Impact Investing Solutions Personal Conviction Overlay Screens

Transcription

1 Impact Investing Solutions Personal Conviction Overlay Screens FOR ONE-ON-ONE USE WITH A CLIENT S FINANCIAL ADVISOR ONLY

2 The overlay screening program allows clients to apply customized screens to their investment portfolios. There are 17 different screens available, many of which have both a and Strict screen. Clients are able to select up to 11 screens to apply. Overlay Screening Criteria screens are designed for investors wishing to integrate environmental, social and governance (ESG) approach into their investments with limited deviation from their overall investment objective. The screens are designed to exclude major manufacturers of specific products that do not meet the personal convictions criteria chosen by the client, such as weapons, alcohol, nuclear power, adult entertainment and tobacco. The Best in Class screens allow investors to avoid companies whose performance is lower than their industry peers in regard to environmental, social and governance practices. Strict Overlay Screening Criteria Strict screens are designed for investors wishing to integrate more stringent environmental, social and governance (ESG) criteria into their investments. The Strict screens are designed to minimize exposure to companies with specific products, services and practices that do not meet the personal convictions criteria set by the client and who derive more than minimal levels of revenue from major manufacturers and retailers of specific products such as weapons, alcohol, nuclear power, adult entertainment and tobacco. Strict screens allow investors to avoid companies with specific practices that endanger the health and well being of the environment, humans and/or animals Limit Alcohol Excludes companies with an industry tie to alcohol, Derive 50% of Revenue from the Production of Alcohol Excludes companies with an industry tie to alcohol, Derive 5% of Revenue from the Production of Alcohol Derive 15% of Revenue from the Distribution of Alcohol Derive 15% of Revenue from the Retail of Alcohol Derive 5% of Revenue from the Licensing of Their Brand to Alcohol Companies Supply Key Raw Materials and Other Products Used Specifically for the Production of Alcohol Products Limit Cruelty to Animals Excludes companies with an industry tie to animal welfare, Are on the People for Ethical Treatment of Animals list of facilities that manufacture animal-tested products as well as brands that are owned by companies that have not adopted a permanent no animal testing policy There is no for Limit Cruelty to Animals 2 Impact Investing Solutions: Personal Conviction Overlay Screens

3 Limit Firearms There is no Screen for Limit Firearms Exclude companies that have an industry tie to the manufacture or retail firearms and small arms ammunitions, Derive 15% of Revenue from the Production of Firearms or Small Arms Ammunition Intended for Civilian Use Derive 15% of Revenue from the Distribution of Firearms or Small Arms Ammunition Intended for Civilian Use Limit Gambling Exclude companies that have an industry tie to gambling, Derive 15% of Revenue from the Ownership or Operations of Gambling Facilities Derive 15% of Revenue from the Provision of Key Products Or Services Fundamental To Gambling Operations Exclude companies that have an industry tie to gambling, Derive 5% of Revenue from the Ownership or Operations of Gambling Facilities Derive 15% of Revenue from the Provision of Key Products Or Services Fundamental To Gambling Operations Limit Adult Entertainment There is no screen for Adult Entertainment Exclude companies that have an industry tie to adult entertainment, Derive 15% of Revenue from the Sale of Adult Materials Derive 15% of Revenue from the Ownership of an Adult Entertainment Company Limit Military Weapons Exclude companies that have an industry tie to Military Weapons, Derive 50% of Revenue from the Manufacture of Conventional Weapons Derive 50% of Revenue from the Manufacture of Biological/Chemical Weapons Derive 50% of Revenue from the Manufacture of Nuclear Weapons Derive 50% of Revenue from the Manufacture Components of Weapons Systems Derive 50% of Revenue from Weapons Support Services Exclude companies that have an industry tie to Military Weapons, Derive 5% of Revenue from the Manufacture of Conventional Weapons Derive 5% of Revenue from the Manufacture of Biological/Chemical Weapons Derive 5% of Revenue from the Manufacture of Nuclear Weapons Derive 5% of Revenue from the Manufacture Components of Weapons Systems Derive 10% of Revenue from Weapons Support Services Limit Nuclear Power Exclude companies that have an industry tie to the nuclear power industry, Derive 50% of Revenue from the Ownership or Operation of Nuclear Power Plants Exclude companies that have an industry tie to the nuclear power industry, Supply Key Nuclear-Specific Products or Services to the Nuclear Power Industry. Own or Operate Nuclear Power Plants Impact Investing Solutions: Personal Conviction Overlay Screens 3

4 Limit Exclude companies that have an industry tie to tobacco products, Derive 50% of Revenues from the Production of Derive 50% of Revenues from the Distribution of Derive 50% of Revenues from the Retail of Exclude companies that have an industry tie to tobacco products, Derive 5% of Revenues from the Production of Derive 15% of Revenues from the Distribution of Derive 15% of Revenues from the Supply of Products Essential to Derive 15% of Revenues from the Retail of Protect Customer Rights The Customer Rights screen excludes companies that have received low scores, relative to peers, due to a poor track record of marketing and advertising practices, product/service quality and safety, involvement in anti-competitive pricing/bidding practices, and of instances of discrimination or fraud in its dealings with customers. There is no Strict screen for Customer Rights Protect Employee Rights The Employee Rights screen excludes companies that have received low scores, relative to peers, due to serious management challenges or egregious violations related to diversity, supply chain, safety, or labor relations. There is no Strict screen for Employee Rights Protect Environment The Environment screen excludes companies that have received low scores, relative to peers, due to a poor track record, relative to peers, of resource and energy use, emissions of greenhouse gases and other discharges into air, water or land, the impact of operations, products and services on environmental and human health, compliance with applicable regulations, and any controversies, lawsuits or fines related to environmental practices. The Environment Strict screen excludes companies that have received low scores due to a poor track record of resource and energy use, emissions of greenhouse gases and other discharges into air, water or land, the impact of operations, products and services on environmental and human health, compliance with applicable regulations, and any controversies, lawsuits or fines related to its environmental practices. Protect Human Rights The Human Rights screen excludes companies that have received low scores, relative to peers, due egregious human rights violations, including random violence, unlawful searches and detentions, human trafficking, violations of free speech and other rights, and substantive involvement with regimes with poor human rights records, such as Sudan and Burma. There is no Strict screen for Human Rights Limit Landmines There is no screen for Landmines The Landmines Strict screen excludes companies that are actively involved in the development or production of landmines or major landmine components. 4 Impact Investing Solutions: Personal Conviction Overlay Screens

5 Limit Abortion There is no screen for Abortion The Abortion Strict screen excludes companies that engage in the development or manufacture products that may be used as abortifacients and that own or operate acute care hospitals or surgical centers that may provide general medical services, including abortions. Limit Contraceptives There is no screen for Contraceptives The Contraceptives Strict screen excludes companies that manufacture or develop contraceptive products and that license their company or brand name to contraceptive products. Limit Pork/Usury There is no screen for Pork and Usury The Pork and Usury Strict screen excludes companies that: Derive 10% of Revenues from the Production of Pork Products including pig breeding and slaughtering Derive 10% of Revenues from the Processing of Pork Products Derive 15% of Revenues from the Retail of Pork Products Operate in the Finance sector, including the following industry groups: Banks, Finance/Rental/Leasing, Investment Banks/Brokers, Investment Managers, and Financial Conglomerates Limit Embryonic Stem Cell/Fetal Tissue Research There is no screen for Embryonic Stem Cell/ Fetal Tissue Research The Embryonic Stem Cell/Fetal Tissue Research Strict screen excludes companies that conduct embryonic stem cell/fetal tissue research. Impact Investing Solutions: Personal Conviction Overlay Screens 5

6 We make a best efforts attempt to apply screens to portfolios. Data is not always available regarding all of a company s services and practices. This is a risk of holding a company in your portfolio that does not pass your ESG screens. This guide is provided for informational and educational purposes only. It is not intended as and should not be used to provide investment advice and does not address or account for individual investor circumstances. Investment decisions should always be made based on the client s specific financial needs and objectives, goals, time horizon and risk tolerance. The statements contained herein are based upon the opinions of Envestnet and third party sources. Information obtained from third party sources are believed to be reliable but not guaranteed. Past performance is not a guarantee of future results. FOR ONE-ON-ONE USE WITH A CLIENT S FINANCIAL ADVISOR ONLY 2014 Envestnet. All rights reserved. PMC-IMPIC-0614