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Corporate Social Responsibility
News
11.19.2004 ET
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CSR News from:
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Generation Investment Management
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News Category:
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Generation Announces Plans For New Investment Management Firm
A new investment management firm dedicated to the principles of long-term investing, integrated sustainability research, and client alignment
Founding Partners include David Blood, ex-CEO of Goldman Sachs Asset Management, and Al Gore, former Vice President of the United States
(CSRwire) London - Generation Investment Management ("Generation") announced
it intends to launch as an independent, employee owned investment
management firm focusing initially on long only global equities.
Generation will integrate rigorous traditional fundamental equity analysis
with sustainability research to create a new approach to long-term
investing.
David Blood, ex Chief Executive of Goldman Sachs Asset Management, is a
co-founder and the Managing Partner of Generation. He said today:
"Investors are clearly looking for a money management firm dedicated to
long-term investing and whose interests are aligned with clients.
Generation was founded with these principles in mind."
Long term investing implies identifying companies with an enduring
capability to create value and sustain competitive advantage. To identify
these companies, Generation's integrated sustainability research will take
into account a broader range of issues than traditional equity analysis
can capture. Generation believes social, environmental and geopolitical
issues can materially impact a company's ability to sustain returns.
Generation will invest in companies that will enhance shareholder value by
managing the risks and seizing the opportunities that these long-term
economic, environmental, social and geopolitical challenges offer.
Generation brings together a proven team of equity analysts with leaders
from the sustainability research field. Blood added: "Combining
fundamental equity analysis and sustainability research at the beginning,
middle and end of the investment process is just a more sensible way to
invest and deliver superior returns to our clients. Sustainability
combines the principles of economic growth, environmental stewardship and
social accountability. Companies that embrace these principles by managing
risks and investing in the future offer genuine long-term rewards for their
shareholders."
Al Gore, formerly Vice President of the United States and author of the
critically acclaimed book, "Earth in the Balance" is Chairman of
Generation. He commented:
"I'm delighted to join David Blood in founding this firm. The issue of
sustainability has always been a passion of mine. Helping to establish the
competitive business advantages of sustainability in an investment context
with this exceptional team is a very exciting challenge.
Transparency, innovation, eco-efficiency, investing in the community,
nurturing and motivating employees, managing long term risks, and
embracing long-term opportunities are integral parts of a company's
enduring capability to create value. Business leaders who align their
business strategy and technical development with sustainability and social
accountability will deliver superior long-term results to shareholders."
Generation will launch with four other founding Partners:- Mark
Ferguson, previously co-Head of Pan-European Research at Goldman Sachs
Asset Management and a Global Equities Portfolio Manager, is Chief
Investment Officer.
- Peter Harris, previously head of International Operations for Goldman
Sachs Asset Management, is Chief Operating Officer.
- Peter S. Knight, formerly Managing Director Met West Financial,
lawyer, Chief of Staff for Senator Al Gore (D-TN) from 1977-1989, and
Campaign Manager for President Clinton's successful re-election in 1996,
is President of Generation U.S.
- Colin le Duc, previously Director of Research for SAM Sustainable
Asset Management (Zurich) and an international strategy consultant for
Arthur D. Little in London, is Head of Research.
Mark Ferguson, Chief
Investment Officer of Generation, added:
"Our team is a blend of traditional investment management and
sustainability experts. The composition of our investment team provides
us with a unique ability to integrate fundamental equity analysis with an
understanding of how companies embrace the principles of sustainability.
This will allow us to deliver superior financial returns to clients over
the long term."
Colin le Duc, Head of Research for Generation, said:
"I am delighted that former Vice President Gore will serve as our
Chairman. As a broad thinker with the ability to analyze long-term
sustainability themes and how they will impact business competition, he
brings a unique perspective to the firm.
"In every sector, there are long-term challenges which present risks and
opportunities for a company's enduring capability to create value. We
believe that research into the implications of these business risks and
opportunities is, by and large, unsophisticated. There is therefore a
significant opportunity for Generation to deliver long term research that
enables the team to select the stocks that will create long term value for
our clients."
Generation is based in London, with its U.S. offices in Washington, DC.
The firm will manage the assets of institutional investors such as pension
funds, foundations and endowments, as well as those of select high net
worth individuals. Generation expects to make extensive use of long-term
performance based fees. Generation will begin its investment management
business in early 2005.
Notes To Editors - About Generation's Founding Partners
Hon. Al Gore, Chairman
Mr. Gore served as the Vice President of the United States of America from
1993 to 2001. Mr. Gore spent 24 years as an elected official, serving 8
years in the US House of Representatives and 8 years in the US Senate
before his election as Vice President. Since leaving government, Mr. Gore
has been involved in teaching at the university and post-graduate level and
in private business in the fields of financial services and technology. He
is on the Board of Apple Computer and has served for four years as Senior
Advisor to Google. He is also Chairman of INdTV.
Mr. Gore is the author of the critically acclaimed book, "Earth in the
Balance" and took the lead on environmental issues for the Clinton-Gore
White House, including breaking the deadlock to secure international
agreement on the Kyoto Treaty. For 8 years, he also chaired the
President's Council for Business and Sustainable Development and
co-chaired, with the Premier of China, the US-China Bi-National Commission
on Sustainable Development. He is a graduate of Harvard University.
David Blood, Managing Partner
Prior to co-founding Generation, David served as the co-CEO and CEO of
Goldman Sachs Asset Management from 1999 to 2003. His responsibilities
included all aspects of the global business including portfolio
management, sales and client service, risk management and infrastructure
(approximately 1600 people and $325 billion in assets under management).
From 1985 to 1999, David served in various positions at Goldman Sachs
Group, Inc. including Head of European Asset Management, Head of
International Operations, Technology and Finance, Treasurer of the Goldman
Sachs Group, L.P. and Head of Global Private Capital Markets. He was also
a member of the Partnership Committee and the European Management
Committee. David was the first recipient of the John L. Weinberg Award in
1990, an award given to a professional in the investment banking division
who best typifies Goldman Sachs' core values.
David received a B.A from Hamilton College in Clinton, N.Y. and an MBA
from the Harvard Graduate School of Business. He is a member of the Board
of Trustees of Hamilton College, New Philanthropy Capital, and SHINE. In
addition, David serves on the Board of Directors of Greystone Capital
Management and is a member of investment or advisory committees for four
family offices or endowments with approximately $3.0 billion of assets
under management.
Mark Ferguson, Chief Investment Officer
Mark has worked in the asset management business for over ten years. He
worked at Schroder Investment Management from October 1993 until February
1999. While at Schroder Investment Management he was rated as Number One
European Fund Manager in the 1999 Reuters Survey. In February 1999, Mark
joined Goldman Sachs Asset Management. He has held various positions at
Goldman Sachs Asset Management including co-Head of Financials Research
Team, Member of Pan European Stock Selection Group, co-Head of Pan
European Research and Global Equity Portfolio Manager.
Mark holds a BSc (Hons) in Urban Land Economy from Sheffield Hallam
University and an MBA in International Finance from the European
University in Paris. Mark speaks fluent French.
Peter Harris, Chief Operating Officer
Peter has over 25 years operations and administration experience in the
asset management industry. He worked for CIN Management Limited (CINMan)
for 19 years where he established the Marketable Securities Division
Operations Department, providing control and support to the investment
management process for the British Coal Pension Schemes. In 1996 CINMan
was acquired by Goldman Sachs. Peter joined the Asset Management Division
of Goldman Sachs (GSAM) where he was responsible for global projects that
designed and implemented GSAM's global operations infrastructure and
systems. In 2000 he transferred to New York to manage GSAM's North
American operations, with responsibility for over 100 staff. He moved back
to London in 2003 where he managed GSAM's international operations,
including responsibility for the London, Frankfurt and Tokyo operations
teams. Peter is a qualified accountant.
Peter S. Knight, President, Generation US
Peter was a Managing Director of MetWest Financial, a Los Angeles-based
financial services company from 2001 to 2003. Peter started his career
with the Antitrust Division of the Department of Justice. From 1977 to
1989, Peter served as Chief of Staff to Mr. Gore when Mr. Gore was a
member of the U.S. House of Representatives and later the U.S. Senate.
Peter served as the General Counsel of Medicis Pharmaceutical from 1989 to
1991, and then established his law practice representing numerous Fortune
500 companies as named partner in a Washington D.C. law firm. Peter has
held senior positions on the last four presidential campaigns, including
serving as the campaign manager for the successful 1996 re-election of
President Clinton.
Peter currently serves as a director of Medicis Pharmaceutical, Entremed
and Par Pharmaceuticals. He is also a director of Schroders' mutual fund
and hedge fund family, a member of the board of Duke University's Terry
Sanford Institute of Public Policy, a member of the Cornell University
Council and the Cornell University Advisory Board for the College of Arts
and Sciences. He received his B.A. from Cornell University, his J.D. from
the Georgetown University Law Center in Washington, D.C.
Colin le Duc, Head of Research
Colin's career has focused exclusively on the interface of
business/finance and sustainable development. He worked for Total, the
French energy company, in London and Paris as a corporate strategy analyst
for 3 years. He then worked for Arthur D. Little Inc. in London for 5
years as a strategic management consultant. As part of ADL's Global Energy
Practice, Colin advised blue chip clients globally, with a focus on energy,
corporate strategy and sustainability. Subsequently, he spent 3 years with
Sustainable Asset Management ("SAM") in Zurich. At SAM, he ran the 15
person analyst team conducting sustainability research on large cap
companies globally with the aim of selecting companies for the Dow Jones
Sustainability Indexes and SAM's actively managed investment funds.
Colin holds a BSc in International Management and Modern languages from
University of Bath, UK and has completed the Corporate Finance Programme
at London Business School. Colin speaks fluent French and conversational
German.
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