Transcript Overview Presentation

overview
October 2007
presentation
objectives
• To provide private and institutional investors with
a family of mutual funds that have Judeo-Christian
values and outstanding financial results.
• To give means for investors to invest in a socially
responsible way that may include a social
distribution of the funds’ profits.
2
suitable investors
• Ethical and Christian values-conscious investors
• Religious congregations & foundations
• Christian charities and not-for-profits
• Savings plans for ethics-conscious organizations
3
a unique offer
Proven Investment Track Record
Pictet’s investment approach guarantees a thorough review of each company’s
fundamental economic and market conditions.
Judeo-Christian Values
The fund has a restricted universe of investment possibilities that have passed
the screening of a research team of the Westchester Institute partnered with
other universities.
Social Distribution
The fund may donate part of the yearly return to nonprofit institutions, if the
return is over the year’s benchmark.
Certificate of Ethical Compliance
An ethics counsel grants a certificate based on the criteria defined by the
Westchester Institute and one of its partners, the Pontifical Athenaeum Regina
Apostolorum.
4
strategic partners
• Pictet & Cie is the custodian bank, central
administrator, promoter, and investment manager.
• The Westchester Institute For Ethics and the
Human Person supplies ethical screening services
for the fund.
5
Pictet & Cie
•
•
•
Founded in 1805 in Geneva, Pictet & Cie is
today one of Europe’s largest private banks, and
one of the premier independent asset
management specialists in Europe, with over 200
billion euros in assets under management and
custody.
The Pictet Group is an asset management
specialist focused mainly on the following areas
of expertise: private and institutional asset
management, fund administration and
management, global custody and family office
services.
Pictet has more than 2,500 employees
worldwide.
6
The Westchester
Institute
•
•
THE WESTCHESTER
INSTITUTE
FOR ETHICS
AND THE HUMAN
PERSON
•
•
Founded in 1998 to renew, deepen, and promote
the Western tradition of moral reflection.
Pursues its objectives in cultural, political,
business, and academic settings.
Seeks to reinvigorate contemporary moral
discourse on all levels through seminars, lecture
series, research and consulting.
Engages in fundamental philosophical research,
applied research on contemporary moral issues,
public policy analysis, and business ethics
questions.
7
Judeo-Christian
ethical criteria
Ethical Criteria
In order to provide an investment universe for the fund, the Westchester
Institute and its partners have designed a proven methodology for analyzing
companies that do not comply with the defined criteria.
This methodology is composed of questions which pertain to violations of human
dignity or practices which seriously undermine healthy family and social life.
In the future WI will also offer positive screening.
The research determines if the company’s products or practices are related to:
•
•
•
•
•
•
•
•
•
Violence to Human Life
Workers’ Rights Violations
Arms Trade
Pornography
The Abusive Marketing of Alcohol, Tobacco and Gambling
Environmental Abuse
Fraud
Promotion of Unchristian Ideals
Complicity with Government Injustice
8
certificate of
ethical compliance
The ethics counsel reviews and certifies the fund every six
months.
Experts review the fund’s positions based on a methodology
and criteria developed by:
• The Westchester Institute
for Ethics and the Human Person
www.westchesterinstitute.net
• The Pontifical Athenaeum
Regina Apostolorum
www.upra.org
9
partnerships
The Westchester Institute has partnered with well-known
institutions to define its criteria and continuously research
ethical issues:
– Pontifical Athenaeum Regina Apostolorum in Rome
– Francisco de Vitoria University in Spain
– Anahuac Network of Universities in Mexico
– European University of Rome in Italy
– Management Institute of Paris in France
– Lumen Institute in New York City
– Finis Terrae University in Chile
10
ief
•
•
•
•
•
•
•
•
characteristics
Incorporated in Luxembourg
Family of ethical funds (umbrella company)
European Passport, SICAV part 1 – UCITS III
Managed by Pictet & Cie (Geneva)
Will be registered in France, Italy, Germany and
Spain
Limited to 100 US Investors
Auditor: Delloite S.A. (Luxembourg)
Will receive a Certificate of Ethical Compliance
11
value fund:
investment concept
• The fund uses PICTET’s best practice in portfolio
investment through a balance of money market tools,
bonds and equities. Futures, options and other derivative
tools may be used for management of liquidity.
• The fund is a moderate risk vehicle with a value
perspective. It is designed for individual and institutional
investors who want a diversified portfolio with JudeoChristian ethical guidelines, as established by the
Westchester Institute.
12
value fund:
investment concept
• We recommend an investment horizon of at least 5
years.
• At most, 45% of the total assets will be invested in
equities and other related securities or participation
rights.
• Tactical allocations (maximum levels):
• 85% fixed income
• 45% equities
13
investment allocation
Strategic Asset Allocation
Expected Return
Equity
Equities
40%
Fixed
Income
60%
Growth
IEF - Value Fund
Balance
Income
Strategic Asset Allocation
Risk
(Currencies)
Euros
40%
USDollar
55%
Others
5%
14
The fund’s objective is
capital growth by strategic
long-term allocation of equity
and fixed income, while taking
opportunities that the market
gives for appreciation of assets
in financial markets.
strategic allocation
and benchmarks
Strategic Allocations:
•
•
•
•
•
35%
25%
20%
15%
5%
Fixed Income N. America
Fixed Income Europe
Equities North America
Equities Europe
Other countries
Investment grade (AAA-BBB)
Investment grade (AAA-BBB)
US and Canada
European Union & the UK
Co’s with international scope
Benchmark:
• 35% - Lehman Bros. Aggregate index (US)
• 25% - Lehman Bros. Aggregate Index Europe
• 40% - MSCI World Index
15
investment performance
(s i m u l a t i o n)
Historic returns (net of fees) of portfolio with values similar to IEF
1.70
1.60
1.50
Index (Dic '01)
1.40
1.30
1.20
1.10
1.00
0.90
2
3
4
5
6
7
2
3
4
5
6
1
2
3
4
5
6
02
03
04
05
06
r-0
r-0
r-0
r-0
r-0
r-0
c -0
c -0
c -0
c -0
c -0
c -0
n-0
n-0
n-0
n-0
n-0
pppppMa
Ju
Ma
Ju
Ma
Ju
Ma
Ju
Ma
Ju
Ma
De
Se
De
Se
De
Se
De
Se
De
Se
De
IEF-Value Fund (similar portf olio)
Based on past performance
(net of fees) of a portfolio
managed by Pictet with the
same criteria as IEF
Benchmark
YTD (May '07)
Past two years
Past five years
Since Inception (May 1998)
16
IEF-Value Fund
(similar portfolio) Benchmark
5.95%
5.03%
10.32%
8.92%
9.69%
7.99%
6.67%
5.25%
value fund facts
SHARE CLASSES
– Class H: share class issued and closed at the launch of the fund (20/06/07)
– Class I / IE: USD and Euro respectively, reserved to institutional investors.
Max of 1.4% management, distribution and custodian fee.
– Class P / PE: USD and Euro respectively, available to all investors. Max of
1.5% management, distribution and custodian fee.
REFERENCE CURRENCY USD and EURO
DIVIDEND POLICY the objective is to achieve capital growth, and so
income is reinvested. No dividends will be distributed.
NAV will be calculated on a weekly basis, each Friday. It will be listed on the
Luxembourg Stock Exchange.
SOCIAL INVESTMENT: the fund may give up to 5% of its annual return
to charitable organizations when the performance (net of fees) exceeds the
benchmark by more than 5%.
17
value fund codes
ISIN Codes
Class H:
Class I/IE:
Class P/PE:
LU0298401992
LU0298402453/LU0307393966
LU0298402437/LU0307395821
Bloomberg Ticker
Class H:
Class I:
Class P:
INTETHH LX
INTETHI LX
INTETHP LX
18
disclaimer
This document is intended solely for the individual(s) to whom it is
presented and may not be reproduced in whole or in part, except to
the client’s professional advisers or with the express written consent of
Integer Ethical Funds.
This document is for information purposes only and does not constitute
a solicitation to buy or sell securities. The information in this report is
confidential. It is not to be reproduced or distributed to any other
person except to the client’s professional advisers.
While information used in this document may have been obtained from
various published and unpublished sources considered to be reliable,
Integer Ethical Funds and its affiliates cannot guarantee its accuracy
or its completeness, and thus do not accept liability for any direct or
consequential losses arising from its use.
This presentation contains information on Funds registered in
Luxembourg. They have not yet been approved for distribution in any
other country, specifically the United States of America and those of
the European Union.
19