Firm’s Research Concludes That Optimizing for Diversification Outperforms Traditional Risk ApproachGravity Investments (Gravity), a premier financial engineering firm responsible for the Gsphere visual asset allocation platform, today issued a paper on portfolio optimization and the comparative value of optimizing specifically for diversification.The paper, entitled How True Diversification™ Preserves Capital, concluded that optimizing portfolios for diversification provides a positive impact to bear market returns at entirely no cost to bull market returns, resulting in dramatically better performance across a full market cycle. Diversification, not risk, is thus warranted according to Gravity as the focus of portfolio optimization for asset allocation.“We’ve known for some time that True Diversification is a primary enabler of achieving higher returns,” said James Damschroder, Founder of Gravity Investments and the firm’s chief financial engineer. “Now we know precisely why. With True Diversification, there really is such a thing as a free lunch.”Gravity conducted research on 95 actual Registered Investment Advisor portfolios in place between the years 2002 and 2009. The firm examined the portfolios across three time periods--bull market, bear market, and the full cycle, grading each portfolio--using Gravity’s proprietary diversification measurement.IPC, Gravity’s patented measurement of diversification, produces the weighted average of all unique correlations in a portfolio and provides a measurement of diversification specifically tuned to systematic risk. Gravity calls this advancement in the science of diversification measurement and optimization “True Diversification”.The results of Gravity’s research indicated that every extra percent of IPC was responsible for protecting 98 basis points of capital in a down market. By comparison, similar changes in standard deviation showed a much weaker relationship to returns in both bull and bear markets.“Based on these results, it’s reasonable to infer that the traditional practice of using a Markowitz efficient frontier as a menu of portfolios may be of dubious merit,” says Damschroder. “It’s hard to argue the logic of True Diversification when it protects capital in down markets without sacrificing gains in up markets.”Gravity’s innovative approach to portfolio construction will benefit virtually every sponsor of investment product, including broker/dealers, RIAs, insurance companies, mutual fund companies, hedge funds, pension plans, bank trust groups, 401(k) providers, fund consultants, family offices, foundations, and endowments.
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Grail Advisors, a leader in the development and distribution of active Exchange Traded Funds (ETFs), today announced the registration of four new actively-managed ETFs--RP Growth ETF, RP Focused Large Cap Growth ETF, RP Technology ETF, and RP Financials ETF. The new offerings represent the industry’s first traditional actively-managed ETFs using a single-manager approach. New York-based RiverPark Advisors, LLC (RiverPark) will serve as the primary sub-adviser for each of the funds. Wedgewood Partners, Inc., of St. Louis will also serve as sub-adviser to the RP Focused Large Cap Growth ETF. “One of our goals from the outset was to bring traditional, active fund managers to the ETF marketplace,” said William M. Thomas, CEO of Grail Advisors LLC. “With these four new RiverPark offerings, that day has come, and it’s come a lot sooner than even the most enthusiastic proponent of the ETF structure could have imagined.” Grail unveiled the market’s first true, actively-managed equity ETF last month—the Grail American Beacon Large Cap Value ETF—and will follow up this summer with the Grail American Beacon International Equity ETF, the first international ETF of its kind. Those funds were designed to incorporate the traditional investment management approach and a multi-manager format into an active ETF structure. The single-manager RiverPark funds will take active ETFs a step further. The funds will be designed to combine all the benefits of an ETF structure—lower costs, tax efficiency, transparency of holdings, and intra-day trading—with actively-managed strategies from a veteran asset management team. RiverPark will provide day-to-day portfolio management services to RP Growth ETF, RP Technology ETF, and RP Financials ETF, and, in conjunction with Grail, oversee the day-to-day portfolio management services provided by Wedgewood to RP Focused Large Cap Growth. RiverPark was founded in 2006 by Morty Schaja, CFA, who serves as the firm’s Chief Executive Officer, and Mitchell Rubin, CFA, who is the Chief Investment Officer. All of RiverPark’s principals, including Mr. Schaja, Mr. Rubin, and portfolio manager Conrad van Tienhoven, came to the firm from Baron Funds. RiverPark has assembled a prestigious group of outside advisors to support the senior team in the management of the funds. David A. Rolfe, CFA, will be the portfolio manager of RP Focused Large Cap Growth ETF. Mr. Rolfe is the Chief Investment Officer of Wedgewood, and together with Anthony L. Guerrerio, the firm’s CEO and founder, has worked on various large-cap growth strategies for the firm since its inception in 1992. Each of the funds’ managers will have the discretion on a daily basis to choose securities for the ETF’s portfolio consistent with the ETF’s investment objective. Unlike index-based ETFs that seek to replicate the holdings of a specified index, each of the new Grail ETFs will use an actively-managed investment strategy to meet its investment objective. All four of the funds’ holdings will be fully disclosed on a daily basis. “We fully embrace the movement toward full transparency, continuous liquidity, and a low-cost fee structure,” said Mr. Schaja from RiverPark Advisors. “In today’s environment, investors are demanding a superior vehicle in which to make their investments without having to sacrifice access to world-class portfolio management. We’re thrilled to be on the cutting edge of this evolution with Grail.” Trading for shares the new ETFs is expected to begin September 1 on the NYSE Arca, Inc. The new funds will represent the latest in what is anticipated to be a series of offerings of the Grail Advisors ETF Trust. The San Francisco-based firm intends to make the benefits of ETFs available to the large pool of investors who currently select traditional mutual funds or other vehicles to access active portfolio management. Mr. Thomas says Grail Advisors is currently in discussions with a number of leading financial institutions and asset managers and expects to launch more customized, actively-managed ETFs this year.
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SRI in the Rockies, the largest and longest-running sustainable and responsible investing conference in the world, will mark its 20th year and highlight growing opportunities for investors who embrace innovative investment strategies targeted on environmental, social, and governance factors. More than 650 attendees from the U.S. and around the world are expected to gather October 25–28, 2009 at the JW Marriott Starr Pass Resort & Spa in Tucson, Arizona. The 20th Anniversary SRI in the Rockies Conference. From Crisis to Opportunity: Investing for a Sustainable Economy, will be presented by First Affirmative Financial Network in collaboration with the Social Investment Forum. “Sustainable and responsible investing is moving rapidly to the forefront of investment strategy,” said Steve Schueth, President of First Affirmative. “This year’s conference has a particular responsibility to highlight how we all can play a crucial role in finding real market solutions to the world’s environmental and social problems and make money in the process.” The 2009 conference list of speakers include: James K. Galbraith, PhD, the Lloyd M. Bentsen chair in Government and Business Relations and professor of Economics at the LBJ School of Public Affairs at the University of Texas at Austin; Mindy S. Lubber, president of Ceres, the leading U.S. coalition of investors and environmental leaders working to improve corporate environmental, social, and governance practices; Auden Schendler, executive director of Sustainability at Aspen Skiing Company; and Andy Serwer, managing editor of FORTUNE magazine. Visit SRI in the Rockies (http://www.sriintherockies.com) to access speaker photos and bios. Lisa Woll, CEO of the Social Investment Forum, said: “The 20th anniversary of SRI in the Rockies occurs in a year in which there already have been significant steps forward in the national commitment to advancing policies that support good governance, transparency, and concerted attention on environmental and social issues within businesses and financial institutions. With national attention on addressing the financial crisis and regulatory frameworks, dealing with climate change and creating a clean, green economy, and looking at broad social and governance issues including executive compensation and mortgage and credit card reform, we believe that more individual and institutional investors will become socially responsible investors.” As the premier industry event, SRI in the Rockies attracts a wide range of investment professionals—from financial advisors to institutional investors and mutual fund companies, as well as social research and proxy voting organizations. Members of religious organizations and social change non-profits, and officers from community development banks, credit unions, and related organizations also will be in attendance. “Given the growing global awareness of investing for a more sustainable future, this year’s conference is all about identifying opportunities that are presenting themselves at this important juncture in the history of investing,” said Schueth. The 2009 conference will benefit from the support of leaders in the SRI industry including Calvert, a mutual fund company that for 30 years has been offering the nation's largest array of sustainable and responsible mutual funds. Calvert is unique among sponsoring organizations in that it has been a supporter of all 20 SRI in the Rockies conferences. For a full list of sponsoring organizations, visit http://www.sriintherockies.com/sponsors.jsp.
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First Affirmative Financial Network, a leading provider of investment management and consulting services to financial advisors and their socially conscious clients, is rolling out a new regional conference series designed to help investment advisors and financial planners accelerate the move to socially responsible investing (SRI).Each BaseCamp SRI is a one-day event specifically designed for investment professionals seeking to help their clients direct investment capital in ways that are positive, healthy, and transformative.The five-city series starts in Denver on March 26, 2009 with subsequent stops in Portland (April 28), New York, (May 18), San Francisco (June 4), and Seattle (July 9). There is no charge for qualified advisors to attend a BaseCamp and lunch will be served. For more information and to register, go to http://basecampsri.firstaffirmative.com.“Like a mountaineering base camp, BaseCamp SRI is designed to help an advisor make it to the top,” said First Affirmative President Steve Schueth. “The sustainable and responsible investing landscape is an exciting one, and each BaseCamp will be packed with good, timely information presented by experts and peers.”As the producer of the annual SRI in the Rockies Conference, First Affirmative is uniquely positioned to assist in the professional growth of investment advisors who work with investor clients interested in green investing and integrating social responsibility or sustainability into the investment process. Each BaseCamp SRI will provide valuable skills and strategies investment advisors can implement immediately—practical information and tools to better serve the unique needs of socially conscious investor clients, including:• Creating an environment of trust conducive to meaningful conversations about the issues clients and prospects care deeply about.• Developing the confidence necessary to initiate conversations about combining social responsibility with investment performance.• Understanding the available resources, including investment products, social networks, discussion forums, Q&A listings, a network of local experts, and a community of peers.• Learning about critical and controversial global issues to help clients make informed choices.First Affirmative has focused on quality portfolio management for socially conscious investors since 1988. Says Schueth, “Whether you call it green, values-based, socially responsible, or sustainable investing, portfolio management should be prudent and rewarding for both investors and advisors. When it comes to investing, there’s no longer any reason to separate good fortune from good will.”MORE ABOUT FIRST AFFIRMATIVEFirst Affirmative Financial Network, LLC (www.FirstAffirmative.com) is an independent fee-only Registered Investment Advisor (SEC File #801-56587). The company manages over $500 million in client portfolios and offers consulting and asset management services through a nationwide network of investment professionals who specialize in serving socially conscious investors. First Affirmative produces the annual SRI in the Rockies Conference in collaboration with the non-profit Social Investment Forum. The 20th annual SRI in the Rockies Conference (www.SRIintheRockies.com) will be October 25–28, 2009 at the JW Marriott Starr Pass Resort & Spa, Tucson, Arizona.For more information about BaseCamp SRI, go to http://basecampsri.firstaffirmative.com or contact Danielle Burns at 877-542-8583 /danielleburns@firstaffirmative.com.
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Posted by Erik Keith on October 21, 2008 at 10:35am
Socially responsible investment industry leaders will focus considerable attention on the global financial crisis at the 19th annual SRI in the Rockies Conference October 26-28, 2008.A record 720 participants are expected to converge on The Fairmont Chateau Whistler, in Whistler, British Columbia. Several of the scheduled conference sessions will feature experts discussing how socially conscious investors can help to reshape the future of the global financial system around the principles of transparency, fairness, good governance, and long-term thinking, including:• A CEO Roundtable on Industry Trends;• A Banking Sector panel focused on Sustainable Global Finance;• A session on Philanthropy and Mission-Related Investing;• An expert panel on the Sub-Prime Mortgage Situation;• A roundtable discussion with International SRI Industry Leaders;• A discussion about how wise management of environmental, social, and governance (ESG) issues can reduce risk and position companies to excel over the long term; and• A Special Session that will focus specifically on the global financial crisis.“This is a unique opportunity for SRI leaders to strategize on integrating the principles of socially and environmentally responsible investing – such as responsible corporate governance – into the nation’s financial infrastructure moving forward,” said Lisa Woll, Chief Executive Officer of the Social Investment Forum (SIF).SRI in the Rockies, a collaboration between First Affirmative Financial Network and the Social Investment Forum, is the premier annual conference for the sustainable and responsible investment (SRI) industry in North America.“The financial crisis has put a spotlight on some of the worst practices on Wall Street, many of which socially conscious investors have worked to remedy over the years,” said George R. Gay, CEO of First Affirmative Financial Network and a Director of the Social Investment Forum. “We believe that a more socially responsible approach to investing can—and should—play a role in helping to transform the investing world.”SRI in the Rockies takes place against the backdrop of an industry that continues to expand rapidly. According to the SIF’s “2007 Trends Report,” nearly one out of every nine dollars under professional management in the U.S. in 2007 was involved in SRI. From 2005-2007, SRI assets increased more than 18 percent while the broader universe of professionally managed assets expanded less than 3 percent.
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Posted by Erik Keith on October 15, 2008 at 5:01pm
Obermeyer Asset Management Company (www.obermeyerasset.com) announced today the opening of its new Denver Colorado office at 3200 Cherry Creek South Drive, Suite 480.Located in the heart of the Cherry Creek business district, the office will allow the Aspen-headquartered discretionary asset management firm to expand its presence in the Colorado market. Obermeyer manages the wealth of affluent individuals, families, foundations and corporations by developing investment portfolios tailored to their individual circumstances.Company president Wally Obermeyer, recently named one of America’s Top 100 independent advisors by Barron's magazine, said the new office demonstrates the firm’s commitment to serving Colorado’s affluent investors. “Over the years, we’ve built a solid reputation around the Roaring Fork Valley for delivering solid investment returns and world class service,” said Obermeyer. “We’re pleased about this office opening and the increased investment opportunities it affords the entire Colorado community.”Obermeyer, who entered the investment business in 1994 with $1 million under management, has grown the firm’s asset base to more than $600 million today. The investment team builds and manages a diverse range of equity, fixed income, and alternative investment strategies for about 250 families and their associations.“As our reputation grows, so does the need to serve the investment community here in the Metro Area and around the state,” said Lonny Kandel, Denver Region Vice President and Director of the Cherry Creek office. “Obermeyer has a tremendous wealth management legacy, and I’m very pleased to build on that legacy in Denver.”
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Investors who earmark at least one percent of their capital for community investment will be honored at the 2008 SRI in the Rockies Conference, the premier annual conference for the sustainable and responsible investment (SRI) industry in North America.“Community investing, a core SRI strategy, has successfully served the same populations currently reeling from bad loans made by predatory lenders,” said Lisa Woll, chief executive officer of the Social Investment Forum (SIF). “Continuing to expand the pool of funds available for community investing is more important now than ever before.”SRI in the Rockies is collaboration between the Social Investment Forum and First Affirmative Financial Network. More than 700 participants are expected to gather in Whistler, British Columbia, Canada, October 26–28, 2008 for the 19th annual SRI in the Rockies Conference.Community investors’ direct capital to communities underserved by traditional financial services, providing access to credit, equity, capital and basic banking products that economically distressed communities and lower-income borrowers otherwise would not have.Community investing is the fastest growing component of SRI. Investment in the field has increased from $5.4 billion in 1999 to more than $25 billion in 2007. The goal of the “1% or More in Community Campaign” is for SIF members to help push community investment in the United States to $30 billion by 2010."The ‘1% or More for Community Campaign’ has the potential to impact wide-scale investor action across the investment community, positively impacting the economically disadvantaged communities of the hurricane-torn gulf coast, other low-income communities across the United States, and in developing countries around the world," said William Bynum, executive director, Enterprise Corporation of the Delta.SIF and Co-op America co-founded the “1% or More in Community Campaign” in 2001 to advance community investing among Social Investment Forum members by encouraging them to shift one percent or more of their investment dollars into community investing, thus making financing available to economically distressed communities and lower income families.SIF members who have met the campaign challenge will be honored during a breakfast at SRI in the Rockies on October 27th. More information about the Social Investment Forum along with a current list of SIF members who have achieved the “1% or More in Community Investing Campaign” goal is available at www.communityinvest.org.
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Posted by Erik Keith on September 24, 2008 at 2:00pm
Award-winning veteran journalist David Brancaccio, Stephen Lewis, Former Canadian Ambassador to the United Nations and Barbara J. Krumsiek, Chair, CEO, and President of Calvert Group, Ltd. are among a powerful group of speakers and topics slated for the 19th annual SRI in the Rockies Conference, October 26–29, 2008.Mr. Brancaccio, host of the PBS news magazine NOW and author of Squandering Aimlessly; will moderate a roundtable on industry trends at SRI in the Rockies, which will be held at The Fairmont Chateau Whistler in the stunning Canadian Rockies in Whistler, British Columbia. This year’s meeting is expected to draw a record 700 sustainable and responsible investment (SRI) industry practitioners and professionals from related fields in the United States, Canada, and around the world—the largest gathering in the conference’s 19-year history.The 2008 conference theme is Beyond Borders: Investing & Partnering for a Sustainable World. Sessions will focus on sustainable finance and investing, ramifications of the credit crisis, business ethics and transparency, new trends in shareholder activism, climate change, various emerging issues and industries like clean tech, the latest on community investing, and a host of other topics.In addition to Mr. Brancaccio, plenary speakers include:• Doug Bauer, Senior Vice President , Rockefeller Philanthropy Advisors• Melissa Brown, former Executive Director, Association of Sustainable and Responsible Investment in Asia (ASrIA)• Timothy "Scott" Case, Technologist, Entrepreneur, Inventor: Co-Founder, priceline.com• Michelle Chan, Program Manager, Green Investments Project, Friends of the Earth; President of BankTrack• Dave Chen, Venture Capitalist; Chairman of the Oregon Innovation Council• Matt Christensen, Executive Director, European Social Investment Forum• Eugene Ellmen, Executive Director, Social Investment Organization, Canada• Sarah Forrest, Executive Director, Goldman Sachs Sustain, London• Reynold Hert, President, CEO and Director, Western Forest Products Inc.• Jennifer James, Urban Cultural Anthropologist• Michael Jantzi, President and Founder, Jantzi Research• Barbara J. Krumsiek, Chair, CEO, and President of Calvert Group, Ltd.• Valerie Langer, Director, BC Coast Campaigns, ForestEthics• Kenneth G. Lay, Vice President and Treasurer, The World Bank• Stephen Lewis, Former Canadian Ambassador to the United Nations• Ross McMillan, President and CEO, Tides Canada Foundation• Ken Melamed, Mayor of the Resort Municipality of Whistler, BC• Sandra Odendahl, Chair, North American Task Force, UN Environment Programme Finance Initiative (UNEP FI)• Jack Robinson, Founder, Winslow Management Company• Richard Russell, Board President, The Russell Family Foundation• Art Sterritt, Executive Director of the Coastal First Nations• Lisa Woll, CEO of the Social Investment Forum (U.S.)SRI in the Rockies is a partnership between First Affirmative Financial Network and the non-profit Social Investment Forum (SIF). The conference attracts a wide range of investment professionals—from financial advisors to institutional investors and mutual fund companies—as well as social research and proxy voting organizations. Members of religious organizations and social change non-profits, and officers from community development banks, credit unions and related organizations also will be in attendance.
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Posted by Erik Keith on September 11, 2008 at 6:15pm
First Affirmative Financial Network and the Social Investment Forum, hosts of the 19th annual SRI in the Rockies Conference, have designed their 2008 event to be a “green meeting.” This year’s conference is expected to draw a record 700 sustainable and responsible investment (SRI) industry practitioners and professionals to Whistler, British Columbia, Canada, October 26–28, 2008.According to the Convention Industry Council's definition, a green meeting is “a meeting or event that incorporates environmental considerations to minimize its negative impact on the environment.”George Gay, CEO of First Affirmative, is planning for the 2008 SRI in the Rockies Conference to be a model of social responsibility, and not only with regard to the environment. “It's easy to feel overwhelmed by the changes necessary to create a genuinely ‘green’ meeting,” says Gay. “But whatever we do now—even simply asking questions of hotels—contributes to the momentum that will move green meetings to the mainstream.”As part of First Affirmative’s conference planning process, hotels are asked to complete a request for proposal (RFP) that includes the Best Practices Survey developed by the Green Hotel Initiative (GHI). Hotels that fail to address the RFP's sustainability questions or to complete the GHI survey are eliminated from consideration.The SRI in the Rockies request for proposal also includes extensive questions regarding a hotel's sustainability efforts, such as whether or not the property has evaluated its carbon footprint, is LEED-certified (Leadership in Energy and Environmental Design), uses locally grown and/or organic food, has a recycling program, and exhibits a commitment to energy efficiency in its operation.“It's an evolutionary, rather than a revolutionary, process,” says First Affirmative President, Steve Schueth. “As we continue to raise the bar on this event each year, we encourage more green events and conventions across the spectrum.”Greening SRI in the Rockies includes working with hotel staff onsite to create awareness as well as lowering energy usage. For example, rather than daily room delivery of newspapers, they are distributed by request. At meals, pitchers of water and other beverages are made available with empty glasses rather than all glasses being pre-filled; bottled water is not available. When attendees enter their rooms, they will find that the television is off, as is all superfluous lighting. Rather than housekeeping replacing bed linens and towels daily, they are instructed to replace them only upon request. The Conference has a Recycling Sponsor, and a Carbon Offset Sponsor. For additional information, please go to http://www.sriintherockies.com/d/SRIR08_Sustainability.pdf.This year’s conference venue, the Fairmont Chateau Whistler, has been awarded a 4 Green Key Rating in the Green Key Eco-Rating Program. For more information, please go to http://www.hotelassociation.ca/site/programs/green_key.htm.A new study, “The Green Event Imperative” by the Event Marketing Institute, found that investment in green event marketing could double over the next 18 months. But the study also found that companies claiming to be active in green initiatives have a significant gap between their participation and their level of commitment.ABOUT FIRST AFFIRMATIVEFirst Affirmative Financial Network, LLC (www.FirstAffirmative.com) is an independent fee-only Registered Investment Advisor (SEC File #801-5687). The company, which manages about $700 million in client portfolios, offers consulting and asset management services through a nationwide network of investment professionals who specialize in serving socially conscious investors. First Affirmative produces the annual SRI in the Rockies Conference (www.SRIintheRockies.com), the premier conference for the sustainable and responsible investment industry in North America.ABOUT THE SOCIAL INVESTMENT FORUMThe Social Investment Forum (SIF) is the U.S. membership association dedicated to advancing the concept, practice, and growth of socially and environmentally responsible investing. SIF members integrate economic, environmental, social, and governance factors into their investment decisions. SIF membership includes more than 500 social investment practitioners and institutions, including financial professionals, analysts, portfolio managers, banks, mutual funds, researchers, foundations, community development organizations, and public educators. More information about the Forum, including the 2007 Report on Socially Responsible Investing Trends in the United States, is available at www.socialinvest.org.REGISTRATION AND SPONSORSHIPSTo register to attend the conference, go to www.sriintherockies.com/register.jsp. For assistance with registration and sponsorships, please contact Krystala Kalil at 303-442-4463 / krystala@SRIintheRockies.com.MEDIA QUESTIONSMo Shafroth for First Affirmative and SRI in the Rockies: 720-470-3653 / mshafroth@csg-pr.comPatrick Mitchell for the Social Investment Forum: 703-276-3266 / pmitchell@hastingsgroup.com
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