Luis
Obispo Made a conscious decision to not pursue ESG, SRI San Marcos
Sonoma X Stanislaus
Source: The California State University
Sheet1
Green Fund
Notes
Bakersfield
X
X
Fresno
X
X
Fullerton
X
X
X
X
Humboldt
X
Redfearn, Lori: Redfearn, Lori: Fossil Fuel, Defense, Alcohol,
casinos and tobacco
10% of portfolio
Signed UN Principles for Responsible Investment
Long Beach
Monterey Bay
Northridge
X
Pomona
X
X
Sacramento
X
Redfearn, Lori: Redfearn, Lori: Fossil Fuel, Defense, Alcohol,
casinos and tobacco
Redfearn, Lori: Redfearn, Lori: 10% of portfolio
X
San Marcos
Divestment
Affordable Housing
Gender Equality
• Proactively creating a cohesive policy may reduce the need to
reactively implement “negative” screens in the portfolio.
• Consider a fully integrated ESG approach?
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• Step 1 – Gauging Interest Set as an official Investment Committee
agenda item Educational overview on trends
• Step 2- Mission Alignment & Building Consensus Review mission
of institution Search for alignment Additional education Overcoming
Objections
• Step 3 – Board Education Educational Retreat
• Step 4 – Investment Policy Development • Step 5 –
Implementation
Holdings Analysis Performance Attribution Asset Allocation
Considerations Search & Selection Active vs. Passive
Considerations Time Line: Carve Out vs. Migration vs. Offset
• Step 6 – Board Recommendation Investment Policy Let’s go!
Implementation Road Map
• Set as an official Investment Committee agenda item • Educational
topics
• What is sustainable investing? • History • Current trends •
Framework
• Negative Screens • ESG (Positive Screens) • Thematic Exposure •
Impact (private markets) • Shareholder engagement & advocacy •
Implementation
• Fiduciary Considerations • Performance Considerations
Step 1 – Gauging Interest
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• Meeting Policy Objectives – Mission alignment: What is the
mission of the Foundation and are they being reflected in the
portfolio?
• UPMIFA – The “prudent man rule” embodied in UPMIFA requires that
fiduciaries act with the care and
diligence so as to avoid making investment decisions that result in
unintended outcomes.
• Resources: – Best Interests in the Long Term: Fiduciary Duties
and ESG Integration, Susan N. Gary, University of
Oregon February 2018
Step 1 Cont. - Fiduciary Considerations
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• UN Sustainable Development Goals (SDGs) – The Sustainable
Development Goals (SDGs) are a set of 17 integrated and indivisible
global goals
which are further broken out into 169 targets that balance the
three dimensions of sustainable development: economic, social and
environmental. The Sustainable Development Goals are the blueprint
to achieve a better and more sustainable future for all. They
address the global challenges we face, including those related to
poverty, inequality, climate change, environmental degradation,
peace and justice.
• Future Fit Business – The Future-Fit Business Benchmark offers a
holistic framing for companies and investors to
consider all their social and environmental impacts. It provides a
robust scientific definition of sustainability, enabling a
strategic approach for achieving sustainability, and it aligns with
the SDGs.
Step 1 cont. - Educational Resources
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• OBJECITVE: • Build consensus to bring a resolution to the
Board
• Review Mission of Institution • Make sure everyone has a common
understanding of the mission and how it may be reflected in
the investment portfolio. • Are there any obvious areas of
focus?
• Example: Dominguez Hills Philanthropic Foundation focus on
minority owned asset managers
• Gathering Perspective • Use a survey tool to poll the key stake
holders (include the Board if interested)
• Conduct survey before meeting • Present results at investment
committee meeting
• Expect wide divergences in opinion! • Example CSU Foundation: Key
Stake Holders
• Build Consensus • Objections?
• Additional Education? • If negative screens are used: Conduct
tracking error studies to determine the feasibility
Step 2- Mission Alignment & Building Consensus
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• OBJECTIVE: • Get a green light from the Board to continue the
process. • Make sure they understand their fiduciary responsibility
and that the process can be delegated to
the investment committee.
• Educational Overview • A retreat is the best case scenario •
Requires at least 1 hour of education
• Investment Committee Update • Suggest a “Road Map” for
Implementation
• It is important to have a “champion” who will carry the torch.
Will it be a committee member or your consultant?
Step 3 – Board Education
• Develop Investment Policy Language
• The statement should set clear goals and objectives related to
sustainable investing which are linked to the mission of your
institution.
Resources: Sample ESG Language: • Intentional Endowments website
> Roadmap for Endowments > Sample Investment Policy
Statements
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• Holdings Analysis • How is the current portfolio activated
relative to the newly drafted policies?
• Performance Attribution • Are there any forecasted changes to the
performance characteristics? • What is the tracking error
budget?
• Asset Allocation Considerations • What do you do with hedge
funds, private equity and real assets?
• Search & Selection • Active vs. Passive Considerations
• Develop Time Line: • Carve Out, Migration, and/or thematic
exposure?
Step 5 – Implementation
• Fiduciary Roadmap • History of fiduciary process
• Investment Policy • Summary of key changes • Clean document
• Portfolio Construction • Considerations under consideration
• Timeline for implementation • Suggested timeline for
implementation
Step 6 – Board Recommendation
• Measuring alignment with sustainability objectives • Manager
alignment? • Security level alignment?
• Measuring exposure to areas of concern • Aggregate exposure at
manager level? • Security level exposure?
• Measuring activation • How much of the portfolio is currently
activated toward objectives?
Monitoring for IPS Compliance
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• $309 Billion *in Institutional Advisory Assets • 50+ teams
located across the country, each with a dedicated
specialty including: • Foundation and Endowment • Defined Benefit
Consulting • Annuity/401(k) Consulting • Taft-Hartley
• Model delivers national presence by complementing consultants to
clients according to specific needs **
• Your Consulting Team: • Understands the uniqueness of the client
• Assists in the creation and review of the Investment Policy
Statement • Recommends asset allocation to achieve stated goals •
Recommends managers and/or manages the portfolio risk
by leveraging centralized intellectual capital • Evaluates
portfolio on an ongoing basis to ensure policy
obligations are being met
• Specializes in Foundation and Endowment Consulting • Extensive
experience working with Community Foundation clients • Capacity to
ensure Graystone delivers “white glove” service and an excellent
client experience
* As of January 17, 2019. Morgan Stanley Fourth Quarter Earnings.
**www.graystoneconsulting.com
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70+ Research Professionals Traditional and Alternative
Investments
Global Investment Committee
Mike Wilson. Chief Investment Officer and Chief US Equity
Strategist
Lisa Shalett, Chief Investment Officer, Head of Wealth Management
Investment Resources
7 Member Committee Establishes Macroeconomic themes and asset
allocation inputs
Graystone Advisory Board
12 Member Board
Graystone Consulting Chief Executive Officer
Jodie Gunzberg, Managing Director Graystone Consulting Chief
Investment Strategist
John Pratt, Managing Director Graystone Consulting Director of
Platforms
Michael DiBiasio, Managing Director Graystone Consulting Director
of Business Strategy & Development
Graystone – Santa Rosa Office Todd Au, Institutional
Consultant
Tony Parmisano, Institutional Consultant 8 Member Team
Graystone Investment Committee
Chair - Jodie Gunzberg, Managing Director Analysts from 50+
Graystone teams
Bob Mandel, Managing Director Director of Graystone
Consulting
Kara Julian, Managing Director Graystone Consulting Chief
Operations Officer
CSU Auxiliaries
Sustainable Investing Research & Solutions
84% Women focus at least
partially on making a
positive impact with their
are interested in socially
Women Control More Capital and Seek to Create Positive Impact
Presenter
New Proof of Performance
• Sustainable funds were in line with comparable traditional funds
in terms of performance, and there was not a statistically
significant difference in total returns
• Sustainable funds experienced a 20% smaller downside deviation
than traditional funds
− During the 2018 market downturn, the median sustainable fund
outperformed the median traditional fund by 1.44%, 0.84% and 0.22%
for U.S. Equity, International Equity and Taxable Bonds,
respectively, suggesting that sustainable investment strategies may
potentially offer downside risk mitigation in times of high
volatility.2
Morgan Stanley’s Institute for Sustainable Investing conducted a
proprietary study1 on nearly 11,000 mutual funds over 14 years. The
results showed that sustainable investments were in line with the
performance of traditional investments1:
1. Morgan Stanley Institute for Sustainable Investing ,Sustainable
Reality: Analyzing Risk and Returns of Sustainable Funds, 2019. 2.
Compares the performance of sustainable funds to traditional funds
from 2004 to 2018 using Morningstar data on exchange-traded and
open-ended mutual funds active in any given year of this period. A
total of 10,723 funds were analysed. We compared their performance
on total returns, a measure of performance net-of-fees, and
downside deviation, a measure of risk. For any methodological
inquiries, please contact sustainability@morganstanley.com. Results
for different time periods and different asset classes may be
different and not statistically significant.
Presenter
• Shareholder communications and proxy materials are delivered to
all clients seamlessly via Morgan Stanley’s eDelivery
• Third party managers on the Investing with Impact Platform employ
shareholder engagement on behalf of our clients
• External organizations focused on shareholder engagement issues
provide insight on corporate actions for investors
Top 5 ESG Issues by Number of Shareholder Proposals Filed
(2016-2018)(1)
Drive positive environmental and/or social change through active
and continuous dialogue with corporates
Shareholder Engagement Approaches Include:
• Dialogue with company executives
• Letter-writing and email campaigns
• Shareholder meetings
• Shareholder resolutions
• Stakeholder engagement
A critical tool employed by managers across the Investing with
Impact Framework is shareholder engagement. This tool complements
investment approaches across the spectrum and provides a way for
clients to drive positive change across environmental, social or
governance-related areas of concern in their portfolio.
1. Source: ISS, Sustainable Investments Institute
0 50 100 150 200 250 300 350 400
Proxy Access
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Investing with Impact Questions Incorporated into Due Diligence for
All Managers
GIMA has dedicated resources to analyze each manager’s approach to
sustainable investing. Managers that meet a higher bar across 5 key
dimensions are considered for the Investing with Impact
Platform.
Sample questions from Global Investment Manager Analysis (GIMA)’s
initial request for information
• What Investing with Impact approaches are employed by the manager
(Restriction Screening, ESG Integration, Thematic Exposure or
Impact Investing)?
• Describe your ESG/impact investment philosophy and investment
process.
• How diverse is the manager’s staff and leadership (e.g. gender,
multi-cultural, etc.)?
• Which of the United Nations Sustainable Development Goals (SDGs),
if any, is an intentional focus area?
9% of Managers
Impact Platform
Process
Shareholder Engagement: Drive positive environmental change through
active dialogue with invested companies.
With awareness of the impact of climate change on investments
increasing, we can help investors achieve market-rate financial
returns while supporting a transition to a lower-carbon
economy.
Understanding The Risks & Opportunities
“Know what you own”: assess exposure to fossil fuels / companies
with large carbon reserves.
INCREASE CLIMATE OPPORTUNITIESREDUCE CLIMATE RISKS
FOSSIL FUEL-AWARE Eliminate or reduce exposure to companies
producing coal, oil and nuclear energy or owning significant fossil
fuel reserves.
Investors interested in proactively seeking opportunities to
enhance environmental impact without sacrificing market-rate return
have access to a range of climate change and fossil fuel aware
investments.
Developing A Climate Aware Investment Strategy
EVALUATE DEFINE
Determine any limitations (e.g., comingled funds) that may limit
implementation options.
Consider overall climate change and fossil fuel aware
objectives.
Integrate climate change and fossil fuel aware objectives with
financial objectives through an investment plan or policy
statement
CLIMATE SOLUTIONS Focus on investable themes that seek to improve
climate change mitigation and / or adaption solutions.
ENVIRONMENTAL LEADERS Exposure to all sectors and industry groups
including energy, but only in companies that reflect the best
environmental practices relative to industry peers.
Presenter
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The Gender Advantage: Integrating Diversity into Financial
Decisions • A growing body of evidence points to better financial
performance associated with higher levels of gender diversity,
defined as a balance in
representation, empowerment and economic opportunity.
Morgan Stanley’s Global Quantitative Team looked at 1,600 global
stocks across five key areas of gender diversity:
Stocks with high gender diversity delivered meaningfully better
risk-adjusted returns than those with low gender diversity.
(1)
• Equality in Pay • Empowerment • Representation
1. Source: Gender Diversity Continues to Work. Morgan Stanley
Global Quantitative Team. 2016.
What Is Gender Diversity? Gender Diversity Makes An Impact Gender
diversity is not about advocating one gender over another, but
rather an examination of how genders – through a balance in
representation and inclusion – can make a social impact and drive
value in different settings, including companies you may invest
in.
INCREASE GENDER DIVERSITY OPPORTUNITIESMINIMIZE GENDER DIVERSITY
RISKS
• Diversity Policies • Work/Life Balance Programs
GENDER DIVERSITY AS SCREEN GENDER LENS INVESTINGGENDER DIVERSITY
LEADERS
• Seek companies with leading gender diversity records, including
strong policies and programs, diverse boards and management and
work / life balance programs
• Gender diversity is both a risk and opportunity to identify
long-term outperformance
Proactive approach, intentionally focused on companies or funds
seeking to drive greater gender equality through channels, such as:
• Workplace equality • Access to capital • Products and services
that benefit
women and girls
• Use restriction screens to avoid exposure to companies with poor
gender diversity records, such as weak policies, poor supply chain
safety records or involvement in the pornography industry
• Gender diversity primarily a risk; not proactively
transformative
Presenter
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Understanding Your Portfolio’s Impact Measurement and reporting are
central to advancing the positive impact of your investments. You
cannot manage what you are not measuring.
Impact reporting has evolved into a complex global network of
organizations, data providers and rating systems that can be
challenging to navigate.
Current Landscape:
15+ organizations such as the Global Impact Investing Network and
the Sustainability Accounting Standards Board are building the
infrastructure to drive the effective use of material
sustainability information by investors
100+ data providers can now deliver environmental, social and
governance (ESG) insights across multiple levels (company, manager
and portfolio-level) to help determine ESG-driven risks and
opportunities
Emerging ratings systems assess ESG performance, but are either
over-simplified, non-customizable and struggle to capture
intentional sustainable investing approaches
Solution We have vetted and partnered with leading ESG data
providers – MSCI ESG Research, ISS-ESG and Fossil Free Indexes – to
deliver a customized impact reporting tool exclusively for Morgan
Stanley
Financial Advisors and clients. With us, you can understand and
monitor your impact to make informed investment decisions based on
your unique impact priorities.
Investors have long sought the ability to understand the
environmental and social impact of their investments; however,
impact data and reporting is complex.
Problem
The description of Morgan Stanley Impact Quotient and the reports
that it generates are solely for informational purposes. You should
not definitively rely upon it or use it to form the definitive
basis for any decision, contract, commitment or action whatsoever,
with respect to any proposed transaction or otherwise.
Presenter
Introducing Morgan Stanley Impact Quotient TM: A Client-Centric
Approach to Impact Reporting
Available exclusively to Morgan Stanley clients, Morgan Stanley
Impact Quotient TM is a new suite of capabilities designed to help
you understand the environmental and social impact of your
investments.
The process is designed to capture impact priorities and assess
alignment across multiple dimensions:
IMPACT PREFERENCES
Social and / or environmental impacts sought to be aligned within
an investment portfolio
ISSUES OF CONCERN
Sectors, issues or business activities found to be objectionable or
to be avoided with an investment portfolio
SUSTAINABLE DEVELOPMENT GOALS
United nations supported framework aimed at ending poverty,
protecting the planet and ensuring prosperity for all
TARGETED POPULATIONS FOR IMPACT
Geographies or groups intended to experience positive impacts
associated with selected investments
IMPACT THEMES & OBJECTIVES
FAITH-BASED APPROACHES
Faith can serve as a lens or set of considerations within an
investment portfolio
PORTFOLIO PREFERENCES
Portfolio integration, targeted curve out, portfolio tilt, or
integration when new cash or investment changes
AVAILABLE INVESTMENT OPPORTUNITIES
Public markets (e.g., Public equities fixed income, and multi
Asset) and/or alternative investment (e.g., Real Assets, Private
Equity)
APPROACHES TO INVESTING WITH IMPACT
Restriction screening, ESG integration, thematic exposure, impact
investing and shareholder engagement
The description of Morgan Stanley Impact Quotient and the reports
that it generates are solely for informational purposes. You should
not definitively rely upon it or use it to form the definitive
basis for any decision, contract, commitment or action whatsoever,
with respect to any proposed transaction or otherwise.
Presenter
your investments with data-driven
insights customized to your
to better align your investments
over time.
Families seeking to align portfolios to their legacies
Why Engage With Morgan Stanley Impact Quotient? Who is Morgan
Stanley Impact Quotient Designed For?
Evaluate and Enhance the Alignment of Your Investments
The description of Morgan Stanley Impact Quotient and the reports
that it generates are solely for informational purposes. You should
not definitively rely upon it or use it to form the definitive
basis for any decision, contract, commitment or action whatsoever,
with respect to any proposed transaction or otherwise.
Presenter
The Future is Bright for Investing with Impact
1. Morgan Stanley Institute for Sustainable Investing, Sustainable
Signals: New Data from the Individual Investor, 2017 2. Vision
2050: The New Agenda for Business, World Business Council for
Sustainable Development, 2010 3. Morgan Stanley & Co.
Sustainability Research 4. ESG = Environmental, social and
governance
of individual investors believe companies with leading
sustainability practices may be better long-term investments1
71%
Year that the business opportunities for sustainability-focused
companies are expected to be between $3 trillion and $10 trillion
annually, or up to 4.5% of global GDP2
2050
and 80% of U.S. money
managers2 say their decision to offer ESG4
strategies is in response to client demand
75%
Morgan Stanley is well-positioned to help deliver impact via
customized solutions based on clients’ financial and impact
goals
Companies are improving their competitive position by adjusting
their business strategies to address long- term global themes /
mega- trends, including: Climate Change, Health & Wellbeing,
Inclusion, Resource Management, Safety & Security3
Presenter
Jamie Martin Executive Director Global Sustainable Finance
Jamie Martin is an Executive Director in Morgan Stanley’s Global
Sustainable Finance group, responsible for delivering sustainable
investing products and solutions to the firm's institutional and
wealth management clients. In this role, Jamie collaborates across
the firm’s Institutional Securities, Investment Management and
Wealth Management divisions to drive adoption of sustainable
investing strategies seeking to achieve competitive financial
returns alongside measurable positive environmental and/or social
impact. He is a former representative on the Executive Committee of
The Green Bond Principles and B Lab’s Multinational and Public
Markets Advisory Council. Jamie started his career at Citigroup,
working in the firm’s Global Investment Research division. He
graduated from Colgate University with a B.A. and received an
M.B.A. after studying at HEC Paris and the Fletcher School of Law
and Diplomacy at Tufts University.Direct 212-296-5193
TODD O. AU,CIMA® Senior Investment Management Consultant Senior
Vice President InstitutionalConsultant
Todd Au is a Senior Investment Management Consultant, Alternative
Investments Director and Senior Vice President for Morgan Stanley's
Graystone Consulting business. Since 2000, Todd has focused on
portfolio construction, risk management, investment manager
due-diligence and investment manager selection as both anadvisor
and Outsourced Chief Investment Officer (OCIO). Todd and his team
are dedicated to providing exceptional customer care with an
emphasis on customized investment solutions for non-profit
institutional clients and associated board members. His team
regularly designs custom allocations to fixed income, equity, hedge
fund, real asset and private investment portfolios in order to
achieve their client’s unique risk and return and impact
objectives.
Todd has been a guest speaker for the Association of Small
Foundations (ASF), Research & Associates and the Association
for Investment Consultants. Todd earned a Certified Investment
Management Analyst (CIMA®) designation from the Wharton School of
Business and holds a Bachelor’s degree from the University of
California Santa Barbara and earned the rank of Eagle Scout through
the Boy Scouts of America. Todd has served on numerous boards
including the Community Foundation of Sonoma County Healdsburg
Affiliate, Healdsburg Animal Shelter and Active 20/30 Club #50.
Todd currently lives with his wife, Nichole, and daughter Keira in
Healdsburg, California. In his free time Todd enjoys restoring
cars, playing golf, hiking and yoga.
Direct (707) 571-5704 Toll Free 888-267-5868
todd.au@msgraystone.com NMLS # 1268258
Investing with Impact In Action
1 Consists of mutual funds and ETFs only. *ESG = Environmental,
social and governance.
PORTFOLIO NAME DESCRIPTION INVESTMENT MINIMUM
Custom Portfolios Tailored to match client-specific financial and
impact goals $1,000,000
Firm-Discretionary Portfolios Multi-asset class portfolios that
utilize Investing with Impact third-party separately managed
accounts, mutual funds and exchange-traded funds
$10,000 (impact portfolios) 1
$750,000 (balanced portfolio) $400,000 (equity portfolio)
Impact Solutions Baskets of individual equities that are
fundamentally well- positioned and exhibit positive ESG* corporate
practices in addition to having revenue exposure to Morgan Stanley
& Co.’s Global Sustainability Themes
$50,000
Morgan Stanley Access Investing Impact Core, Climate Action and
Gender Diversity Theme portfolios on digital investment
platform
$5,000
Morgan Stanley Global Impact Funding Trust (MS GIFT)
Multiply the impact of charitable giving through Impact pools in
Morgan Stanley’s Donor Advised Fund
$25,000
Our portfolio solutions are available and customizable to a wide
array of client segments
Presenter
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Barney LLC (“Morgan Stanley”) , its affiliates and Morgan Stanley
Financial Advisors and Private Wealth Advisors do not provide tax
or legal advice and are not “fiduciaries” (under ERISA, the
Internal Revenue Code or otherwise) with respect to the services or
activities described herein except as otherwise provided in writing
by Morgan Stanley and/or as described at
www.morganstanley.com/disclosures/dol. Individuals are encouraged
to consult their tax and legal advisors (a) before establishing a
retirement plan or account, and (b) regarding any potential tax,
ERISA and related consequences of any investments made under such
plan or account.
• This material does not provide individually tailored investment
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The strategies and/or investments discussed in this material may
not be suitable for all investors. Morgan Stanley Wealth Management
recommends that investors independently evaluate particular
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advice of a Financial Advisor. The appropriateness of a particular
investment or strategy will depend on an investor’s individual
circumstances and objectives.
• The returns on a portfolio consisting primarily of Environmental,
Social and Governance (“ESG”) aware investments may be lower or
higher than a portfolio that is more diversified or where decisions
are based solely on investment considerations. Because ESG criteria
exclude some investments, investors may not be able to take
advantage of the same opportunities or market trends as investors
that do not use such criteria.
• Morgan Stanley Smith Barney LLC does not accept appointments nor
will it act as a trustee but it will provide access to trust
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trustee.
• Asset Allocation does not assure a profit or protect against loss
in declining financial markets. • The individuals mentioned as the
Portfolio Management Team are Financial Advisors with Morgan
Stanley participating in the
Morgan Stanley Portfolio Management program. The Portfolio
Management program is an investment advisory program in which the
client’s Financial Advisor invests the client’s assets on a
discretionary basis in a range of securities. The Portfolio
Management program is described in the applicable Morgan Stanley
ADV Part 2, available at www.morganstanley.com/ADV or from your
Financial Advisor.© 2019 Morgan Stanley Smith Barney LLC, member
SIPC. Graystone Consulting is a business of Morgan Stanley Smith
Barney LLC.
Important Disclosures
A Practical Guide to Sustainable InvestingJanuary 13, 2020AOA 2020
Conference, Coronado Bay, CA
Topics for Discussion
Sustainable Investing Overview
Mainstream Investors Have a Range of Impact Motivations
Millennial Investors Driven to Sustainable Investing
Proof in the Performance
Investing with Impact Thematic Exposure
Questions for Institutions to Consider
Implementation Framework
Step 2- Mission Alignment & Building Consensus
Step 3 – Board Education
Step 5 – Implementation
New Proof of Performance
Shareholder Engagement and Advocacy
Investing with Impact Questions Incorporated into Due Diligence for
All Managers
Climate Change and Fossil Fuel Aware Investing
The Gender Advantage: Integrating Diversity into Financial
Decisions
Understanding Your Portfolio’s Impact
Introducing Morgan Stanley Impact Quotient TM: A Client-Centric
Approach to Impact Reporting
Evaluate and Enhance the Alignment of Your Investments
The Future is Bright for Investing with Impact
Appendix & Disclosures
Important Disclosures