Latest Blog: Yellow Flag - 05/10/2022
INVESTMENT MANAGEMENT: MISSION
- WHAT SETS US APARTINNOVATION, SKILL & EXPERIENCE PORTFOLIO MANAGEMENTOUR INVESTMENT PROCESS MISSION RELATED INVESTINGINCORPORATING CLIENT PREFERENCES PERFORMANCEMEASURING OUR SUCCESS
MISSION RELATED INVESTING
Reflecting important client preferences into portfolios.
Angeles is a thought leader in mission-aligned investing. We have been helping our clients incorporate their mission-related goals into their investment portfolios for over 20 years. We partner with our clients to invest in market-rate investment strategies that are values-aligned while fully managed for risk.
At Angeles, consideration of environmental, social, and governance (ESG) factors are fully integrated into our manager due diligence process across all asset classes.
We believe that superior investment results over the long-term go hand in hand with responsible and sustainable practices. We believe it is critical that investment managers integrate ESG analysis into their investment processes, examining companies and management teams through the lens of long-term sustainability. We also examine how investment managers govern themselves, seeking to understand what firms do to reduce their own carbon footprint and how goals and progress are measured and communicated.
WE FULLY INTEGRATE DIVERSITY, EQUITY AND INCLUSION (DEI) CONSIDERATIONS INTO OUR MANAGER RESEARCH
Team and firm diversity are an important part of our analysis of firms and their resources, including understanding how firms are cultivating the diversity and inclusion of their teams.
By being proactive with managers on their ESG and DEI practices, we believe we are a catalyst for positive change in the industry. Angeles asks all managers to provide detailed information on gender and race across their investment team, ownership structure and overall employee count. We go beyond the statistics in seeking to understand managers' commitment to promoting DEI at their firm and within the industry overall; we want to know managers' DEI goals and how they plan to measure and communicate progress. In addition, we press managers on whether and how they engage with the companies where they invest regarding DEI goals and practices.
In managing our own firm, Angeles cultivates and promotes a culture of ethics and social responsibility. We value and foster diversity and inclusion at our firm. We believe a diverse team enables us to make better investment decisions through the rigor that accompanies the input of diverse perspectives, insights, experiences, and ideas. We believe our culture fosters employee well-being and team collaboration, which leads to better investment outcomes.
HIGHLIGHTS OF ANGELES' MRI PROCESS
- ESG analysis is fully integrated across our rigorous manager research process and incorporated into Angeles' proprietary database.
- DEI considerations are fully integrated in our manager research process.
- Angeles' proprietary due diligence questionnaire is extremely comprehensive around ESG, DEI and impact investing. Our manager research process is designed to deliver and demands measureable results from ourselves and the managers where we place client assets.
- Angeles has a Mission Related Investment (MRI) Committee to oversee the execution of our goals in MRI and maintain accountability.
- Angeles uses a framework for a qualitative assessment of managers’ ESG integration and DEI practices and regularly communicates this information to clients.
- Angeles seeks to invest in managers with diverse ownership, leadership and/or investment teams and firms that are committed to improving DEI and ESG integration.
- Angeles has a responsible investing policy and responsible investing is part of our culture.
- Angeles hiring and management practices foster diversity, equity and inclusion.
Because each of our clients are unique in their values and objectives, our MRI work encompasses a broad range of strategies including exclusionary screens of companies with negative attributes, integration of factors that are positive on ESG factors, and investments that are actively engaged with corporate managements or have direct impact on addressing societal issues.
MISSION RELATED INVESTING
Excludes companies that do not align with investor's values
Tilts portfolio toward companies with high ESG measures
Integrates ESG metrics into an investment process qualititatively and quantitatively
Voting proxies and engaging with companies on various ESG issues to effect changes in behavior
Targets a measureable positive and/or environmental impact. Most traction in private markets
Investing in managers and funds with diverse ownership, teams, and/or leadership
WORKING WITH CLIENTS TO DEVELOP MISSION-RELEATED INVESTMENT POLICIES
Angeles assists clients in the development of mission-related investment policies from the initial education phase through implementation.
- Angeles provides initial and ongoing education with our clients. We survey clients to establish initial goals and consensus.
STRATEGY & POLICY DEVELOPMENT
- Angeles partners with its clients to establish and memorialize MRI objectives, mission priorities, and portfolio strategy in a policy document.
- Angeles works with clients to establish structure, accountability, discretion and benchmarks for success. When working with a family foundation or other legal entity, governance is also incorporated into the planning process.
MONITORING, REPORTING & LEARNINGS
- Incorporate ESG issues into investment analysis and decision-making processes.
- Continual learning and reflection to improve outcomes.
- Angeles manages MRI portfolios across asset classes.
- Portfolios represent best in class strategies that align with client values and don’t sacrifice return.
Angeles is a signatory to the United Nations-supported Principles for Responsible Investment (PRI). The PRI is the world’s leading proponent of responsible investment. As a PRI signatory, Angeles is committed to adopting and implementing the six Principles for Responsible Investment.
As part of our on-going commitment of being a sustainable and responsible business, Angeles Investments has partnered with Terrapass, a San Francisco-based group, to offset the carbon produced through our air travel. Angeles Investments purchased offsets for 53 metric tons of CO2, representing our estimated 2019 air travel emissions. Terrapass does this by investing our contribution in a variety of projects across the US, including clean water and renewable energy, such as wind, landfill gas (garbage), and biofuels. Angeles Investments is now listed on the Terrapass website as a partner.
Additionally, this year we were selected to join Confluence Philanthropy, a New York and Oakland-based organization that promotes mission-aligned investing. We continue to engage all of our managers on not only incorporating ESG considerations in their investment process, but to press the companies they own to show commitment and progress toward these goals. We have taken the same approach directly with our managers, requiring that they, too, as businesses, commit to adopting these principles.
CEO Action for Diversity & Inclusion is the largest CEO-driven business commitment to drive measurable action and meaningful change in advancing diversity, equity and inclusion in the workplace.
We strive build portfolios of best-in-class investment managers across all asset classes. If you would like to be considered for our portfolios, please contact us using our manager inquiries form.
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