Parametric TABS 5-To-15 Year Laddered Municipal Bond Fund Class C · NASDAQ:ECLTX
Parametric TABS 5-To-15 Year Laddered Municipal Bond Fund Class C — Parametric Portfolio Associates — Investor Presentation (November 2011)
39 slides from Parametric TABS 5-To-15 Year Laddered Municipal Bond Fund Class C's investor presentation, November 2011
Slide 1: Your Mission, Your Values, Your Portfolio
Your Mission, Your Values, Your Portfolio 3rd Quarter 2011
Slide 2: About Parametric
About Parametric Founded in 1987—Based in Seattle, WA Majority-owned subsidiary of Eaton Vance Corp Significant management ownership $37.4 billion in assets managed as of 9/30/2011* 30 investment professionals Leaders in structured portfolio management – focused on risk, cost, and customiz
Slide 3: Values and Investing
Values and Investing The Many (New) Definitions of Responsibility Introduction & Exclusionary Custom ESG SRI Proxy ESG Index Appendix Definitions Screens Portfolio Voting Copyright ©2011 Parametric Portfolio Associates LLC. CONFIDENTIAL. For Informational Purposes Only; Not An Offer to Buy or Sell S
Slide 4: ESG and SRI
ESG and SRI Environmental, Social, and Governance (ESG) ESG investing seeks to identify companies that are better managed, have less risk in their business and may deliver better financial performance over the long run due to strong overall environmental, social, and governance factors. “The price
Slide 5: Balancing Returns and Values
Balancing Returns and Values In the past, it has been difficult to achieve risk and return objectives while incorporating investor social values. Goal: Reflect values in investments Return Objectives Social Values Goal: Highest risk- adjusted return Introduction & Exclusionary Custom ESG SRI Proxy E
Slide 6: Implementing ESG with Parametric
Implementing ESG with Parametric A customized Parametric portfolio allows investors to track desired standard indexes or custom ESG indexes while incorporating their values. Separate accounts allow customization and tax management Standard equity benchmarks are available through low-cost & trans
Slide 7: Your Values, Your Mission, Your Portfolio
Your Values, Your Mission, Your Portfolio Parametric works with leading social research firms to provide socially responsible investment solutions delivered through customized separate accounts. “The joy and effectiveness State of the Art Social Research of capitalism is its diversity. Investors can
Slide 8: Choosing the Right Solution
Choosing the Right Solution Client’s Expressed Concern Solution "I want to avoid investing in companies whose activities I find Exclusionary Screens either unethical or irresponsible." "I need an ESG/SRI portfolio tailored to my specific Custom ESG Portfolio preferences." "I want to track an index w
Slide 9: Exclusionary Screens
Exclusionary Screens Introduction Exclusionary Custom ESG SRI Proxy ESG Index Appendix & Definitions Screens Portfolio Voting Copyright ©2011 Parametric Portfolio Associates LLC. CONFIDENTIAL. For Informational Purposes Only; Not An Offer to Buy or Sell Securities page 9
Slide 10: Exclusionary Screens
Exclusionary Screens Partnership of Experienced Providers Parametric – leader in customized index-based portfolios MSCI ESG Research – leader in socially responsible investment screens Portfolio Structure Passive, index-based Separate account, customized to investor specifications Key Benefi
Slide 11: Understanding Social Screens
Understanding Social Screens Implementation with Screened Portfolios MSCI Screens Abortion Adult Entertainment Alcohol Animal Welfare Contraceptives Firearms Gambling Military/Weapons Nuclear Sudan Tobacco Universe Global publicly-traded universe of over 55,000 tickers Broad
Slide 12: Risk Characteristics of Screened Benchmarks
Risk Characteristics of Screened Benchmarks As of 1/31/2011 Tracking Error vs. S&P 500 Tracking error is a statistical Screens measure that predicts how Alcohol 0.5 closely a portfolio is expected to mimic or "track" its benchmark. In building a tax-efficient Gambling 0.4 portfolio, it is often neit
Slide 13: ESG Index
ESG Index Introduction Exclusionary Custom ESG SRI Proxy ESG Index Appendix & Definitions Screens Portfolio Voting Copyright ©2011 Parametric Portfolio Associates LLC. CONFIDENTIAL. For Informational Purposes Only; Not An Offer to Buy or Sell Securities page 13
Slide 14: MSCI ESG Indexes
MSCI ESG Indexes MSCI ESG Indexes are the continuation of indexes developed over the past 20 years by KLD Research & Analytics, which became part of MSCI following its acquisition of RiskMetrics in 2010. “One of the key challenges for the development of the Indexes are created by applying data from
Slide 15: MSCI ESG Indexes Overview
MSCI ESG Indexes Overview The MSCI ESG Indexes are grouped into three main categories. Category Key Attributes MSCI ESG Index MSCI Parent Index World ESG Index (GSIN) Relevant Integrate sustainability World ex-US ESG Index (GSXU) components of analysis into the index construction process MSCI World
Slide 16: MSCI ESG Indexes
MSCI ESG Indexes Parametric offers various MSCI ESG Indexes under a licensing agreement with MSCI. 1 Benchmark availability and account minimums will vary with custody and trading platforms/programs. 2This is a licensing fee that is passed through to MSCI. Introduction & Exclusionary Custom ESG SRI
Slide 17: MSCI KLD 400 Composite Performance
MSCI KLD 400 Composite Performance BENCHMARK: MSCI KLD 400 INCEPTION: July 1999 *See page 33 for disclosures Introduction & Exclusionary Custom ESG SRI Proxy ESG Index Appendix Definitions Screens Portfolio Voting Copyright ©2011 Parametric Portfolio Associates LLC. CONFIDENTIAL. For Informational P
Slide 18: MSCI ESG Index Series Descriptions
MSCI ESG Index Series Descriptions MSCI KLD 400 Social (KLD400) The MSCI KLD 400 Social Index includes 400 (large, mid and small capitalization) companies with high ESG ratings relative to the constituents in the MSCI USA Investable Market Index, while maintaining sector weights similar to the MSCI
Slide 19: MSCI ESG Index Series Descriptions
MSCI ESG Index Series Descriptions USA ESG (USSLM) The MSCI USA ESG Index is a free float-adjusted market capitalization weighted index designed to provide exposure to companies that have high Environmental, Social and Governance (ESG) performance. The MSCI USA ESG Index aims to target sector weight
Slide 20: MSCI ESG Index Series Descriptions
MSCI ESG Index Series Descriptions North America ESG (NASI) The MSCI North America ESG Index is a free float-adjusted market capitalization weighted index designed to provide exposure to companies that have high Environmental, Social and Governance (ESG) performance. The MSCI North America ESG Index
Slide 21: NASDAQ Green Indexes
NASDAQ Green Indexes NASDAQ OMX is the first indexer to offer a complete family of indexes tracking the growing environmental and clean-energy sector, also known as the ‘Green Economy’. NASDAQ OMX Green Economy Global Benchmark Index The NASDAQ OMX Green Economy Global Benchmark Index tracks a large
Slide 22: NASDAQ Green Indexes
NASDAQ Green Indexes NASDAQ OMX® Clean Edge® Smart Grid Infrastructure Index The NASDAQ OMX Clean Edge Smart Grid Infrastructure Index is designed to act as a transparent and liquid benchmark for the smart grid and electric infrastructure sector. The index includes companies that are primarily engag
Slide 23: Custom ESG Portfolio
Custom ESG Portfolio Introduction Exclusionary Custom ESG SRI Proxy ESG Index Appendix & Definitions Screens Portfolio Voting Copyright ©2011 Parametric Portfolio Associates LLC. CONFIDENTIAL. For Informational Purposes Only; Not An Offer to Buy or Sell Securities page 23
Slide 24: Custom ESG Strategy Development
Custom ESG Strategy Development Parametric partners with IW Financial to create and implement sophisticated values- based investment strategies based on objective environmental, social and governance (ESG) research. • Identify desired market segments • Determine values characteristics • Determine va
Slide 25: Evolving Evaluative Methodologies
Evolving Evaluative Methodologies New research and methodologies have added flexibility and sophistication to the evaluative process. IW Financial’s research and analytics enable both historical and next generation approaches. Historical Approach Next Generation Compliance Negative, Positive Data Co
Slide 26: Customized ESG Portfolio Implementation
Customized ESG Portfolio Implementation Client Benchmark Specific Portfolio Selection Inputs Construction Parametric works with The social conversation with A customized portfolio is advisor and/or client, who the client translates values built to be in alignment with chooses an appropriate in
Slide 27: Customized IW Financial Client Questionnaire
Customized IW Financial Client Questionnaire Introduction & Exclusionary Custom ESG SRI Proxy ESG Index Appendix Definitions Screens Portfolio Voting Copyright ©2011 Parametric Portfolio Associates LLC. CONFIDENTIAL. For Informational Purposes Only; Not An Offer to Buy or Sell Securities page 27
Slide 28: SRI Proxy Voting
SRI Proxy Voting Introduction Exclusionary Custom ESG SRI Proxy ESG Index Appendix & Definitions Screens Portfolio Voting Copyright ©2011 Parametric Portfolio Associates LLC. CONFIDENTIAL. For Informational Purposes Only; Not An Offer to Buy or Sell Securities page 28
Slide 29: Socially Responsible Proxy Voting
Socially Responsible Proxy Voting Rather than subscribing to Parametric’s standard proxy voting policy, clients can choose a customized socially responsible proxy voting policy. Proxy voting is the primary means by which shareholders are able to direct “Shareowners, particularly company management
Slide 30: Socially Responsible Proxy Voting
Socially Responsible Proxy Voting Available proxy voting categories Animal Testing and Ethics Finance and Banking Corporate Political Activity Health Care Environment: Climate Change Human Rights Environment: Natural Resource Industrial Agriculture Management Labor Rights Environ
Slide 31: Summary
Summary Whether the incorporation of personal values or ESG factors is the goal, Parametric can design an investment solution. Balancing investor-specific values with return objectives does not necessarily require the sacrifice of performance. Incorporating ESG factors may deliver superior retur
Slide 32: Appendix
Appendix Introduction Exclusionary Custom ESG SRI Proxy ESG Index Appendix & Definitions Screens Portfolio Voting Copyright ©2011 Parametric Portfolio Associates LLC. CONFIDENTIAL. For Informational Purposes Only; Not An Offer to Buy or Sell Securities page 32
Slide 33: Disclosures
Disclosures Disclosures: This information should not be considered investment advice or a recommendation to buy or sell any particular security. The information in this material and specific securities mentioned are not representative of all securities purchased, sold or recommended for advisory cli
Slide 34: Tax-Managed Core
Tax-Managed Core Investment Team – Roles & Responsibilities Research David Stein Rey Santodomingo Chief Investment Officer Senior Researcher Model portfolio creation and evolution Portfolio Strategist for Tax-Managed Core Paul Bouchey Managing Director - Research Hemambara Vadlamudi Vassilii Nemtchi
Slide 35: Contact
Contact We welcome your inquiries. For access to our research and for product and general information, please contact us: 1918 Eighth Avenue Suite 3100 Seattle, WA 98101 T 206 694 5500 T 866 694 4101 F 206 694 5581 www.ParametricPortfolio.com Introduction & Exclusionary Custom ESG SRI Proxy ESG Inde
Slide 36: About MSCI
About MSCI MSCI is a leading provider of world-class, mission-critical investment decision support tools to financial institutions worldwide, with over 40 years of experience Deliverer of indexes, risk and return portfolio analytics, and corporate governance tools for use throughout the investment
Slide 37: About NASDAQ OMX
About NASDAQ OMX The NASDAQ OMX Group, Inc. is the world's largest exchange company. It delivers trading, exchange technology and public company services across six continents, with more than 3,600 listed companies. Global Index Group The first indexer to offer a complete family of indexes trackin
Slide 38: About IW Financial
About IW Financial IW Financial delivers global environmental, social and governance (ESG) research Global equity coverage includes proprietary and third-party research Values-neutral research approach Patented ESG investment research platform Comprehensive consulting services Clients includ
Slide 39: About Si2
About Si2 The Sustainable Investment Institute (Si2), is a non-profit organization based in Washington, D.C. Conducts impartial research and publishes reports on organized efforts to influence corporate behavior on social and environmental issues Closely follows shareholder resolutions proposed
Parametric Portfolio Associates — Investor Presentation (November 2011) on 6ix