SRI Fixed Income Investing

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1700 Sansom St. Philadelphia, PA 19103 215-525-4857 benchmarkam.com SRI Fixed Income Investing TBLI May 2009

description

Talk given by Roger Frank of Benchmark Asset Managers, at TBLI CONFERENCE™ ASIA 2009.

Transcript of SRI Fixed Income Investing

Page 1: SRI Fixed Income Investing

1700 Sansom St.

Philadelphia, PA 19103

215-525-4857

benchmarkam.com

SRI Fixed Income Investing  

TBLI May 2009

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s Benchmark Asset Managers

Benchmark 2009

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Types of Capital

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Equity Debt

Public

Private

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Objectives

Risk Returns

Liquidity

Duration Mission

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Financial

Social

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Vacation Snapshots

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Black Swan – Non Financial Type

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Symbiotics Microfinance Index v. Fixed Income

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Symbiotics Microfinance Index v. Fixed Income

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Yie

lds

Marginal Spread to 5yr B-rated Corporates

Marginal Spread to 5yr BB-rated Corporates

Marginal Spread to 5yr BBB-rated Corporates

Marginal Spread to 5yr A-rated Corporates

Spread to 5yr AA-rated Corporates

Daily Close 5yr UST

Through-the-Cycle (Non-Linear) Spreading in the Ratings Ladder

Credit Cycle Peak(excess liquidity)

Credit Cycle Trough(systemic shock)

CCCCCC+B-BB+BB-BBBB+BBB-BBBBBB+A-AA+AA-AAAA+AAA-AAA

194bps241bps*

1382bps3393bps*

17 Credit Levels (Risk Free to B)

20 Credit Levels (Risk Free to CCC)

*S&P composite; not shown on graph

14x

7x

Risk Analysis: Establishing Context

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Risk Return Spectrum

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Investment Alternatives

Public Debt

Corporate Investment Grade High Yield

Municipal

Sovereign

Money Market Equivalents Private Debt

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Mission Program Areas

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Mission Program Areas

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PRIVATE FIXED INCOME PORTFOLIO

The Benchmark Private Debt Portfolio invests in the debt securities of private companies,

with a targeted return of 6%+ in the current environment.

MicroVest was the first private microfinance firm in the U.S. It targets well-established, proven MFIs that have exhibited successful growth but lack the financing to maximize the number of loans they can offer. MicroVest is dedicated to proving the commercial viability of microfinance and harnessing the power of capital markets to alleviate poverty. A strong staff and board with extensive private sector experience in emerging markets implements this approach. (http://www.microvestfund.com) 

SunFarm Ventures, Inc. is dedicated to making solar power affordable and easy to use. The company’s SunFarm Network solution offers payment programs that minimize customers’ upfront costs and supports programs that make solar power as convenient and worry-free as buying electricity from a utility.

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COMMUNITY IMPACT PORTFOLIO

Organizations selected for innovation and leadership and for bulletproof balance sheets

Diversification in social impact and organizational scope

Target annual return of 3 – 5 %

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The Community Impact Portfolio invests in organizations and businesses that directly

contribute to community development in the U.S. and around the world. Impact areas include

Education, Microfinance, fair trade, sustainable agriculture, renewable energy, green & affordable

housing and small business development:

E+Co provides capital and technical support to renewable energy enterprises in developing countries. The impact of targeting clean energy development is many fold. The energy generated displaces the kerosene and oil currently used. It stimulates and supports other local ventures, and keeps’ customers dollars local. E+Co’s innovative approach also includes a new model for financing clean energy projects through carbon monetization. (http://www.eandco.net) 

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Contact Details

Benchmark 2009

Benchmark Asset Managers 1700 Sansom Street Philadelphia PA 19103215 525 4857www.benchmarkam.com

Roger [email protected] 409 9763917 327 7215 (mobile)