Value Proposition canvas- Customer needs and pains
Impact Investing and its Future Impact on Business Priorities
1. 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
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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
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4. What is HIP Investing?
All investing – including muni bonds, corporate bonds and agency bonds – can create
human impact and potential profit potential.
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5. HIP Criteria
HIP’s 5 Dimensions of Measurable Impact
Can Lead to Sustainable, Profitable Growth
HIP companies innovate to Which can result in
answer five human needs: sustainable, profitable growth for all
stakeholders:
• Physical Health
Health Innovative Products
• Mental Agility
+ Services
• Income Growth
Wealth • Asset Accumulation Inspired People
+ Teamwork
• Carbon Neutrality
Earth • Reusable Products
Increased Profits
• Gender Balance + Returns
Equality • Ethnic Diversity
Improved Planet
• Transparent & Open
Trust • Credible & Ethical
+ Society
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6. HIP Process
The HIP Methodology Process
Scores, Rates and Ranks Investments
1
2 3 4
55 Quant-
Quant-
HIP Products
Operating Mgmt Index
Index ifiable
ifiable
Dimensions & Score
Services
Metrics Decisions Weighting
Weighting Impact
Impact
• Analytics based on 30 quantifiable metrics
• Recognizes new opportunities and risks
• HIP fundamentals drive weighting of portfolio
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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
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8. Education: Universities
HIP Comparison (sample)
Occidental University of
University California
University Type: Liberal Arts College National University
Human Impact
(100% maximum)
100% 79%
Health Impact (60% weight) 60% 46%
• Student-Teacher Ratio 20% 11%
(20% weight) (9:1 ratio) (17:1 ratio)
• Freshman Retention 20% 20%
Rate (20% weight) (93% retention) (93% retention)
• 4-year Graduation 20% 15%
Rate (20% weight) (80% graduation) (60% graduation)
Wealth/Equality (40% wgt.) 40% 33%
• Average Percent of
40% 33%
Need Met through
(100% needs met) (83% needs met)
Financial Aid (40% wgt.)
9. Education: Public Universities
HIP Comparison (sample)
University of University of
California Texas
University Type: National University National University
Human Impact
(100% maximum)
79% 58%
Health Impact (60% weight) 46% 32%
• Student-Teacher Ratio 11% 10%
(20% weight) (17:1 ratio) (18:1 ratio)
• Freshman Retention 20% 16%
Rate (20% weight) (93% retention) (74% retention)
• 4-year Graduation 15% 6%
Rate (20% weight) (60% graduation) (25% graduation)
Wealth/Equality (40% wgt.) 33% 26%
• Average Percent of
33% 26%
Need Met through
(83% needs met) (65% needs met)
Financial Aid (40% wgt.)
10. Corporate Bond Comparison – Pharma Industry
World’s leading generic drug maker
Strong top and bottom line growth
trajectory due to smart acquisition
history
HIP 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
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11. Corporate Bond Comparison – Pharma Industry
Global leader in healthcare products and
World’s leading generic drug maker
services
Strong top and bottom line growth
Strong cash flow and balance sheet
trajectory due to smart acquisition
history HIP rating in Top Quartile because:
HIP rating Below Average because : + JNJ’s Board and executive team enables
transparency and publishes commitments
- TEVA’s lack of information and
to achieving impact as well as financials
transparency in many areas that drive
higher impact, including its supply- + JNJ’s international quality
chain sustainability, energy usage and control, employee health and safety, and
wealth-building for employees environmental performance are strong
+ However, TEVA does have strong - However, JNJ’s product recalls in
performance in worker safety, worker several business units drags down the
retention, and customer satisfaction potential impact, and creates financial
volatility in lower revenue, higher cost
and shifted market value
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