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Talk given by Roger Frank of Benchmark Asset Managers, at TBLI CONFERENCE™ ASIA 2009.
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1700 Sansom St.
Philadelphia, PA 19103
215-525-4857
benchmarkam.com
SRI Fixed Income Investing
TBLI May 2009
s Benchmark Asset Managers
Benchmark 2009
Types of Capital
Benchmark 2009
Equity Debt
Public
Private
Objectives
Risk Returns
Liquidity
Duration Mission
Benchmark 2009
Financial
Social
Benchmark 2009
5
Vacation Snapshots
Benchmark 2009
6
Black Swan – Non Financial Type
Benchmark 2009
7
Symbiotics Microfinance Index v. Fixed Income
Benchmark 2009
8
Symbiotics Microfinance Index v. Fixed Income
9
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
1/2
/07
3/2
/07
5/2
/07
7/2
/07
9/2
/07
11/2
/07
1/2
/08
3/2
/08
5/2
/08
7/2
/08
9/2
/08
11/2
/08
1/2
/09
3/2
/09
Yie
lds
Marginal Spread to 5yr B-rated Corporates
Marginal Spread to 5yr BB-rated Corporates
Marginal Spread to 5yr BBB-rated Corporates
Marginal Spread to 5yr A-rated Corporates
Spread to 5yr AA-rated Corporates
Daily Close 5yr UST
Through-the-Cycle (Non-Linear) Spreading in the Ratings Ladder
Credit Cycle Peak(excess liquidity)
Credit Cycle Trough(systemic shock)
CCCCCC+B-BB+BB-BBBB+BBB-BBBBBB+A-AA+AA-AAAA+AAA-AAA
194bps241bps*
1382bps3393bps*
17 Credit Levels (Risk Free to B)
20 Credit Levels (Risk Free to CCC)
*S&P composite; not shown on graph
14x
7x
Risk Analysis: Establishing Context
Risk Return Spectrum
Benchmark 2009
Investment Alternatives
Public Debt
Corporate Investment Grade High Yield
Municipal
Sovereign
Money Market Equivalents Private Debt
Benchmark 2009
Mission Program Areas
Benchmark 2009
Mission Program Areas
Benchmark 2009
Benchmark 2009
14
PRIVATE FIXED INCOME PORTFOLIO
The Benchmark Private Debt Portfolio invests in the debt securities of private companies,
with a targeted return of 6%+ in the current environment.
MicroVest was the first private microfinance firm in the U.S. It targets well-established, proven MFIs that have exhibited successful growth but lack the financing to maximize the number of loans they can offer. MicroVest is dedicated to proving the commercial viability of microfinance and harnessing the power of capital markets to alleviate poverty. A strong staff and board with extensive private sector experience in emerging markets implements this approach. (http://www.microvestfund.com)
SunFarm Ventures, Inc. is dedicated to making solar power affordable and easy to use. The company’s SunFarm Network solution offers payment programs that minimize customers’ upfront costs and supports programs that make solar power as convenient and worry-free as buying electricity from a utility.
COMMUNITY IMPACT PORTFOLIO
Organizations selected for innovation and leadership and for bulletproof balance sheets
Diversification in social impact and organizational scope
Target annual return of 3 – 5 %
Benchmark 2009
15
The Community Impact Portfolio invests in organizations and businesses that directly
contribute to community development in the U.S. and around the world. Impact areas include
Education, Microfinance, fair trade, sustainable agriculture, renewable energy, green & affordable
housing and small business development:
E+Co provides capital and technical support to renewable energy enterprises in developing countries. The impact of targeting clean energy development is many fold. The energy generated displaces the kerosene and oil currently used. It stimulates and supports other local ventures, and keeps’ customers dollars local. E+Co’s innovative approach also includes a new model for financing clean energy projects through carbon monetization. (http://www.eandco.net)
Contact Details
Benchmark 2009
Benchmark Asset Managers 1700 Sansom Street Philadelphia PA 19103215 525 4857www.benchmarkam.com
Roger [email protected] 409 9763917 327 7215 (mobile)