Triple Bottom Line Investment and High Net Worth Wealth Management


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Erol Bilecen, Head Client Services Sustainable Investment - Bank Sarasin & Co. Ltd - Switzerland

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Triple Bottom Line Investment and High Net Worth Wealth Management

  1. 1. Tripple Bottom Line Investment and High Net Worth Wealth Management Erol Bilecen Head Client Services Sustainable Investment TBLI Conference Europe, Amsterdam, November 12, 2009 Sustainable Swiss Private Banking since 1841.
  2. 2. Sarasin Sustainable Investment: Bank Sarasin & Co Ltd. – a highly regarded Swiss private bank Swiss Private Bank, founded in 1841 Specialised in asset management and private banking CHF 79,9 billion / EUR 52,4 billion of assets-under- management More than 1’500 employees Headquarters in Basel Offices in Berne, Geneva, Lugano, Zurich, Delhi, Dubai, Dublin, Frankfurt, Guernsey, Hong Kong, Qatar, La Coruña, London, Madrid, Mumbai, Munich, Nuremberg, Oman, Singapore, Warsaw, Vienna Rabobank (Standard & Poors* rating: AAA) is the majority shareholder with a 46% stake in its equity capital and 69% of its voting rights As per 30 June 2009 *Standard & Poors issues credit ratings of corporations: AAA is the best rating and denominates reliable and stable borrowers TBLI Conference Amsterdam 2009 November 12, 2009 2
  3. 3. Bank Sarasin – Developing innovative SRI investment concepts 1989 First asset management mandates defined by ecological criteria 1994 Bank Sarasin launches the world’s first eco-efficiency fund, which invests globally in sustainable corporate bonds and equities 1998 The sustainability methodology is extended beyond the environmental focus to include an extensive range of social issues 1998 Our capability is expanded to include the active management of sustainable themes from a small & mid-cap stock universe 2000 Formation of a private equity company (New Energies Invest Ltd) 2000 Launch of a Fund with a special focus on renewable energy and energy efficiency 2003 Extension of routine sustainability analysis to countries and public financial institutions 2006 Implementation of sustainable mandates for private clients and managed fund portfolios 2008 Implementation of further successful investment concepts: sustainable water fund, certificates on various sustainability themes, sustainable fund-of-funds, etc. 2009 Switch of all Private client mandates in Switzerland to sustainability TBLI Conference Amsterdam 2009 November 12, 2009 3
  4. 4. Eurosif-study 2008 „The study shows that HNWIs are open to new and alternative sustainable investments. Eurosif believes that servicing the HNWI segment offers great opportunities for product innovation which could eventually prove useful for other investor segments such as institutional investors. (…) To effectively service this quickly growing market, Eurosif believes the following are essential: A clear understanding of HNWI investors’ motives around sustainable investment, in order to develop or find the proper financial products that share and reflect their concerns. Demonstrable examples of market rate performance to convince HNWI clients that sustainable investment can perform as well as other traditional investments. Improved information and education on sustainable investment for the HNWI and wealth manager communities. TBLI Conference Amsterdam 2009 November 12, 2009 4
  5. 5. Eurosif-study 2008: Results (I) TBLI Conference Amsterdam 2009 November 12, 2009 5
  6. 6. Eurosif-study 2008: Results (II) TBLI Conference Amsterdam 2009 November 12, 2009 6
  7. 7. EIRIS/Wealth Briefing-study (2009) Key findings: 90% of wealth managers responding to the survey said that their RI portfolios have performed the same or better than their other portfolios. HNW individuals are now more aware than ever of social, environmental and governance issues and how they might relate to their investments than ever before. The financial crisis has made 30% of respondents more likely and 60% just as likely to offer RI to their clients. 55% of wealth managers are more likely this year to look at governance and impending regulatory issues in their clients' portfolios. Wealth managers identified a lack of clarity and information on performance as a key barrier to implementing bespoke RI solutions for their clients. Most HNW individual interest in RI is from the entrepreneurial community. HNW individuals are increasingly moving between wealth managers, making client retention challenging. 70% of wealth managers' clients see a clear link between their philanthropic activity and investing in line with their philanthropic goals. EIRIS/Wealth Briefing/Kleinwort Benson (2009): „Responsible Investment and Wealth Management: Opportunities for the future“„ TBLI Conference Amsterdam 2009 November 12, 2009 7
  8. 8. Bank Sarasin‘s move and some (preliminary) results Sustainable Investment a business case for the last 20 years (NOT opportunistic!) August 2008: New by-line „Sustainable Swiss Private Banking since 1841” December 2008: Decision to switch the portfolio management mandates of private clients in Switzerland to a sustainable investment style January-June 2009: Implementation of switch: Setup of new processes, new information flows, new organisation The number of mandates managed purely according to sustainable principles rose by 44%, while the associated volumes climbed by as much as 65% Number of clients explicitly opting out: <<5% As per 30 June 2009 TBLI Conference Amsterdam 2009 November 12, 2009 8
  9. 9. Further results (I): Asset-under-management 7000 35 6000 30 5000 25 4000 20 3000 15 2000 10 1000 5 0 0 09 02 99 03 00 01 04 98 08 05 07 06 20 20 19 20 20 20 20 19 20 20 20 20 6. .0 Sustainable Assets in Mio EUR 30 Sustainable Assets as Percentage of all assets that Sarasin manages through asset management mandates and its own investment funds (right scale) Assets managed according to sustainable principles exceed CHF 10 billion (EUR 6.6bn) for the first time Increase of 68% of assets under sustainability management in the first half of the year As per 30 June 2009 TBLI Conference Amsterdam 2009 November 12, 2009 9
  10. 10. Further results (II): Performance Performance CHF Mandates 2009 As per 31/10/2009 in % 20% 20% Cumulated Performance 2009 15% 15% Performance monthly 10% 10% 5% 5% 0% 0% -5% -5% -10% -10% 01/09 02/09 03/09 04/09 05/09 06/09 07/09 08/09 09/09 10/09 Defensive monthly Balanced monthly Dynamic monthly Defensive 2009 Balanced 2009 Dynamic 2009 Defensive Balanced Dynamic Performance CHF Mandates 2009 6,71% 9,51% 12,64% TBLI Conference Amsterdam 2009 November 12, 2009 10
  11. 11. Further Results (III): Outside Perception Commenting on the two Global Private Banking Awards presented to Bank Sarasin, Yuri Bender, Editor-in-Chief of Professional Wealth Management, said: "The jury was greatly impressed by Sarasin’s submission. Both the awards – for innovation and portfolio management – reflect the bank's unique approach to sustainability and its commitment to integrating environmental, social and governance principles into its investment strategy and management culture." TBLI Conference Amsterdam 2009 November 12, 2009 11
  12. 12. Legal disclaimer This Document was produced by Bank Sarasin & Co. Ltd (hereafter „bank“) with the greatest of care and to the best of its knowledge and belief. However, the bank provides no guarantee with regard to its content and completeness and does not accept any liability for losses which might arise from making use of this information. The opinions expressed in this document are those of the bank at the time of writing and are subject to change at any time without notice. If nothing is indicated to the contrary, all figures are unaudited. This document is provided for information purposes only and is for the exclusive use of the recipient. It does not constitute an offer or a recommendation to buy or sell financial instruments or banking services and does not release the recipient from exercising his/her own judgment. The recipient is in particular recommended to check that the information provided is in line with his/her own circumstances with regard to any legal, regulatory, tax or other consequences, if necessary with the help of a professional advisor. This document may not be reproduced either in part or in full without the written permission of the bank. It is expressly not intended for persons who, due to their nationality or place of residence, are not permitted access to such information under local law. Every investment involves risk, especially with regard to fluctuations in value and return. It should be noted that historical returns and financial market scenarios are no guarantee of future performance. Investments in foreign currencies involve the additional risk that the foreign currency might lose its value against the investor‘s reference currency. The investment funds mentioned in this publication are domiciled in Luxembourg. They are represented in Switzerland through Bank Sarasin & Co. Ltd, Basle. The paying agent in Switzerland is Bank Sarasin & Co. Ltd, Basle. Subscriptions are only valid on the basis of the current sales prospectus and the most recent annual report (or half-yearly report, if this is more recent). The prospectus, the simplified prospectus, the management regulations and the annual and half-yearly reports may be obtained free of charge from Bank Sarasin & Co Ltd, Basle and from all other branches of Bank Sarasin & Co. Ltd. ® 2009 Copyright by Bank Sarasin & Co. Ltd TBLI Conference Amsterdam 2009 November 12, 2009 12
  13. 13. Your contact: Erol Bilecen Bank Sarasin & Co. Ltd Elisabethenstrasse 62 4002 Basel Switzerland Tel.: +41 (0)61 277 75 62 Fax: +41 (0)61 277 76 88 E-mail: URL: Sustainable Swiss Private Banking since 1841.