| B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
1 | Organizational Name | Which of the following services do you provide? | Assets Under Management ($ USD) | Assets Under Advisement ($ USD) | Percentage of Assets from Endowments and Foundations | Percentage of Assets from Higher Education Endowments | Average Size (AUM) of Endowment and Foundation Investors | # of Endowment and Foundation Investors with Responsible Investing mandates | Average Size of Endowment and Foundation Investors with Responsible Investing mandates | How do you invest client assets? (SMAs, a pooled fund, customizable asset allocation with manager level pooled funds, etc.) | Percentage of Consultants that identify as racial/ethnic minority and/or women | Percentage of Research Team Members that identify as racial/ethnic minority and/or women | Percentage of Client Service Analysts that identify as racial/ethnic minority and/or women | Percentage of Consultants who specialize in Responsible Investing | Percentage of Research Team Members who specialize in Responsible Investing | Responsible Investing Policy/Approach (provide link to policy/approach if possible) | Due diligence process for evaluation of managers' ESG or impact approach | Responsible Investing Specialty Areas (divestment, impact investing, ESG integration, diverse managers, etc.) | Proxy voting and shareholder engagement practices/strategies | Percentage of recommended managers who are majority owned by women or people of color | Percentage of recommended managers who integrate ESG into their investment strategy | Percentage of recommended managers who invest for targeted impact | Are you a UN PRI Signatory? If so, when did you join? | List any other responsible investing groups who you engage for data and/or thought leadership |
2 | Revalue Investing | |||||||||||||||||||||||
3 | Disciplina | |||||||||||||||||||||||
4 | Crewcial Partners | |||||||||||||||||||||||
5 | Agility | |||||||||||||||||||||||
6 | Syntrinsic | |||||||||||||||||||||||
7 | Values Advisor | |||||||||||||||||||||||
8 | Acansa Investment Management Group | Both fully outsourced management & and discretionary/nondiscretionary consulting | $0 | $720M | 100% | 0 | $700M | 1 | $700M | SMAs, including some customized to the specific ESG priorities and objectives of the client; customizable asset allocation with manager-level pooled funds | 50% | 66% | 50% | 100% | 100% | acansa-inv.com (ESG page) | Deep analysis of all holdings in every fund, using best-in-class data sources on company-level ESG performance through a proprietary analytical process and ESG data management system. | ESG Integration, Impact Investing | Depends upon client | We do not maintain a recommended manager list. We fully customize the strategies, managers, and holdings of each client portfolio, based upon their unique objectives and legacy positions. Manager diversity is, of course, an important factor in this process. | We do not maintain a recommended manager list. We fully customize the strategies, managers, and holdings of each client portfolio, based upon their unique objectives and legacy positions. We measure each factor of Environmental, Social, and Governance at the holding level of every fund we consider for our clients, rather than solely depending upon fund managers to effectively implement and monitor these important criteria. | We do not maintain a recommended manager list. We fully customize the strategies, managers, and holdings of each client portfolio, based upon their unique objectives and legacy positions. We measure each factor of Environmental, Social, and Governance at the holding level of every fund we consider for our clients, rather than solely depending upon fund managers to effectively implement and monitor these important criteria. | No | Association of Governing Boards, The Robert Toigo Foundation |
9 | Aon | Fully outsourced management, Discretionary or Nondiscretionary Consulting, Both fully outsourced management & and discretionary/nondiscretionary consulting | $154 billion as of June 2023 | $2.8 Trillion as of March 2023 | all of the above | yes, 2006 | ||||||||||||||||||
10 | Veris Wealth Partners | Fully outsourced management, Discretionary or Nondiscretionary Consulting, Both fully outsourced management & and discretionary/nondiscretionary consulting | ~$2.2 billion (as of year end 2024) | ~$400 million | 21% | None | $15.1 million | 33 (100%) | $15.1 million | Fully diversified portfolios, customized to clients’ needs | 78% | 100% | 100% | 100% | 100% | This information is covered in Part 2A of the firm's form ADV Firm Brochure https://files.adviserinfo.sec.gov/IAPD/Content/Common/crd_iapd_Brochure.aspx?BRCHR_VRSN_ID=905522 | Veris’ analysis of a fund manager’s implementation of their mission-aligned investing thesis and impact measurement and management approach is a process that includes both qualitative and quantitative review and is performed at least annually. We evaluate fund managers’ outcomes as they aim to address any societal or environmental challenges or integrate material ESG factors in their investment process through our ongoing due diligence questionnaire, impact questionnaire and review of the managers’ impact reporting. Due to the significant growth in managers claiming to integrate ESG and do impact investing, we speak to their investment teams in depth to ensure their understanding of ESG and impact and how they make investment decisions through analysis of multiple portfolio holdings and scenarios. We also assess the various ESG frameworks and data sets they use in their investment process. We review their impact reporting methodology, metrics, and tools. We ask each of our approved managers to fill out impact metrics questionnaires that Veris has identified that are representative of the approved managers and funds on our platform on an annual basis. We also ask our managers for in-depth analysis of portfolio holdings using the Impact Management Project’s five dimensions of impact (what, who, how much, contribution and risk) to understand both the positive and negative intended and unintended impact as well as to understand the depth and breadth of the impact of portfolio holdings. | Since 2007, Veris has been one of the only US-based investment management firms that specializes in creating customized impact- and ESG-focused portfolios that create positive impact across asset classes. Veris has a fiduciary duty like other RIAs, and we aim to serve our clients’ best interests as we build diversified portfolios tailored to our clients’ unique financial and impact goals. In the portfolio construction process, our advisors consider clients’ liquidity needs and financial goals as well as their goals for social and environmental progress. We believe this requires our advisors to understand underlying issues beyond what is typically expected of an investment advisor. We also believe the interconnected challenges that can be addressed through ESG investing require an intersectional approach to achieve a sustainable, long-term positive impact and our Investments team and Advisors have expertise across impact themes. Veris developed our own theory of change and thematic expertise to serve our clients. Our due diligence and manager selection processes are rigorous. We evaluate ESG integration and consider financial factors for risk management purposes with inputs from the firm’s Investments team and Investment Committee as we aim to hire best-in-class managers. Veris views ESG integration as a risk management tool that our managers employ along with identification of long-term investment opportunities. We offer an extremely deep bench of Private Placements: We have one of the largest Community Development Finance Institutions platforms in the US and are trailblazers in being the first backers of game-changing PE and Venture funds focused on new investment themes, such as decarceration. We apply our own Equity, Diversity, and Inclusion (EDI) framework to initial and ongoing due diligence with all managers and we believe we are the only RIA in the US with this depth of EDI Analysis. | We offer Shareholder Activism beyond Traditional Manager-led Proxy voting: We offer personalized client-led Proxy Voting and Shareholder Engagement. Our client can file or co-file resolutions in partnership with organizations such as As You Sow, and our firm helps facilitate this process. Our firm has a distinct focus on proxy voting, policy advocacy and shareholder engagement. We believe that Veris is one of the most active Financial Advisors in the sustainable investing space in these areas. We also believe that shareholders have a powerful opportunity to advocate for change in the publicly listed companies they are invested in and to hold companies accountable for their actions. One of the tenets of our firm’s Investment Philosophy is that shareholder advocacy in public markets, along with ESG Integrated & thematic impact investing, can help drive changes that lead to positive environmental, social, and governance outcomes. Our firm’s approach to shareholder advocacy includes: a) Funds/managers – We seek to identify funds and managers who actively engage with portfolio companies on ESG topics, file shareholder resolutions and vote proxy in alignment with ESG guidelines. b) Clients – We provide Veris clients with opportunities to be involved in shareholder resolutions as sponsors and endorsers through shareholder advocacy groups. c) Public Policy – We are advocates for public policy changes we believe will be beneficial. Veris generally delegates proxy voting responsibility to a third-party advisory firm. With respect to assets maintained with third-party managers, the coordination of proxy voting for our client’s securities is done primarily through the separate account managers in accordance with ESG guidelines and values. Veris’ Engagement and Policy Team coordinates shareholder advocacy, proxy voting, and public policy initiatives for our clients and with industry partners. We collaborate with As You Sow, ICCR, Rhia Ventures, and other organizations to offer our clients the opportunity to sponsor or endorse shareholder resolutions for securities held in separate managed accounts. As a member of US SIF, Veris and its clients can participate in public policy initiatives that include writing SEC comment letters on proposed legislation negatively affecting Environmental, Social and Governance (ESG) and Diversity, Equity and Inclusion (DEI) efforts. Through this partnership we are also able to join our clients on Capitol Hill to educate members of congress about issues related to sustainable and impact investing. | As of 12/31/2023, 35% of recommended managers are majority owned by women, and 32% of recommended managers are majority owned by people of color | 100% | No | As You Sow Confluence Philanthropy Gratitude Railroad Interfaith Center on Corporate Responsibility (ICCR) ImpactAssets Mission Investors Exchange (MIE) National Center for Family Philanthropy (NCFP) The Network of Engaged International Donors (NEID) NEXUS Global Nomi Network PROXY Impact The US Sustainable Investment Forum (US SIF) | |
11 | Cornerstone Capital Group https://cornerstonecapinc.com/+3:15T33:213:22T33:213:24T33:213:27T33:213:31T33:213:35T33:213:38T33:213:39T33:213:38 | Fully outsourced management and discretionary consulting | US $1.2 Billion | US $$0.98 B | 12% | 0 | $12 million | 10 | $12 million | SMAs, customizable asset allocation with third party manager level pooled funds, direct investments, etc. | 71% | 80% | 100% | 100% | 100% | Our approach is based on our clients' financial needs and impact priorities. Our organization is 100% focused on responsible investing and our manager research team has a robust, proprietary process for identifying appropriate investments | Robust, independent due diligence is central to our service offering. Cornerstone is known for its unbiased, broad-reaching manager identification and due diligence.The due diligence team works to provide investment solutions for our clients that offer the most competitive profile across a variety of metrics. Among the distinguishing factors of our approach to due diligence are the following: - Unconflicted, open architecture philosophy - Sourcing of managers across asset classes, regions, and themes - Identification of strong governance and a focus on sustainability and impact which we believe are drivers of value - Data-driven including the incorporation of industry leading third party data (e.g., ESG scores) as one input among many For Cornerstone, our due diligence process values certain characteristics of managers and strategies above others. Defining characteristics of a successful strategy (regardless of short-term performance) include: - Quality Management at firm and strategy levels - Credentials of key personnel - Transparency - Robust responses to questions and answers - Clearly articulated investment strategy - Alignment; positioned for long-term success with clients, employees and other stakeholders - Articulation of risk/return ramifications - Governance & sustainability - Investment process that accounts for emerging and material issues on a thematic/sector basis -Well-developed approach and/or rationale for level of owner engagement - Consistency: steady team and process - Competitive results with minimal surprises | All of the above | Cornerstone can support an active ownership strategy in the following ways: - Many of the managers on our platform have robust shareholder engagement strategies that include filing shareholder resolutions, engaging companies in dialogue, and proactively voting proxies on behalf of shareholders who have assets with the manager. - We engage with our managers by asking about their own ESG incorporation, encouraging greater disclosure of sustainability policy and practice, and including questions about internal governance practices, particularly around diversity. We believe that these questions encourage greater focus on sustainability among asset managers. We report on various engagement strategies of fund managers in clients’ portfolios in our annual Access Impact Report. - We can help clients develop their own proxy voting and engagement policies. - We maintain relationships with nonprofit organizations that organize shareholders based on common ESG-related interests and manage campaigns on behalf of shareholders. We can help you become involved with these campaigns. Involvement can take the form of very active engagement with other investors interested in influencing company practices, or simply instructing intermediary organizations to vote on your behalf on certain issues. For example, As You Sow, an intermediary organization, recently organized investors interested in minimizing antibiotics in the food supply; the investors successfully negotiated with Costco to develop an antibiotic phase-out campaign for their suppliers. Should you wish to be involved in these types of shareholder campaigns, we can facilitate this process on your behalf with our partners. | Evaluating manager diversity is a core element of Cornerstone’s due diligence process. Of the firms with whom we have client assets: 29% are at least 50% owned by women or people of color; 45% have executive leadership teams and investment departments with 25-50% women; 50% employ 25-50% people of color on their investment teams | 100%, although not all managers on Cornerstone's platform are self-described as integrating ESG considerations. We look at what managers actually do, not what they say they do. | 1 | Yes, 2014 (firm inception 2013) | We use Sustainalytics and Bloomberg for data inputs into our work. We are also active members in a number of relevant industry organizations and advocacy groups with whom we collaborate on thought leadership; too numerous to list here but available upon request. |
12 | FEG Investment Advisors www.feg.com | Fully outsourced management and discretionary consulting | $8 billion | $62 billion | 55% | 33% | $61 million | 19 | $135 million | We work with clients to create a customized portfolio / asset allocation designed to help enhance investment returns. FEG features an “open-architecture” platform. We recommend an array of external investment managers that can be implemented via a variety of investment vehicles, including mutual funds, ETFs, SMAs, commingled funds, direct investments, and limited partnerships (fund-of-funds). | 16% | 32% | 55% | 27% | 13% | We proactively provide guidance and leadership on integrating ESG criteria into our client's decision making process through education, manager research, impact measurement, identification of specialist managers, exclusionary items and determining a successful strategy. | Proprietary ESG questionnaire, speak with ESG specialist/analyst, utilize 3rd party ratings and data providers such as MSCI ESG Fund Metrics | Client-dependent, including divestment, impact, ESG integration, diverse managers, sin stock avoidance. | We work with ESG specialist managers and our clients to determine an optimal proxy voting program that votes shares in alignment with the client values and mission. | 7% | 12% | 3% | No | Confluence Philanthropy, USSIF, Mission Investors Exchange, SRI Conference. |
13 | Glenmede | $40B | 24% | We either do not collect this data or do not disclose it. | We either do not collect this data or do not disclose it. | We either do not collect this data or do not disclose it. | We either do not collect this data or do not disclose it. | We either do not collect this data or do not disclose it. | Dedicated Sustainable & Impact team members: 6 # of Research Team Members: 1 # of Client Service specialists: 5 | https://www.glenmede.com/files/pri_signatory.pdf | 1) Create manager search shortlist pulling on Morningstar, eVestment, US SIF, and recommended managers from sustainable & impact networks 2) Crosscheck managers' risk-return profiles and track record against varying risk-return requirements per investment approach 3) Share with manager a Due Diligence RFI which includes questions exploring investment thesis; impact outcome; proprietary data and shareholder engagement techniques employed; documentation and reporting; firm, philsophy, and culture (including gender and racial diversity of investment professionals); and industry leadership. 4) Following receipt of RFI, Glenmede's Sustainable & Impact team will further conduct meetings via phone or onsite for follow-up questions and to ensure a complete narrative. 5) These inputs feed into a Sustainable & Impact Matrix, which requires a weighted score along five key criteria. Assuming the manager passes a threshold score, this final score is then tiered (Average vs. Strong vs. Exemplary). 6) To ensure continued monitoring and systemization, the Sustainable & Impact team reviews strategy scores on at least an annual basis or more often, depending on manager updates. | • Sustainable investing: Using environmental, social, and Governance information to make better investment decisions • Impact Investing: Investing in order to create an environmental or social impact • ESG Integration: Explicit consideration of material ESG factors in the traditional investment decision making process • ESG Mandated: Using ESG screens to avoid companies with poor ESG criteria and/or tilt toward companies with strong ESG characteristics • Thematic Investing: dual goal of achieviging measurable environmental or social impact and market-rate returns across diverse areas of focus, including (but not limited to) Climate Change, Education, Health, Financial Inclusion, Gender Equity, Racial Equity, and Place-Based Investing • Conessionary High Impact: primary goal to achieve measurable environmental or social impact, while willing to sacrifice returns to do so | Through our platform, we offer access to managers with best-in-class shareholder engagment practices spanning proxy voting, shareholder resolutions, and direct dialogue: • ESG-aligned proxy voting policies (e.g., aligning to ISS's Sustainability Proxy Voting Guidelines) • Multi-year shareholder resolution campaigns that seekto change corporate behavior around topics like climate change reporting, 2 degree scenario analysis, disclosure of gender and racial diversity policies, disclosure of gender and racial pay equtiy, and disclosure of human rights policy responses • Outcomes-based direct dialogue with clear metrics on what 'success' looks like and clear reporting | 11% of all Mutual Funds and SMAs are women or minority owned. | • ESG Integrated Managers:20 • ESG Mandated:17 • Thematic: 5 • Concessionary High Impact: 1 | 6 (including Thematic and Concessionary High Impact managers) | Yes, 2019 | • Affiliations: member of SASB Alliance, PRI, the GIIN, PRI, Mission Investors Exchange, ImpactPHL, As You Sow, Ceres • Data: our platform of 3rd party managers rely on a range of data providers including MSCI, Sustainalytics, Bloomberg, SASB, and a range of specialized data providers • Thought Leadership: most recently, Glenmede has partnered with the following organizations to co-author thought leadership- SASB, the GIIN, the Chartered Alternative Investmest Association (CAIA), the Diverse Asset Managers Initiative (DAMI) | ||||||
14 | Global Endowment Management https://www.globalendowment.com/ | Fully outsourced management | As of June 30, 2020, GEM’s total firm assets was approximately $10.0 billion for 40 client relationships. | 77% | 19.90% | $163.4mm | 4 | $323.3mm | GEM generally deploys client assets through pooled asset class vehicles. GEM’s structure is, at its most basic, a master/feeder structure, with every client accessing GEM’s manager roster through the most efficient vehicle that aligns with the client’s policy objectives, including the Endowment Fund or a custom fund-of-one. | 58% | 35% | 57% | 8% | 22% | GEM incorporates ESG factors into our investment process, as described in GEM’s 2020 Sustainability Report. Furthermore, we measure the stakeholder-impact of investments in our portfolio according to the Impact Management Project Framework, as described in GEM’s Primer on Impact Measurement for Complex Portfolios. | GEM applies the Impact Management Project (IMP) framework to all of our investments. The IMP is an impact assesment framework developed with contributions from more than 2,000 enterprises, investors and practitioners to build global consensus on measuring and managing ESG risks and positive impacts. The IMP framework | GEM is not a UNPRI signatory; however, we utilize responsible investment principles similar to those of the UNPRI, and we support GEM clients who are UNPRI signatories to report on their investments. | |||||||
15 | NEPC, LLC (www.nepc.com) | Fully outsourced management and discretionary consulting | $35.9 billion | 1087.9 | 8% | 0.97% | $601 million | 31 clients | Average of $400 million in total assets for clients with responsible investing mandates in their Endowment and Foundation portfolio(s). | In order to avoid any conflict of interest, NEPC does not offer any proprietary investment strategies. Further, there is no prescribed one-size-fits-all approach to asset allocation or manager selection. Instead, each of our clients has a customized investment program determined by client-specific needs. Most of our clients invest through commingled vehicles (many of which have negotiated fees axclusive to NEPC clients due to our size and scale), separately managed accounts, and mutual funds. Depending upon the considerations of the client (size, liquidity, fees, etc.), we will determine the most appropriate vehicle for each client investment. | 31% | 37% | 49% | 15% | 14% | NEPC is recognized as a thought leader in Impact Investing. Over 70 of our clients have impact investment programs that contain a mix of impact/thematic, ESG and SRI investments. This represents close to 18% of our client base and is a number that is growing rapidly. The approaches vary considerably, and our approach to impact investing mirrors our total portfolio approach: we start with a thorough understanding of each organization’s specific impact goals and where they are in your impact journey. We follow our Impact Blueprint to create a plan with our clients, which may include building consensus around areas of focus, governance discussions, investment policy statement modifications, investment manager sourcing, and reporting on financial and impact outcomes. | At NEPC, we believe the consideration of ESG factors can lead to a more holistic analysis of securities and should serve to improve the return/risk profile of the fund while reducing headline risk. All of NEPC’s investment memos and manager search books include information around a manager’s integration of ESG. Additionally, NEPC has developed an ESG rating system whereby we can assess the ESG integration of both a firm and a product for clients. Our proprietary ESG rating system was designed to provide a way to differentiate between investment managers’ approaches to incorporate ESG factors into their investment processes and considers quantitative and qualitative information, at both the firm and strategy level. This information is sourced directly from the investment manager. NEPC meets regularly with impact-oriented investment managers across asset classes as we continue to source preferred strategies and options for our clients. Perhaps more importantly, we have sourced a number of preferred strategies for clients that target attractive risk adjusted returns and also align with the respective missions and values of our client base. While our Impact Investing Committee may source and identify strategies, its vetting and approval process follows the regular NEPC research process. In addition to the managers that integrate ESG, we have a dedicated Thematic Equity Focused Placement List (FPL), and underwrite 3-5 private market impact-oriented opportunities each year. We are continuously canvassing the market for compelling thematic ideas, across public and private markets. As part of our commitment to impact investing we have developed an internal Impact Investing Committee that is responsible for overseeing trends, researching managers and working with clients to develop strategies that meet their needs and align with their respective organizations’ mission. This group includes a mix of client consultants and research professionals across asset classes. | Our clients have impact investment programs that contain a mix of impact/thematic, ESG and SRI investments. NEPC defines a diverse manager as an investment management firm that is majority owned (greater than 50% firm ownership) by minorities and/or other underrepresented groups such as females, disabled persons, and veterans. Since 1995, NEPC has been committed to discovering diverse managers with compelling strategies and placing them in client portfolios. NEPC’s commitment to thought leadership and uncovering diverse investment firms is underscored by the fact that we have over $24.3 billion of client assets invested with 158 diverse firms. In fact, 40% of our clients are currently utilizing diverse managers across public and private equities, hedge funds, private debt and private real estate. | We have been a leader in evaluating corporate governance with our clients for many years. We have educated our clients throughout the changing investor landscape on their responsibilities and roles as shareholders. One of the most important tools a shareholder has is to influence company practices is through proxy voting. As a result, we have taken an active role for our clients to help choose the right proxy method for them - delegate voting responsibility to investment managers, vote proxies internally or find a third-party provider to vote proxies for the program. If the proxies are voted by an investment manager or third-party source, we will review and comment on the proxy voting guidelines to ensure that all votes are being placed for the sole benefit of our client. Additionally, we have helped our clients find investor networks to engage with, which opens opportunities for investor collaboration on key issues with companies. | NEPC has 48 diverse investment products on our various Focused Placement Lists (“FPLs”) across all asset classes. Representation on FPLs ensures that firms vetted by our research staff gain broad exposure across our entire client base. We can think of no better advocacy for diverse firms. | 47% | 10% NEPC has underwritten 22 thematic private market strategies. | Yes, NEPC became a signatory to the Principles for Responsible Investment (PRI) Initiative in June 2014. | NEPC is a member of the Intentional Endowment Network (IEN) a leading peer network focused on socially responsible investing. NEPC is also an active member of the Catholic Impact Investing Collaborative (CIIC). CIIC works to spread the word of Impact Investing through community building, sharing experiences, and learning from each other. |
16 | Prime Buchholz LLC www.primebuchholz.com | Fully outsourced management and discretionary consulting | $2,195M | $51,205M | 74% | 30% | $190.1M | 31 | $301M | Across our portfolios, we employ multiple vehicles for our recommended managers—e.g., mutual funds, commingled funds, separate accounts, limited partnerships, etc. Typically, we prefer investing in fund vehicles to limit security-level transaction costs and benefit from the scale that comes with investing alongside other institutional clients. Separate accounts are utilized when customization is required. Examples of this include preference for conservative guidelines in fixed income in an effort to ensure high credit quality and/or a specific duration. Also, separate accounts are often utilized for mission-focused clients who would like to exclude certain investments. Cost and account minimums are the most important variables in deciding between mutual funds or separate accounts. When the management fees of mutual funds and separate accounts are similar, we generally use a mutual fund. In many cases, the total fee is similar but portfolio rebalancing can often be simpler with pooled vehicles. When money is being trimmed from or added to a manager, the transaction involves one line item versus numerous items. Additionally, it can be difficult to attain an accurate gauge of transaction costs for separate accounts at the outset, as it’s difficult to estimate trading activity ahead of time. Given this fact, all-in total costs for separate accounts are not always fully appreciated. We consider a variety of factors that guide our decision to use commingled vehicles versus separate accounts. Each decision is guided by what best meets the client’s needs in addition to the following considerations: • Fees – Often, the institutional share class of a mutual fund has a lower fee than the separate account. • Account minimums – Institutional separate accounts can have minimums that make them inaccessible, even to some institutions. • Speed and efficiency of implementation – Because they become part of the pool, investments in mutual funds are fully invested on the day shares in the fund are purchased. Separate account managers often require time to “put the money to work,” increasing the potential for cash drag caused by contributions. • Ability to handle client-specific cash flows – Certain clients have frequent cash flows, typically at smaller sizes relative to their total fund. In a separate account format, investment managers must either make many small trades to spread the cash flows across the portfolio, or handle cash from contributions and withdrawals in a non-pro-rata fashion, increasing the risk of tracking error in the portfolio. | 11% | 26% | 16% | 22% participate on the Firm's Mission-Aligned Investing Committee | Approximately 52% of our research team are involved in the firm’s dedicated responsible investing activities. | Our approach to mission-aligned investment is rooted in our culture and has evolved based on our clients’ missions and needs. We have been working with clients for decades around responsible/sustainable/ environmental, social, and governance (ESG) investment considerations and implementation. We believe a client’s mission is intrinsic to its investment policies and guidelines. How mission alignment manifests in a client’s investment policies and asset allocations can vary greatly and has evolved in recent years at an accelerating pace. We partner with clients to develop their portfolios alongside the changing dynamics of their organizations, investment committees, and the investment opportunity set. In doing so, we: • Help clients articulate their mission and values into investable opportunities. • Build portfolios that abide by strict interpretations of mission and values as well as portfolios that do not conflict with their mission and values, but reflect the spirit of the organization and its stakeholders. • Leverage more than 80 recommended mission-aligned strategies with options available across all asset classes to consider when developing a portfolio with ESG/SRI requirements. | We actively engage all recommended managers on their ESG and DEI policies and practices on an ongoing basis. This detail informs our assessment of investment managers and their proprietary ESG score. Our process of evaluating an investment manager's ESG or impact approach is integrated into our overall in-depth due diligence process conducted by our research team. Research analysts assess the firm, investment philosophy and process, investment risk management, performance and positioning, investment team, and seek to identify risks inherent in the strategy. Our assessment of managers across these dimensions is both quantitative and qualitative in nature. Analysts review product materials as well as engage discussions with managers in an effort to fully understand their investment process and answer questions identified during our material review. Important attributes that we typically evaluate in researching managers for recommendation include but are not limited the stability and consistency of investment process, source of historical performance (attribution), and the appropriateness of the manager’s investment philosophy. We believe the process should be a comprehensive assessment of a firm’s prospects for continued success. We work through distinct phases intended to bypass strategies that are not appropriate investment options and identify others that we believe are most appropriate. Our experience in manager evaluation provides a unique perspective on the drivers of long-term success among managers and helps to identify potential red flags. | Our specialty areas include divestment, impact investing, ESG integration, and diverse managers. | We do not vote proxies for clients. We understand that voting proxies in accordance with an entity’s mission is a key element in shareholder advocacy. The responsibility remains with the client and the managers that buy the securities for which a vote is required. However, we are prepared to analyze proxy matters and assist clients with proxy voting recommendations. Our recommendations are based on what we believe would be in the best interest of our clients. | 5% | 32% | 5% | Yes, 2015 | Mission Investors Exchange Diverse Asset Managers Exchange CERES US SIF BASIC Boston |
17 | TIFF Investment Management www.tiff.org | Fully outsourced management | $6.9bn as of 6/30/2020 | n/a | 100% | 28% (includes all education-related institutions. TIFF does not maintain subcategories) | $12m | unknown | unknown | commingled pool with a globally diverse asset mix | 50% (we don't have consultants so used all staff to answer this one) | 25% | 56% | N/A | 14% | Please see attached "TIFF ESG Integration Statement" | Please see attached "TIFF's ESG Process (with appendix) July 2020" | Divestment, ESG integration, ESG engagement, sustainability-themed investing | We are currently participating in working groups with PRI and SASB. We participated in an IEN working group in the past. We are currently enhancing our process around shareholder engagement practices. We are prepared to vote proxies according to ISS's SRI or sustainability standard; we expect to do this if/when the TIFF sustainability strategies are large enough to have separately managed accounts with our underlying managers. | 5% of equity managers (9% have female portfolio managers; 32% have minority portfolio managers) 12% of hedge fund managers (12% have female portfolio managers; 24% have minority portfolio managers) 20% of private equity managers (73% have at least one minority or woman partner) | 27% of equity managers overall; 71% in TIFF's Sustainability Strategies 18% of hedge fund managers overall; 80% in TIFF's Sustainability Strategies 91% of private equity managers | 9% of equity managers overall; 29% in TIFF's Sustainability Strategies 12% of hedge fund managers overall; 40% in TIFFs Sustainability Strategies 20% of private equity managers | Yes. Q3 2020. | MSCI (for ESG reporting and research), SASB (our CIO is on the board of the SASB Foundation) |
18 | Tideline | |||||||||||||||||||||||
19 | Verus Advisory, Inc. https://www.verusinvestments.com/ | Fully outsourced management and discretionary consulting | $3.7 billion | $396 billion | 8.7% 44 non-profits sponsor 123 discrete pools with total market value of $34.6 billion. Non-profits constitute almost 29% of our client base, but public pension fund clients, although smaller in number, dominate our total AUA (about 84%) because of their multi-billion dollar size. | 0.98% 17 asset pools sponsored by nine public and private higher education institutions. | $393 million | 12 | $219 million | Funds/ETFs, separately managed accounts, individual companies, commingled funds | 40% | 37% | 14% Consulting associates, who assist consultants. | 56% All 25 Verus consultants have taken and passed the "ESG Investing Course & SRI Education" sponsored by the CFA Institute. The course had three modules: (1) ESG considerations in invsting, (2) application of different methods of considering ESG issues, and (3) Salient issues in the debate on ESG considerations. The Not-for-Profit sector team within our Consulting team specialize in SRI/ESG. Taft-Hartley sector team consultants specialize in labor friendly mandates that are part of mission-driven objectvies. Several public fund specialists are also ESG/SRI practitioners. | 44% All 32 researchers and consulting associates have taken and passed the "ESG Investing Course & SRI Education" sponsored by the CFA Institute. Our Manager Research teams for Public and Private Markets evaluate and rate ESG considerations in investment due diligence and, on this basis, may be considered specialists. | Attached. | Our Public Markets and Private Markets Research teams evaluates the following data points in its ESG evaluation of managers: (1) Holdings (count) is the number of securities in the fund ; (2) ESG coverage - measures the percent of the that is covered in the ESG model; (3) ESG rating - The MSCI ESG Fund Ratings is designed to assess the resilience of a fund’s aggregate holdings to long term ESG risks and opportunities. Highly rated funds consist of issuers with leading or improving management of key ESG risks; (4) ESG quality score - Each fund in the coverage universe will receive an overall “Fund ESG Quality Score” (0-10) as well as an Environmental, Social and Governance Score (0-10). The overall “Fund ESG Quality Score” aggregates issuer-level ESG scores to provide investors with an indication of the overall fund-level ESG score based on the fund’s underlying holdings; (5) ESG quality score pctl global - Every fund included in MSCI ESG Fund Ratings receives a “Fund ESG Quality Score – Global Percentile”. The Global Percentile notes the percentage of funds, covered by MSCI ESG Fund Ratings, with a score lower than, or equal to, a fund’s “ESG Quality Score”. Considered in conjunction, the Global and Peer Percentiles position a fund from both an absolute (product-wide) and relative (peer category) perspective. | We define ESG under the risk umbrella as opposed to a return enhancing exposure. Our goal is to manage the risk of investing in a manner that reflects the values of the organization. We help clients meet their ESG mandates while fulfilling their fiduciary duty to pursue economic value through more complete and better-informed decisions, decisions that allow them to uncover opportunities to invest proactively, in alignment with their values and the values of their organization. We have helped clients incorporate ESG mandates utilizing three approaches: ― Values Focused – Negative/Positive security and sector screening: Verus uses a proprietary database to source managers or strategies in most asset classes that focus more on simple exclusion or inclusion of certain sectors or companies based on specific social, mission-aligned criteria. ― Stewardship Focused: Verus has identified managers than can both demonstrate alpha in their investment area and affect or support change through stock/bond ownership to assist clients seeking to align their portfolio holdings with their mission. These managers will use such techniques as proxy voting, collective lobbying and corporate education to “help” companies with strong fundamentals and practices in some areas, improve other aspects of their corporate footprint to promote long-term value creation. ― Impact Investing: Direct expression of values either in a targeted exposure or holistic, throughout the total investment portfolio, where feasible, to achieve both attractive returns and desired impact. | Verus does not vote proxies for clients. We will assist in the development of client proxy voting policies or the selection of a proxy voting service, where needed. For example, for Taft-Hartley clients who utilize separately managed accounts and who do not engage a proxy voting service, we typically advise assigning this responsibility to the investment manager with specific instruction to vote per AFL/CIO guidelines. On occasion, mutual fund companies require proxy votes from fund investors. In such cases, we respond to client requests for our insight into the issue and advise on whether the result of the proxy vote changes our view of a manager’s suitability for inclusion in our client’s portfolio. We will monitor managers’ proxy voting and/or engagement policies for clients that specifically require such monitoring be conducted for their existing managers. For this process, we would request the managers provide Verus with copies of their proxy voting and/or engagement policies as well as their annual proxy voting record and a summary of engagement activities. | N/A | 26% | 1% | No. | N/A |
20 | Wilshire Associates | Fully outsourced management and discretionary consulting | $73,369,159,450.00 | $1,105,457,765,504.00 | 5% (Wilshire Consulting assets, as of March 31, 2020) | 3.00% | $781,828.00 | 7 | $337,768,041.00 | Wilshire invests client assets in all these ways. | 34% | 36% | 54% | 24% | 28% | https://wilshire.com/ESG-Policy | We include nine ESG questions in our manager due diligence questionnaire which we send to our universe of high conviction managers. The questions are designed to understand the manager’s motivation and approach to ESG integration; assess the degree of resources supporting ESG and impact investing capabilities; and how managers engage with and monitor ESG improvements at portfolio companies. We also ask for and review the following materials: Sample buy/sell research note; ESG portfolio analysis e.g. ESG ratings or carbon footprint vs benchmark; UN PRI assessment; Annual ESG / Stewardship client report; SASB or GRESB report (if applicable). | In responding to client needs, we can advise on a broad spectrum of approaches including: integrating ESG information into traditional investment analysis; stewardship best practices such as proxy voting; thematic or impact investments; and values-based investing which may involve divestment. Wilshire’s diverse manager initiative, part of its institutional consulting practice, has two strategic objectives: boosting awareness of these managers and providing proactive outreach to this group. Wilshire includes a diverse-owned firm in every public securities manager search we conduct for advisory clients, where products are available that fit the client mandate. This raises the profile of diverse owned firms among our clients and consultants Our outreach includes a series of educational seminars for diverse owned managers entitled, “Welcome to Wilshire.” The agenda includes presentations from Wilshire’s senior management and the Manager Research team plus one-on-one time with our consultants. In the spirit of public accountability, Wilshire publishes the annual results of this initiative | In monitoring managers’ proxy voting and/or engagement policies regarding ESG, we ask about how investment managers monitor underlying portfolio companies. For example, ESG leaders are expected to demonstrate: (i) a clear process (screens, exposure, etc.) for identifying engagement targets and (ii) the existence of clear value enhancing/risk reduction engagement plans (i.e., objectives, timeline, escalation procedure, collaboration with other shareholders, etc.). We do not evaluate a manager’s compliance with such policies. | 11.6% | For the focus list of recommended managers, we categorize managers into three groups: neutral, integrator and leader. Of the roughly 230 strategies in our focus list, 40% are neutral; 29% are integrators; 28% are leaders. | <5% | Yes. 2016 | We invest in ESG resources and capabilities including the firm-wide Environmental, Social, Governance and Diversity Committee (ESG DC), led by Daniel Ingram, Senior Vice President for Responsible Investment. The ESG DC coordinates Wilshire’s Diversity and ESG initiatives, policies and practices. |
21 | ||||||||||||||||||||||||
22 | ||||||||||||||||||||||||
23 | ||||||||||||||||||||||||
24 | ||||||||||||||||||||||||
25 | ||||||||||||||||||||||||
26 | ||||||||||||||||||||||||
27 | ||||||||||||||||||||||||
28 | ||||||||||||||||||||||||
29 | ||||||||||||||||||||||||
30 | ||||||||||||||||||||||||
31 | ||||||||||||||||||||||||
32 | ||||||||||||||||||||||||
33 | ||||||||||||||||||||||||
34 | ||||||||||||||||||||||||
35 | ||||||||||||||||||||||||
36 | ||||||||||||||||||||||||
37 | ||||||||||||||||||||||||
38 | ||||||||||||||||||||||||
39 | ||||||||||||||||||||||||
40 | ||||||||||||||||||||||||
41 | ||||||||||||||||||||||||
42 | ||||||||||||||||||||||||
43 | ||||||||||||||||||||||||
44 | ||||||||||||||||||||||||
45 | ||||||||||||||||||||||||
46 | ||||||||||||||||||||||||
47 | ||||||||||||||||||||||||
48 | ||||||||||||||||||||||||
49 | ||||||||||||||||||||||||
50 | ||||||||||||||||||||||||
51 | ||||||||||||||||||||||||
52 | ||||||||||||||||||||||||
53 | ||||||||||||||||||||||||
54 | ||||||||||||||||||||||||
55 | ||||||||||||||||||||||||
56 | ||||||||||||||||||||||||
57 | ||||||||||||||||||||||||
58 | ||||||||||||||||||||||||
59 | ||||||||||||||||||||||||
60 | ||||||||||||||||||||||||
61 | ||||||||||||||||||||||||
62 | ||||||||||||||||||||||||
63 | ||||||||||||||||||||||||
64 | ||||||||||||||||||||||||
65 | ||||||||||||||||||||||||
66 | ||||||||||||||||||||||||
67 | ||||||||||||||||||||||||
68 | ||||||||||||||||||||||||
69 | ||||||||||||||||||||||||
70 | ||||||||||||||||||||||||
71 | ||||||||||||||||||||||||
72 | ||||||||||||||||||||||||
73 | ||||||||||||||||||||||||
74 | ||||||||||||||||||||||||
75 | ||||||||||||||||||||||||
76 | ||||||||||||||||||||||||
77 | ||||||||||||||||||||||||
78 | ||||||||||||||||||||||||
79 | ||||||||||||||||||||||||
80 | ||||||||||||||||||||||||
81 | ||||||||||||||||||||||||
82 | ||||||||||||||||||||||||
83 | ||||||||||||||||||||||||
84 | ||||||||||||||||||||||||
85 | ||||||||||||||||||||||||
86 | ||||||||||||||||||||||||
87 | ||||||||||||||||||||||||
88 | ||||||||||||||||||||||||
89 | ||||||||||||||||||||||||
90 | ||||||||||||||||||||||||
91 | ||||||||||||||||||||||||
92 | ||||||||||||||||||||||||
93 | ||||||||||||||||||||||||
94 | ||||||||||||||||||||||||
95 | ||||||||||||||||||||||||
96 | ||||||||||||||||||||||||
97 | ||||||||||||||||||||||||
98 | ||||||||||||||||||||||||
99 | ||||||||||||||||||||||||
100 |