Solutions for Asset Managers

The growing demand among institutional and retail investors for Terror-Free portfolios and products has led more and more managers to enter this space.

Terror-Free investing is gaining traction:

• Americans and their state representatives are choosing to exclude from portfolio companies with ties to Iran, Sudan, Syria, and North Korea
• Institutional and individual investors are choosing Terror-Free options and releasing RFP's requiring such screens
• Involvement in terrorist states can pose operational and reputational risks
• Reliable research on corporate involvement in terror states is now readily available

Some managers are taking a traditional compliance approach and reacting to client guidelines and mandates by excluding companies that fail to meet each client's definition of involvement in terror states. An increasing number of managers, however, are seeing Terror-Free investing as an opportunity. Some managers that are "productizing" Terror-Free portfolios are using a certified Terror-Free index to make use of an industry standard definition of Terror-Free that satisfies all current and pending legislative mandates. This definition was adopted by FTSE when they created the FTSE-CSAG Terror-Free Index family. This family of indexes is certified by CSAG to be free of companies that have active or current ties that are non-humanitarian in nature to Iran, Syria, Sudan or North Korea.

Others are incorporating Terror-Free screening and certification with additional social and faith-based factors to target specific markets. Firms seeking to incorporate Terror-Free with other environmental, social or governance (ESG) factors can access CSAG's research, ESG and faith-based research and product development and positioning services through IW Financial, a leading provider of environmental, social, and governance research, analytics and consulting services. Whatever combination of factors used, Terror-Free certification is the best way to let investors know that your product or portfolio is and will remain Terror-Free. Conflict Securities Advisory Group is the leading and most reputable firm providing Terror-Free certification as well as research and screening services.

How to meet the institutional and/or retail demand for Terror-Free investments:

• Screen portfolios on a per client basis
• Use a Terror-Free index for passive or commingled Terror-Free product approach for institutional clients
• Develop a CSAG-Screened and Certified Terror-Free separate account or similar actively-managed product for institutional and individual investors
• Incorporate Terror-Free screens with other factors to target a specific market segment