Dow Jones Sustainability Indexes A cooperation of Dow Jones Indexes, STOXX Ltd. and SAM Kathelijne  Marritt Alers  May 2010
Content <ul><ul><ul><li>SAM - Insights </li></ul></ul></ul><ul><ul><ul><li>Sustainability Investing – Market Developments ...
SAM at a Glance <ul><li>Investment boutique  focused exclusively on Sustainability Investing since 1995 </li></ul><ul><li>...
<ul><li>Focus:  Exclusive focus on exploiting sustainability foresight </li></ul><ul><li>Methodology:  Leading, proprietar...
Sustainability Investing Integration Engagement Sustainability  Theme  Investing Best  in Class <ul><li>Integration  aims ...
Key Facts – SAM Credentials … Source: UN PRI Report on Progress 2009.  Source: AkzoNobel Press Release
Sustainability Investing – Market Developments Source: Robeco/Booz: Responsible Investing: A Paradigm Shift. From Niche to...
SAM Research % Total Industry   Criteria General Criteria Social  Dimension Environmental  Dimension Economic  Dimension 5...
Key Facts – SAM Indexes <ul><ul><ul><li>Cooperation with Dow Jones Indexes and STOXX for the publication and  licensing of...
Dow Jones Sustainability Indexes (DJSI) <ul><ul><ul><li>Integrated assessment of  economic, environmental  and  social cri...
DJSI Assets Assets based on DJSI (in million USD)
DJSI Licensees as of April 30, 2010
DJSI World – Index Range 308  Components DJSI World ex Alcohol 315  Components DJSI  World ex Tobacco 302  Components DJSI...
DJSI World – Selection Dow Jones Global Total Stock Market Index 2,500 largest companies 57 DJSI sectors 51 countries Comp...
DJSI World – Performance Since Launch, 08/99 – 04/10 (USD, Total Return)
DJSI Asia Pacific – Index Range 40  Components DJSI Japan 40 40 Components DJSI Asia Pacific 40 109 Components DJSI Asia P...
DJSI Asia Pacific – Selection Dow Jones Global Total Stock Market Index 600 largest companies from the developed Asia Paci...
DJSI Asia Pacific – Performance Since Launch, 01/09 – 04/10 (USD, Total Return)
DJSI Asia Pacific 40 – Selection DJSI Asia Pacific 130 Components  Sustainabilitly Leaders of the developed Asia Pacific c...
DJSI Asia Pacific 40 – Performance 09/08 – 04/10 (USD, Total Return)
DJSI Japan 40 – Selection DJSI Asia Pacific 130 Components  Sustainabilitly Leaders of the developed Asia Pacific countrie...
DJSI Japan 40  –  Performance 09/08 – 04/10 (USD, Total Return)
SAM Indexes SAM Indexes Josefstrasse 218 8005 Zurich Switzerland Phone: +41 44 653 1803 Fax: +41 44 653 1810 E-Mail: index...
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Sustainability Indexes - Rising Interest in Asia

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Kathelijne Marritt Alers, Regional Director - SAM Indexes - Switzerland

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  • Main Message: Introduce SAM, provide some facts &amp; figures Description: SAM Sustainable Asset Management (SAM) was founded in 1995 as an assetmanagement company exclusively focused on sustainability investments. Today, the company ranks among the leading investment groups worldwide in this field of expertise. SAM has consistently asserted its role as a pioneer in sustainability investing by developing innovative investment solutions. Its recent expansion in the field of alternative investments represents a further step in reinforcing SAM’s powerful market position. Integrating industry-specific sustainability criteria into a traditional valuation methodology is the cornerstone of SAM’s investment philosophy. SAM’s know-how is based on its proprietary, independent research methodology and an active, international network of sustainability experts. Together with Dow Jones Indexes, SAM developed the globally recognized Dow Jones Sustainability Indexes (DJSI). Within the scope of this collaboration, SAM has compiled one of the world’s largest sustainability databases and analyzes more than 1,000 listed companies every year. Notes: - Robeco owns 64% of the SAM sharecapital. The rest is owned by the management and the employees. (Standard / bi-annual update / Information Services)
  • The ONE point to take home: The investment process is well-structured, consequently applied and responsibilities are clearly assigned. Purpose of single investment process steps is explained in the following slides. Responsibilities of single investment process steps are as follows: Macro Research: Analyst Investment Universe Construction: Analyst, in close coordination with PM Corporate Sustainability Analysis: Analyst Company Valuation: Analyst, in close coordination with PM Portfolio Construction: Portfolio Manager, in close coordination with PM Portfolio Implementation: Portfolio Manager Formal meetings between PM &amp; Analysts on a weekly basis to discuss macro research, investment universe; discuss updated company valuations ; discuss portfolio portfolio &amp; stock performance Formal meetings between PM &amp; Analysts on a weekly basis to discuss NEW company valuation . Informal meetings and ongoing communication flow is enabled by same floor offices. Performance measurement: Analyst performance is measured against investment universe. Portfolio performance is measured against peer fund performance
  • Economic (interconnectivity, deregulation, accountability, innovation speed, ageing infrastructure, board mgmt) Environmnet (Climate Change, Biodiversity, Scarcity of natural resources) Social (demographic chnages, urbanization, social tensions, health, transparency) Analyze 57 sectors Look at 130 criterias
  • Sustainability Indexes - Rising Interest in Asia

    1. 1. Dow Jones Sustainability Indexes A cooperation of Dow Jones Indexes, STOXX Ltd. and SAM Kathelijne Marritt Alers May 2010
    2. 2. Content <ul><ul><ul><li>SAM - Insights </li></ul></ul></ul><ul><ul><ul><li>Sustainability Investing – Market Developments </li></ul></ul></ul><ul><ul><ul><li>SAM Research </li></ul></ul></ul><ul><ul><ul><li>Dow Jones Sustainability Indexes </li></ul></ul></ul><ul><ul><ul><li>Theme Indexes </li></ul></ul></ul>
    3. 3. SAM at a Glance <ul><li>Investment boutique focused exclusively on Sustainability Investing since 1995 </li></ul><ul><li>Offering complementary capabilities of Sustainability Investing </li></ul><ul><li>Integration of ESG criteria in company valuation </li></ul><ul><li>Powering Dow Jones Sustainability Indexes since 1999 </li></ul><ul><li>Member of Robeco (part of AAA-rated Rabobank Group) </li></ul><ul><li>EUR 10.3 billion total assets (as per 31.12.2009) </li></ul><ul><li>Servicing a global and diversified client base </li></ul><ul><li>Approx. 100 employees based in Zurich, Switzerland </li></ul>
    4. 4. <ul><li>Focus: Exclusive focus on exploiting sustainability foresight </li></ul><ul><li>Methodology: Leading, proprietary research methodology </li></ul><ul><li>Experience: In-depth knowledge in sustainability investing since 1995 </li></ul><ul><li>Database: One of the world‘s largest databases on corporate sustainability </li></ul><ul><li>People: Unique, cross-disciplinary investment team with financial and scientific background </li></ul>Sustainability foresight Understand and interpret the business case Long-term outstanding investment results SAM’s Core Competences Leading in translating sustainability foresight into outstanding investment results
    5. 5. Sustainability Investing Integration Engagement Sustainability Theme Investing Best in Class <ul><li>Integration aims to incorporate EES factors into the investment decision-making process </li></ul><ul><li>Best-in-Class is an investment approach based on selecting the sustainability leaders </li></ul><ul><li>Sustainability Theme Investing is focused on companies providing solutions for global trends </li></ul><ul><li>Engagement entails entering into an active dialogue with companies on important EES issues </li></ul>Sustainability Investing means striving to achieve enhanced risk return profiles by also considering Economic, Environmental and Social (EES) criteria Sustainability Investing by SAM
    6. 6. Key Facts – SAM Credentials … Source: UN PRI Report on Progress 2009. Source: AkzoNobel Press Release
    7. 7. Sustainability Investing – Market Developments Source: Robeco/Booz: Responsible Investing: A Paradigm Shift. From Niche to Mainstream. RI=Responsible Investing
    8. 8. SAM Research % Total Industry Criteria General Criteria Social Dimension Environmental Dimension Economic Dimension 57% 33% 20% 100% 43% 33% 33% Actual weightings for the economic, environmental and social dimension may differ between industry groups to reflect the sector’s specific exposure to certain sustainability trends. The graph above is illustrative of the approximate weightings. Assessment Criteria
    9. 9. Key Facts – SAM Indexes <ul><ul><ul><li>Cooperation with Dow Jones Indexes and STOXX for the publication and licensing of the Dow Jones Sustainability Indexes (DJSI). Launch in 1999. </li></ul></ul></ul><ul><ul><ul><li>Broad family of DJSI benchmarks including Global, European, Eurozone, North American, US, Asia Pacific, and Japanese indexes. </li></ul></ul></ul><ul><ul><ul><li>Over 8 billion USD in DJSI-based investment vehicles. </li></ul></ul></ul><ul><ul><ul><li>Compiling the Australian SAM Sustainability Index (AuSSI) and further customized theme indexes (e.g. World Water Index, World Solar Energy Index ) </li></ul></ul></ul><ul><ul><ul><li>Launched the DJSI Korea in partnership with the Korea Productivity Centre in October 2009. </li></ul></ul></ul>
    10. 10. Dow Jones Sustainability Indexes (DJSI) <ul><ul><ul><li>Integrated assessment of economic, environmental and social criteria with a strong focus on long-term shareholder value. </li></ul></ul></ul><ul><ul><ul><li>Consistent rules-based methodology , primary research (direct contact to companies). </li></ul></ul></ul><ul><ul><ul><li>Focus on best-in-class companies. Yearly review and continuous monitoring of companies. </li></ul></ul></ul><ul><ul><ul><li>Assurance of the assessment process by Deloitte . </li></ul></ul></ul>Overview
    11. 11. DJSI Assets Assets based on DJSI (in million USD)
    12. 12. DJSI Licensees as of April 30, 2010
    13. 13. DJSI World – Index Range 308 Components DJSI World ex Alcohol 315 Components DJSI World ex Tobacco 302 Components DJSI World ex Gambling 313 Components DJSI World ex Armaments & Firearms 287 Components DJSI World ex Alcohol, Tobacco, Gambling, Armaments & Firearms 279 Components DJSI World ex Alcohol, Tobacco, Gambling, Armaments & Firearms, Adult Entertainment 80 Components DJSI World 80 266 Components DJSI World ex US 80 Components DJSI World ex US 80 317 Components DJSI World
    14. 14. DJSI World – Selection Dow Jones Global Total Stock Market Index 2,500 largest companies 57 DJSI sectors 51 countries Component Selection Top 10% of companies in terms of sustainability in each DJSI sector 15% target market cap coverage in each supersector 317 Components 57 DJSI sectors 27 countries Annual Review 09: 33 Adds (9.2% of mcap), 33 Deletes (3.5% of mcap) DJSI World
    15. 15. DJSI World – Performance Since Launch, 08/99 – 04/10 (USD, Total Return)
    16. 16. DJSI Asia Pacific – Index Range 40 Components DJSI Japan 40 40 Components DJSI Asia Pacific 40 109 Components DJSI Asia Pacific ex Alcohol, Tobacco, Gambling, Armaments & Firearms 130 Components DJSI Asia Pacific
    17. 17. DJSI Asia Pacific – Selection Dow Jones Global Total Stock Market Index 600 largest companies from the developed Asia Pacific countries 43 DJSI clusters Component Selection Top 20% of companies in terms of sustainability in each DJSI sector 45% target market cap coverage in each super sector 130 Components 39 DJSI clusters DJSI Asia Pacific Annual Review 09: 21 Adds (14.1% of mcap), 13 Deletes (9.2% of mcap)
    18. 18. DJSI Asia Pacific – Performance Since Launch, 01/09 – 04/10 (USD, Total Return)
    19. 19. DJSI Asia Pacific 40 – Selection DJSI Asia Pacific 130 Components Sustainabilitly Leaders of the developed Asia Pacific countries Component Selection Largest 40 components out of the DJSI Asia Pacific (maximum 5 per super sector) 40 components weighted by sustainability score DJSI Asia Pacific 40
    20. 20. DJSI Asia Pacific 40 – Performance 09/08 – 04/10 (USD, Total Return)
    21. 21. DJSI Japan 40 – Selection DJSI Asia Pacific 130 Components Sustainabilitly Leaders of the developed Asia Pacific countries Component Selection Largest 40 Japanese components out of the DJSI Asia Pacific (maximum 5 per super sector) 40 components weighted by sustainability score DJSI Japan 40
    22. 22. DJSI Japan 40 – Performance 09/08 – 04/10 (USD, Total Return)
    23. 23. SAM Indexes SAM Indexes Josefstrasse 218 8005 Zurich Switzerland Phone: +41 44 653 1803 Fax: +41 44 653 1810 E-Mail: indexes@sam-group.com www.sam-group.com, www.sustainability-indexes.com
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