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De-mystify Socially Responsible Investing with MARC J. LANE'S 32nd book, "PROFITABLE SOCIALLY RESPONSIBLE INVESTING? AN INSTITUTIONAL INVESTOR'S GUIDE," To learn more, CLICK HERE

"An invaluable tool for fiduciaries considering SRI, the book advances original research finding competitive financial performance for positive screening." - SocialFunds.com, August 4, 2005. To read the entire review. 

"Profitable Socially Responsible Investing?'' Makes a Convincing and Provocative Case For Values-Based Investing, Corporate and Social Change" - Kiplinger.com, May 20, 2005. To read the entire review.

"Profitable Socially Responsible Investing?" makes the case that the way to do right by your conscience and your portfolio is to drop the typical SRI strategy of "negative screening - Wall Street Journal, May 13, 2005. To read the entire review.

Marc J. Lane Investment Management, Inc. is a privately owned asset management company affiliated with The Law Offices of Marc J. Lane, A Professional Corporation, which since 1971 has offered specialized legal services to high income, high net worth individuals and the entities which they own and control.

Martindale-Hubbell has consistently recognized The Law Offices for its "high professional legal standards and ethics" in its Bar Register of Preeminent Lawyers, awarding the firm its distinguished AV rating for the highest standards of legal ability and adherence to the professional standards of conduct, ethics, reliability, and diligence.

Consistent with the principles upon which The Law Offices' reputation has been built, Marc J. Lane Investment Management, Inc. has adopted the rigorous ethical standards established by the Association for Investment Management and Research. As such, it is committed to act with integrity, competence, dignity, and in an ethical manner when dealing with the public, clients and prospects.

To serve its value-based clients, the firm has pioneered Advocacy Investing^SM - a state-of-the-art approach to socially and environmentally responsible investing in which both equities and fixed-income securities are selected by exacting financial and governance standards as well as criteria reflective of each client's unique social and environmental concerns.

The firm's strategy is particularly appealing to individuals and organizations unwilling to sacrifice investment performance or diversification as they back companies whose social and environmental behavior reflects their own values.

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To many observers, the term Socially Responsible Investing ("SRI") represents and is limited to the negative process of excluding from an investment portfolio certain socially or environmentally undesirable industries, such as tobacco, alcohol, gambling, defense, chemicals, mining, timber, and energy. While the conclusions of academic studies vary widely, there remains the common perception in the investment community that negative SRI screening may result in portfolios that are not sufficiently diversified, and which may underperform the general market. [Our own empirical research indicates a positive correlation between certain desirable corporate social behaviors and stock market performance. See, for example, "Corporate Behavioral Screening: A New Perspective for Social Investors" by Marc J. Lane, 2004.]

On the assumption that, as social investors gain insight and sophistication, they are less likely to rely primarily on negative screening by product or industry, Marc J. Lane Investment Management, Inc. has introduced Advocacy Investing^SM, a combination of positive portfolio screening strategies that (after first screening for sound business fundamentals and acceptable corporate governance) seeks to identify companies whose corporate behavior can reflect and promote the investor's own beliefs and values. These may relate to such social concerns as a company's practices in the Environment and Social Justice (consisting of Human Rights and Diversity & Employee Relations.)

The basic concept of Advocacy Investing^SM is that careful positive screening of management behavior may empower the investor, more than negative screening by industry could have done, to deploy capital in a way that gives voice to the investor's principles, while maintaining acceptable levels of portfolio diversification and performance.

The critical distinction between ordinary Socially Responsible Investing and Marc J. Lane's Advocacy Investing^SM is this: We seek to help individuals and organizations invest their money in business enterprises that actively reflect and promote their values and beliefs, without sacrificing diversification or performance.

Advocacy Investing^SM begins with an in-depth process to "drill down" to the investor's core values and beliefs. Following our fundamental screening process for all portfolios, including rigorous criteria for corporate governance, the remaining universe is then screened to reflect the investor's unique requirements for company behavior, and a complete portfolio is then proposed. The recommendations are mutually reviewed, fine-tuned if necessary, and the implementation process is begun.

GENERAL INVESTMENT PHILOSOPHY AND RISK MANAGEMENT

Marc J. Lane Investment Management, Inc. uses a disciplined investment process in managing each client portfolio to achieve specific financial goals. The firm seeks to maximize total return, given each client's unique financial situation and investment objectives.

Our investment philosophy centers on the customization of each investor's portfolio to meet their specific financial goals. We work collaboratively with each of our clients to arrive at objective conclusions about the critical issues they and/or their organizations face, and the consideration that should be given to the numerous social and environmental issues most important to them in the construction of their portfolios.

Next, we assess the client's risk tolerance, cash flow requirements, time horizon, tax considerations, and expectations for long-term portfolio growth. This information is then used to determine the appropriate mix of stocks, bonds and cash equivalents held in each of our client's accounts. Our goal is to realize our clients' total investment return objectives while furthering their personal values and/or organizational missions.

While each of our clients has their own unique set of goals and objectives, we manage all of our clients' portfolios according to several universal investment strategies that we believe are crucial to financial success:

• We invest for the long-term. We purchase both stocks and bonds that have the potential to provide an attractive level of return over long periods of time. This allows us to look past the market's short-term, sometimes volatile ups and downs and concentrate on achieving our clients' long-term objectives.
• We are not market timers and do not attempt to move in and out of stock positions in an effort to "second guess" the movements of the market. We also do not invest in the stocks or bonds of unseasoned companies. Strategies of this nature bear more resemblance to speculation than to prudent investment management.
• When setting industry sector weights we first look at the larger demographic and secular trends affecting the economy, and then actively target those sectors best positioned to take advantage of developing trends.
• We use time-tested criteria to determine appropriate entry and exit points for each of our selected stocks. These price points are strictly enforced, removing the risk of "chasing" a stock on the way up as well as the kind of panic selling that can so easily undermine portfolio performance. Focused research and strict discipline are critical to executing an effective long-term investment strategy.
• Once portfolio candidates are selected, we employ our proprietary social and environmental screening process for those clients so inclined. Based upon the client's specific criteria, securities are further screened and a portfolio is constructed.
• The voting of corporate proxies is another tool that can be used to further an individual's values or an organization's mission. Socially and environmentally conscious boards or individuals can actively vote proxy solicitations in a manner consistent with their values or statement of investment policy, thereby promoting responsible practices at the companies represented in their investment portfolio. Alternatively, Marc J. Lane Investment Management, Inc. can perform that entire function, at no additional fee, by actively evaluating and voting proxies on the client's behalf.

Our clients realize that any participation in the stock market carries with it a certain amount of risk. While neither risk nor volatility can be eliminated from stock market investments, we at Marc J. Lane Investment Management believe that both can at least be mitigated by means of prudent and professional management.

We employ the following basic risk management strategies in the management of our equity portfolios:

We buy stocks at reasonable prices, relying on the principles of fundamental analysis to determine if a stock is at a reasonable price relative to its industry peers as well as the overall market. (Fundamental analysis is the study of how a stock is priced in comparison to the company's business performance and financial strength.) We look for companies that are among the leaders in their industries, with innovative management teams, and the ability to generate above-average earnings growth.

We seek companies with low debt levels, clean balance sheets, and strong free cash flow that utilize transparent, understandable accounting methods.

We look for stocks with reasonable Price/Earnings and Price/Sales ratios. A company must be at or below the P/E and P/S ratios that we have determined are reasonable for its industry.

We provide an appropriate level of portfolio diversification so as to limit portfolio losses should any one issue come under unusual pressure. Our equity portfolios typically hold 25 to 35 individual issues.

We avoid small cap stocks (less than $1 billion in market capitalization). These issues tend to have minimal participation in foreign economies, less pricing power for their products and services, have more price volatility and have less liquidity than their larger counterparts.

We hold positions in a broad range of industry sectors. Many managers concentrate their holdings in a few "favored" industries. While we may overweight a particular industry due to its positive long-term outlook, we will not ignore less "fashionable" industries. We believe industry-wide diversification is critical to effective risk management. Reasonably priced opportunities are present in most industries, and we seek to take advantage of them regardless of their popularity.

We monitor our portfolios and individual positions closely and rebalance them as needed. We use a disciplined approach in order to avoid over-weighting any one sector or individual issue:

We trim overweighted positions in individual stocks if they appreciate to more than 6% of the overall equity portfolio value.

We invest no more than 30% of equity holdings in any one industry or economic sector, and we maintain appropriate diversification within each. In general, economic sectors are further constrained to no more than plus or minus five percentage points relative to S&P 500 sector weights.

We maintain a strict sell discipline. Knowing when to sell a stock is just as important as knowing when to buy. We use strict criteria in determining exit points for our holdings.

Listed below are just a few of our disciplined sell criteria:

When a stock's price is not supported by our future earnings expectations, or we feel its growth rate in earnings is unsustainable, we will sell the stock.

When a stock grows to such a degree that its weight is above our target level in the portfolio, we will sell all or part of it.

If the fundamental reason upon which a company was purchased deteriorates or proves to be unfounded, we will sell the stock.

If we alter our long-term sector strategy, we may decide to sell or reduce a position.

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View our Proxy Voting Guidelines.

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WBBM News Radio 780 interviews Marc Lane about Advocacy Investing^SM. Click here to listen

Marc Lane explained Advocacy Investing^SM to a group of values-based investors at an event recently hosted by Lincoln Park Zoo and Cosmopolitan Bank, both in Chicago. Gary Pett, the Bank's President, introduced Mr. Lane. Click here to view

Marc Lane addresses Advocacy Investing^SM at the Kellogg School of Management's 2004 Innovating Social Conference, Wednesday, October 6, 2004. Click here to listen

For more information, please contact:

Marc J. Lane, Esq.
312-372-5000
800-372-1040
advocacyinvesting@marcjlane.com

Regulatory Disclosure:

Marc J. Lane Investment Management, Inc. is a U. S. Securities and Exchange Commission Registered Investment Advisory firm. We do not render or offer to render personalized investment advice or financial planning advice through this website. Advice can only be rendered after all of the following conditions are met:
1. Delivery of our Form ADV Part II to you.
2. Execution of an Investment Advisory agreement between you and us.

This website is limited to providing you with general information on our services and provides a way for you to contact us. The information presented on this website is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, and does not purport to be complete and is not intended as the primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. All references that might be made to an investment or portfolio's performance are based on historical data and one should not assume that this performance will continue in the future