www.ethic.investments 1

SEC Asset Management Advisory Committee

Evolution of Advice Subcommittee 

July 7, 2021

Jay Lipman, President, Co-founder & CCO, Ethic Inc.
www.ethic.investments 2

Intro to Ethic
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Ethic is a tech-enabled, sustainable 

asset manager that builds personalized 

portfolios unique to each client’s 

financial criteria and values

We create passive equity Separately 

Managed Accounts (SMAs) and 

Models personalized based on values 

and optimized for financial inputs

What we do

We use direct indexing to 

create a clean passive equity 

strategy that closely tracks the 

performance of existing indexes, 

such as the S&P 500

How we do it

Ethic is an SEC Registered Investment Adviser. See full disclosure at the end of this presentation.
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Ethic’s core customer segments:

Networks

TAMPs Platforms Aggregators

Institutions

Banks Foundations

Advisors

RIAs MFOs Broker Dealers Consultants
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100% of our $1BN+ in assets is invested 

in sustainable strategies addressing 19 of the great 

challenges facing the world today

Team

We're a team with institutional 

investing, technology, data and 

design expertise representing 

over 15 countries

Traction

We've been on our mission

for 5 years and now manage 

$1BN+ of sustainable 

investments

Impact

We address 19 of the great challenges 

facing the world in our portfolios, from 

climate change to women’s rights to 

racial justice

Asset and team metrics as of June 1, 2021
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Personalized investing
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Investor expectations are rapidly growing and 

delivering a personalized offering is the new norm.

Managing money

Managing money

Managing money

Achieving goals

Achieving goals Personalization

Legacy expectation

Established expectation

Emerging expectation
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Wealth Management

Asset Management

Identifying 

clients

Client 

suitability &

preferences

Product 

Creation

Trading & 

Execution

Portfolio 

Management

Ongoing reporting &

Engagement

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Technology can power efficiency and scale throughout the lifecycle of 

investment personalization 

Customer experience

Product & technology
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● Financial

● Tax

● ESG preferences

Mid T.E.

High T.E.

Low T.E.

Investment management engine

Investor inputs

Personalized portfolio

● Index tracking

● Tax optimization

● Sustainability optimization

● Proxy voting

Technology and data science allow us to translate individual 

investor preferences into tax optimized, values-aligned SMAs

● Collect & store investor preferences

● Portfolio construction

● Aggregate trading

Transparency Auditability Interpretability Scalability

Automated workflow

Controls

● Financial

● Risk models

● Sustainability

Data inputs

Adaptability
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Considerations
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Asset Management

Identifying 

clients

Client 

suitability &

preferences

Ongoing 

reporting &

Engagement

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Potential considerations when it comes to personalized investing 

technology throughout the investment lifecycle

● What new applications of data or standards for 

use of information should be considered as more 

personal data (social) is available publicly?

● What detail or types of information would be 

most useful to investors in assessing and 

comparing personalized investments, including 

against traditional products?

● How can investors assess their personalized 

choices over time?

Customer experience - Product & technology
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Potential considerations when it comes to personalized investing 

technology throughout the investment lifecycle

● How can regulators promote transparency into 

the creation of personalized investment portfolios 

without stifling innovation? 

● What reporting might asset managers for 

personalized investment products that differs 

from other investments?

Customer experience - Product & technology

Product 

Creation

Trading & 

Execution

Portfolio 

Management

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Ethic Inc. is an SEC Registered Investment Adviser located in New York, NY. Registration of an investment adviser does not imply any level of skill or training. Information 

pertaining to Ethic Inc’s registration or to obtain a copy of Ethic Inc.’s current written disclosure statement discussing Ethic Inc.’s business operations, services and fees is 

available on the SEC’s Investment Adviser Public Information website –www.adviserinfo.sec.gov or from Ethic Inc. upon written request at support@ethicinvesting.com. 

Information provided herein is for informational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, 

investments, or investment strategies. Any subsequent, direct communication by Ethic Inc. with a prospective client shall be conducted by a representative of Ethic Inc. that is 

either registered or qualifies for an exemption or exclusion from registration in the state where a prospective client resides. Information contained herein may be carefully 

compiled from third-party sources that Ethic Inc. believes to be reliable, but Ethic Inc. cannot guarantee the accuracy of any third-party information.

Ethic Inc. does not render any legal, accounting, or tax advice. Ethic Inc. recommends all investors seek out the services of competent professionals in any of the 

aforementioned areas. Ethic Inc. cannot provide any assurances that any investment strategies, simulations, etc. will perform as described in our materials. ALL 

INVESTMENTS INVOLVE RISK, ARE NOT GUARANTEED, AND MAY LOSE VALUE. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX 

PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY. 

Disclosures