Post on 16-Apr-2017
transcript
Asset Management
Premier Fixed Income Investment Management
+
=Customized Bond Portfolios
For Impact Investors
2
SNW Overview
SNW Asset Management (“SNW”): Seattle -based firm, founded in 2002
Asset Under Management: $1.42 Billion as of June 30th, 2012
50% Taxable 50% Tax Exempt
Office locations: Seattle, Portland, San Francisco, Boise, Salt Lake City, and New York City
Employees: 15 professionals• Portfolio management team (7) - Combined PM experience of over 60 years • Management, new business development/client service (4)• Operations (4)
Parent Company: Wholly owned subsidiary of Seattle –Northwest Securities• Regional broker-dealer founded in 1970 Leader in underwriting/financial advisory
services• Employee owned• No dealing by SNW from parent’s inventory except with written consent from client
3
What is HIP Investing?
All investing – including muni bonds, corporate bonds and agency bonds – can create human impact and potential profit potential. Since enterprises can choose to create value for society as well as shareholders, those firms can be more financially stable and successful, and form the foundation of a stronger portfolio. HIP Investor quantifies the human, social, and environmental impact of each investment. HIP's scoring and ratings enable SNW to construct portfolios that seek both profit and impact for you.
With HIP impact scores, portfolio can seek more impact and profit. HIP’s in-depth analysis can score each asset class, fund or security by its quantifiable human impact and profit potential, as seen here:1. Score Your
Current Portfolio
2. Select “more HIP” Investments
3. Reallocate to increase portfolio’s HIP Score
4
What is HIP Investing?
All investing – including muni bonds, corporate bonds and agency bonds – can create human impact and potential profit potential.
5
HIP Criteria
HIP’s 5 Dimensions of Measurable Impact Can Lead to Sustainable, Profitable Growth
• Physical Health• Mental AgilityHealth• Income Growth• Asset AccumulationWealth• Carbon Neutrality• Reusable ProductsEarth• Gender Balance• Ethnic Diversity
Equality
• Transparent & Open
• Credible & EthicalTrust
HIP companies innovate to answer five human needs:
Innovative Products + Services
Inspired People + Teamwork
Increased Profits + Returns
Improved Planet + Society
Which can result in sustainable, profitable growth for all stakeholders:
6
HIP Process
The HIP Methodology ProcessScores, Rates and Ranks Investments
• Analytics based on 30 quantifiable metrics• Recognizes new opportunities and risks • HIP fundamentals drive weighting of portfolio
Quant-ifiable Impact
HIP Dimensio
ns
1Products
& Services
2 Operating
Metrics
3Mgmt
Decisions
4Score
5Index
Weighting
HIP
SCORE
Quant-ifiable Impact
5Index
Weighting
HIP
SCORE
7
Customized Bond Portfolios for Impact Investors
SNW applies our investment philosophy, research, portfolio construction process and risk management to manage five overall strategies: Blend, Tax-Exempt, Taxable, Credit, Cash Management
SNW builds impact portfolios by applying a HIP scoring overlay (on a per security basis) which allows us to quantify the overall Human Impact. The end result is a portfolio that meets our clients’ unique investment needs and objectives and that is optimized to provide the greatest Human Impact + Profit. FINANCIALS IMPACT CUSTOMIZED
Education: Universities HIP Comparison (sample)
Occidental University
University of California
University Type: Liberal Arts College National University
Human Impact (100% maximum) 100% 79%Health Impact (60%
weight) 60% 46%
• Student-Teacher Ratio (20% weight)
20% (9:1 ratio)
11% (17:1 ratio)
• Freshman Retention Rate
(20% weight)
20% (93% retention)
20% (93% retention)
• 4-year Graduation Rate (20% weight)
20% (80% graduation)
15% (60% graduation)
Wealth/Equality (40% wgt.) 40% 33%
• Average Percent of Need Met
through Financial Aid (40% wgt.)
40% (100% needs met)
33% (83% needs met)
Education: Public UniversitiesHIP Comparison (sample)
University of California
University of Texas
University Type: National University National University
Human Impact (100% maximum) 79% 58%Health Impact (60%
weight) 46% 32%
• Student-Teacher Ratio (20% weight)
11% (17:1 ratio)
10% (18:1 ratio)
• Freshman Retention Rate
(20% weight)
20% (93% retention)
16% (74% retention)
• 4-year Graduation Rate (20% weight)
15% (60% graduation)
6% (25% graduation)
Wealth/Equality (40% wgt.) 33% 26%
• Average Percent of Need Met
through Financial Aid (40% wgt.)
33% (83% needs met)
26% (65% needs met)
10
Corporate Bond Comparison – Pharma Industry
World’s leading generic drug makerStrong top and bottom line growth trajectory due to smart acquisition historyHIP rating Below Average because :- TEVA’s lack of information and transparency in many areas that drive higher impact, including its supply-chain sustainability, energy usage and wealth-building for employees+ However, TEVA does have strong performance in worker safety, worker retention, and customer satisfaction
11
Corporate Bond Comparison – Pharma Industry
World’s leading generic drug makerStrong top and bottom line growth trajectory due to smart acquisition historyHIP rating Below Average because :- TEVA’s lack of information and transparency in many areas that drive higher impact, including its supply-chain sustainability, energy usage and wealth-building for employees+ However, TEVA does have strong performance in worker safety, worker retention, and customer satisfaction
Global leader in healthcare products and servicesStrong cash flow and balance sheet HIP rating in Top Quartile because: + JNJ’s Board and executive team enables transparency and publishes commitments to achieving impact as well as financials+ JNJ’s international quality control, employee health and safety, and environmental performance are strong- However, JNJ’s product recalls in several business units drags down the potential impact, and creates financial volatility in lower revenue, higher cost and shifted market value
12
Contact Us to Learn More