History Has Steered Folks to Environmental, Social and Governance Investing.
In this Milwaukee Journal Sentinel article from July 15th, Tom Saler explores socially responsible investing (SRI) and breaks down some recent high-profile examples.
Read July article.

 

New Firm Targets Socially Responsible Investors.
In this article from January 9th, Milwaukee Journal Sentinel reporter Kathleen Gallagher explores Greg Wait's launch of a new company that combines socially responsible investing and online investment advice.
Read January article.

 

Investment Trends, with insights by Greg Wait. In the Milwaukee Journal Sentinel's October 17th article, Kathleen Gallagher and Greg Wait discuss the recent rise of environmental, social and governance, or ESG investing. Greg provides insight into how reduced risk and improved returns are causing money managers to include ESG investing in their portfolios. Read October article.

 

Responsible Investing: Creating Financial and Non-Financial Value by Greg Wait. Do investors sacrifice returns in pursuit of their goal of advocating for a better world in which to live?
Learn more.

 

Ten-Year History of Investment Manager Performance by Greg Wait. As part of our process, we have conducted investment manager research and due diligence resulting in manager or fund recommendations to our clients. Here are our findings.

 

The month of September, 2013 marked the 10-year anniversary of Falcons Rock serving our clients and building relationships. We are grateful for all the years of friendship, loyalty, and support, and look forward to our next decade!

 

Investment Trends, with insights by Greg Wait. In the Milwaukee Journal Sentinel's July 20th article, Kathleen Gallagher and Greg Wait discuss the rising U.S. Treasury rates and using duration as a measure of risk. Greg's comments relate to whether we'll be "looking back on this short-term increase in yields as the warning shot for the much-anticipated longer-term rise in interest rates." Read July article.

 

Dec 9, 2012, Journal Sentinel's Kathleen Gallagher interviewed Greg Wait on current Investment Trends. Read the full article: "Low-quality stocks continue to provide strong returns."

 

We've Grown! Meet our new investment consultant: Tony Sebranek.

 

Investment Trends column of Milwaukee Journal-Sentinel shows Top-Down investment strategies are achieving positive results.
Read article on Top-Down Investing

 

Additional articles in the Milwaukee Journal Sentinel featuring Falcons Rock:
One is a fascinating story about a Mequon drug development company, which has a few of our clients as private investors.
Read article about our angel investors

 

Another features us in the Market Trends column: Strategy targets uncertain economy - and how Falcons Rock confronts specter of slow growth.
Read how we help clients get ready

 

There is a great deal of debate in the investment industry regarding active vs. passive (indexing) investment management.  We researched this topic and the results might be surprising to you.  Please see our research paper on this subject...more

 

We have experienced interesting situations with our clients. To update you on our firm’s activities, check out examples of recent work we have done for our clients...more

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US SIF Member 2017

Responsible Investing

 

Can investors do well by doing good?  This is a question that has been posed by families and institutional investors for years.  It has become such a prominent current topic that the University of Pennsylvania, Wharton School hosts a radio program called “Dollars and Change” (SiriusXM Ch. 11) that suggests businesses can and should be an agent for positive social change, and that a company’s positive impact in society can support their business model, drive innovation, and improve the bottom line.

Evidence is mounting that companies with better management of Environmental, Social and Governance (ESG) issues are likely to make better investments over time.  In one of the most significant studies that has been published in this area, Robert Eccles et al. conducted an analysis of two matched sets of firms covering an 18-year period.  They found that, over the long-term, corporations that voluntarily adopted environmental and social policies many years ago significantly outperformed those that had adopted almost none of these policies, both in terms of stock market performance and accounting performance.*

Responsible Investing is a growing discipline used by professional investment managers that incorporates ESG criteria in the process of security selection. Once referred to as “Socially Responsible Investing,” this approach has been around for decades, but is gaining widespread consideration among public pensions and endowments, non-profit organizations and family offices around the globe.

A number of investment management firms are integrating ESG factors as part of their risk analysis of stocks and bonds, and view this work as part of their “information edge” within a disciplined investment process.  Examples of ESG issues that might be considered include:

  • Environmental – toxic emissions and waste, water management in manufacturing
  • Social – product safety and quality, labor management
  • Governance – board structure and independence, business ethics and competitive behavior

Falcons Rock has conducted research regarding the relative investment performance of funds that utilize a responsible investment approach (see Responsible Investing: Creating Financial and Non-Financial Value ), and concluded that ESG investing may offer investors the “double bottom line” that many are seeking – competitive returns with the opportunity to align their portfolios with their values. Morningstar has recently completed research with similar conclusions.

Falcons Rock offers the following services to our clients that are interested in Responsible Investing:

  • Education – resources to create awareness and improve understanding of ESG concepts**
  • Analysis of Current Portfolio – to determine if responsible investing can be incorporated within the current investment structure
  • Formalize Investment Policy – establish client investment and ESG objectives, understand fiduciary responsibilities, prepare written policy statement
  • Design ESG Portfolio – determine asset allocation, address risk management, establish return expectations, investment manager/product searches and presentations
  • Implementation – coordinate and supervise implementation of the policy statement
  • Ongoing Supervision – comprehensive performance measurement reporting, strategic and tactical asset allocation, execution of appropriate changes, responsible investing reviews

*Robert Eccles, Ioannis Ioannou and George Serafeim (2011), ‘The Impact of Corporate Sustainability on Organizational Processes and Performance’, Harvard Business School Working Paper Series 12-035. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1964011

**Greg Wait, Falcons Rock Investment Counsel, is a member of the US SIF (The Forum for Sustainable and Responsible Investment), a non-profit organization representing more than $2 trillion in assets under management or advisement. http://www.ussif.org/