Strategy / Fund Name Name Surname â Fund Manager
Investing for Impact and Sustainability Ameriprise Wealth Management Conference
For advisor use only. This material is not for inspection by, distribution or quotation to the general public. Investment advisory products and services are made available through Ameriprise Financial Services, Inc., a registered investment adviser. Ameriprise Financial Services, Inc. Member FINRA and SIPC.
Brian Erickson
Investment Research Group
James Dearborn Columbia Threadneedle Investments
For advisor use only. Not intended for inspection by, or distribution or quotation to the general public.
Jon Hale
Morningstar, Inc.
Agenda
Background and Opportunity Approach – Impact and Sustainability Advisor Impact Questions & Answers
For advisor use only. Not intended for inspection by, or distribution or quotation to the general public.
3
Biblically responsible investing (BRI)
Impact investing
Social investing
Sustainable and responsible investing (SRI)
ESG (Environmental, Social, Governance) Investing Values based investing Faith based investing Green investing
Sustainable investing Socially responsible investing (SRI) Socially conscious investing
For advisor use only. Not intended for inspection by, or distribution or quotation to the general public.
Interest in ESG Investing Growth in ESG AUM in the United States ($B) 6,200
3,744 2,169 2,323 2,164 2,290
2,711
Millennials
Female
84%
76%
3,069 Overall
71%
1,185 639 1995 1997 1999 2001 2003 2005 2007 2010 2012 2014 Source: US SIF Report on US Sustainable, Responsible and Impact Investing Trends, 2014 For advisor use only. Not intended for inspection by, or distribution or quotation to the general public.
Source: Sustainable Signals: The Individual Investor Perspective, Morgan Stanley Institute for Sustainable investing, February 2015
Brian Erickson
Investment Research Group
James Dearborn Columbia Threadneedle Investments
For advisor use only. Not intended for inspection by, or distribution or quotation to the general public.
Jon Hale
Morningstar, Inc.
https://www.columbiathreadneedleus.com/investment-products/mutual-funds/Columbia-U.S.Social-Bond-Fund/Class-A/details?cusip=19767A803#strategy-benefits
For advisor use only. Not intended for inspection by, or distribution or quotation to the general public.
7
• The Rating is a category-relative measure of the sustainability performance of companies held in a portfolio
• Sustainability performance = how well companies are managing their ESG risks and opportunities • Applies to all funds, globally • Based on quality ESG research
• Part of broader Morningstar Sustainable Investing initiative For advisor use only. Not intended for inspection by, or distribution or quotation to the general public.
Brian Erickson
Investment Research Group
James Dearborn Columbia Threadneedle Investments
For advisor use only. Not intended for inspection by, or distribution or quotation to the general public.
Jon Hale
Morningstar, Inc.
1. Make a list of clients who you think may be interested in this strategy Examples of clients that this may resonate with:
•
Younger investors and millennials who are more aware of global/ESG issues
•
Individuals working in or exposed to ESG or related fields/industries (e.g. social workers, non-profits, professors/educators, etc.)
•
Women clients
•
Clients with deep religious convictions
2. Get Familiar with the Resources Available Examples of resources available •
Advisor Compass
•
SRI whitepapers
•
Sustainable & Responsible Investing (SRI) portfolio list in the Equity team’s Focus List Investment Strategies For advisor use only. Not intended for inspection by, or distribution or quotation to the general public.
Social impact investing may increase risk due to the limitations and constraints involved in investment selection and, as a result, the fund may underperform other funds that do not consider the social impact. This information is being provided only as a general source of information, and is not a solicitation to buy or sell the securities mentioned. The information is not intended to be used as the sole basis for investment decisions, nor should it be construed as advice designed to meet the particular needs of an individual investor. Ameriprise Financial Services, Inc., Member FINRA and SIPC Investment risks — Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. Social impact investing may increase risk due to the limitations and constraints involved in investment selection and, as a result, the fund may underperform other funds that do not consider the social impact. Fixed-income securities present issuer default risk. A rise in interest rates may result in a price decline of fixed-income instruments held by the fund, negatively impacting its performance and NAV. Falling rates may result in the fund investing in lower yielding debt instruments, lowering the funds income and yield. These risks may be heightened for longer maturity and duration securities. Non-investmentgrade (high-yield or junk) securities present greater price volatility and more risk to principal and income than higher rated securities. Prepayment and extension risk exists as a loan, bond or other investment may be called, prepaid or redeemed before maturity and that similar yielding investments may not be available for purchase. The fund invests substantially in municipal securities and will be affected by tax, legislative, regulatory, demographic or political changes, as well as changes impacting a states financial, economic or other conditions. A relatively small number of tax-exempt issuers may necessitate the fund investing more heavily in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly. The fund may invest significantly in issuers within a particular sector which may be negatively affected by market, economic or other conditions, making the fund more vulnerable to unfavorable developments in the sector. Market or other (e.g., interest rate) environments may adversely affect the liquidity of fund investments, negatively impacting their price. Generally, the less liquid the market at the time the fund sells a holding, the greater the risk of loss or decline of value to the fund. As a non-diversified fund, fewer investments could have a greater effect on performance.
Investors should consider the investment objectives, risks, charges and expenses of a mutual fund carefully before investing. For a free prospectus or a summary prospectus, which contains this and other important information about the funds, visit columbiathreadneedle.com/us. Read the prospectus carefully before investing. Columbia Funds are distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC. Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies.
For advisor use only. Not intended for inspection by, or distribution or quotation to the general public.
For advisor use only. This material is not for inspection by, distribution or quotation to the general public. Investment advisory products and services are made available through Ameriprise Financial Services, Inc., a registered investment adviser. Ameriprise Financial Services, Inc. Member FINRA and SIPC.
Brian Erickson
Investment Research Group
James Dearborn Columbia Threadneedle Investments
For advisor use only. Not intended for inspection by, or distribution or quotation to the general public.
Jon Hale
Morningstar, Inc.
Agenda
Background and Opportunity Approach – Impact and Sustainability Advisor Impact Questions & Answers
For advisor use only. Not intended for inspection by, or distribution or quotation to the general public.
3
Biblically responsible investing (BRI)
Impact investing
Social investing
Sustainable and responsible investing (SRI)
ESG (Environmental, Social, Governance) Investing Values based investing Faith based investing Green investing
Sustainable investing Socially responsible investing (SRI) Socially conscious investing
For advisor use only. Not intended for inspection by, or distribution or quotation to the general public.
Interest in ESG Investing Growth in ESG AUM in the United States ($B) 6,200
3,744 2,169 2,323 2,164 2,290
2,711
Millennials
Female
84%
76%
3,069 Overall
71%
1,185 639 1995 1997 1999 2001 2003 2005 2007 2010 2012 2014 Source: US SIF Report on US Sustainable, Responsible and Impact Investing Trends, 2014 For advisor use only. Not intended for inspection by, or distribution or quotation to the general public.
Source: Sustainable Signals: The Individual Investor Perspective, Morgan Stanley Institute for Sustainable investing, February 2015
Brian Erickson
Investment Research Group
James Dearborn Columbia Threadneedle Investments
For advisor use only. Not intended for inspection by, or distribution or quotation to the general public.
Jon Hale
Morningstar, Inc.
https://www.columbiathreadneedleus.com/investment-products/mutual-funds/Columbia-U.S.Social-Bond-Fund/Class-A/details?cusip=19767A803#strategy-benefits
For advisor use only. Not intended for inspection by, or distribution or quotation to the general public.
7
• The Rating is a category-relative measure of the sustainability performance of companies held in a portfolio
• Sustainability performance = how well companies are managing their ESG risks and opportunities • Applies to all funds, globally • Based on quality ESG research
• Part of broader Morningstar Sustainable Investing initiative For advisor use only. Not intended for inspection by, or distribution or quotation to the general public.
Brian Erickson
Investment Research Group
James Dearborn Columbia Threadneedle Investments
For advisor use only. Not intended for inspection by, or distribution or quotation to the general public.
Jon Hale
Morningstar, Inc.
1. Make a list of clients who you think may be interested in this strategy Examples of clients that this may resonate with:
•
Younger investors and millennials who are more aware of global/ESG issues
•
Individuals working in or exposed to ESG or related fields/industries (e.g. social workers, non-profits, professors/educators, etc.)
•
Women clients
•
Clients with deep religious convictions
2. Get Familiar with the Resources Available Examples of resources available •
Advisor Compass
•
SRI whitepapers
•
Sustainable & Responsible Investing (SRI) portfolio list in the Equity team’s Focus List Investment Strategies For advisor use only. Not intended for inspection by, or distribution or quotation to the general public.
Social impact investing may increase risk due to the limitations and constraints involved in investment selection and, as a result, the fund may underperform other funds that do not consider the social impact. This information is being provided only as a general source of information, and is not a solicitation to buy or sell the securities mentioned. The information is not intended to be used as the sole basis for investment decisions, nor should it be construed as advice designed to meet the particular needs of an individual investor. Ameriprise Financial Services, Inc., Member FINRA and SIPC Investment risks — Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. Social impact investing may increase risk due to the limitations and constraints involved in investment selection and, as a result, the fund may underperform other funds that do not consider the social impact. Fixed-income securities present issuer default risk. A rise in interest rates may result in a price decline of fixed-income instruments held by the fund, negatively impacting its performance and NAV. Falling rates may result in the fund investing in lower yielding debt instruments, lowering the funds income and yield. These risks may be heightened for longer maturity and duration securities. Non-investmentgrade (high-yield or junk) securities present greater price volatility and more risk to principal and income than higher rated securities. Prepayment and extension risk exists as a loan, bond or other investment may be called, prepaid or redeemed before maturity and that similar yielding investments may not be available for purchase. The fund invests substantially in municipal securities and will be affected by tax, legislative, regulatory, demographic or political changes, as well as changes impacting a states financial, economic or other conditions. A relatively small number of tax-exempt issuers may necessitate the fund investing more heavily in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly. The fund may invest significantly in issuers within a particular sector which may be negatively affected by market, economic or other conditions, making the fund more vulnerable to unfavorable developments in the sector. Market or other (e.g., interest rate) environments may adversely affect the liquidity of fund investments, negatively impacting their price. Generally, the less liquid the market at the time the fund sells a holding, the greater the risk of loss or decline of value to the fund. As a non-diversified fund, fewer investments could have a greater effect on performance.
Investors should consider the investment objectives, risks, charges and expenses of a mutual fund carefully before investing. For a free prospectus or a summary prospectus, which contains this and other important information about the funds, visit columbiathreadneedle.com/us. Read the prospectus carefully before investing. Columbia Funds are distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC. Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies.
For advisor use only. Not intended for inspection by, or distribution or quotation to the general public.
