Corporate Responsibility Report

Mischler Financial Group Corporate Responsibility Report*

*As of June 30, 2023

Long before corporate social responsibility became a best practice across multiple industries and organizations, since our inception in 1994, Mischler Financial Group has staunchly embraced the pillars associated with advancing environmental, ethical, philanthropic, and economic responsibility.

In view of our profile as the nation’s oldest veteran-owned & operated broker-dealer, we view our role as paramount within the investment banking and financial service sectors. Equally crucial, our commitment to corporate responsibility has been consistently evident in terms of the many direct and indirect roles that we play; as evidenced by the following (3) examples.

1. YTD 2023, Mischler investment banking roles within the context of corporate and municipal debt underwriting have had us bidding on and/or committing firm capital to the underwriting/origination and placement of $8.5bil notional value of “responsible” issuances. Each of those corporate and municipal debt issuances is categorized as either “Sustainable”, “Social”, “Green”, and/or “Green/ Sustainable.”

*Does not include 06/2020 co-manager role for a landmark $1bil Ford Foundation Social Bond, with proceeds earmarked to grant-making for Nonprofits in response to community impact from Covid-19.

In each instance where Mischler has committed firm capital (as well as human capital and related resources) towards the above-referenced underwritings, our contribution to corporate and social can be mapped to each CSR element.

• Environmental Responsibility: 10/15 transactions in (YTD) are categorized as “Green” and/or “Green/Sustainable”. Proceeds from the capital we helped raise have enabled Issuers to implement strategies and/or deploy additional capital to programs intended for climate improvement and environmental projects, and to a lesser extent, enhancing the environmental efficiency of manufacturing processes.

Social/Ethical Responsibility . 5 of 15 transactions can be viewed within the framework of both Social and Ethical (and to a lesser extent, Philanthropic, when considering the ultimate use of proceeds), as those respective bond offerings are formally categorized as “Social Bonds”; a form of debt that allows investors to help raise funds for projects with positive social outcomes that in some cases, provide an investment return. They include projects on improving food security and access to education, as well as health care and financing.

Economic Responsibility has been achieved in both direct and indirect ways:

i. We have committed firm capital and resources towards advancing responsible offerings brought by Issuers, whereby proceeds of the capital raised are dedicated to initiatives that will advance environmental betterment programs.

ii. We have advanced the agenda of investment and asset managers who are focused on deploying capital to investment vehicles that meet their respective ESG and DEI objectives.

• Philanthropic Responsibility. Mischler’s role i.e. ‘social bonds’ in which proceeds go towards enhancing the quality of life in communities complements the direct philanthropic role(s) and initiatives advanced by Mischler, as we direct upwards of 10% of firm profits to organizations that serve under-resourced groups (e.g. service-disabled veteran-centric), under-resourced communities, and organizations that rely upon philanthropic contributions in the course of researching and discovering cures for life-threatening ailments/diseases.

2. Consistent with each of the two prior years, Mischler has noticeably increased AUM of ESG-centric investment vehicles and has also further expanded DEI thought-leadership relationships with those of our investors and with counterparts at the largest investment banks that we partner with.

La-Yona Rauls Managing Director Corporate Cash Solutions

La-Yona Rauls Managing Director, Corporate Cash Solutions

I. The strategic partnership we formed with BlackRock in Q4 2020, which includes our offering three exclusive share classes of BlackRock-administered ESG-centric money market funds for Mischler clients, has continued to accelerate. This past year, through the leadership of Mischler’s Managing Director for Corporate Cash Solutions La-Yona Rauls CNAV FedFund (HUAXX) and FNAV LEAF (MFGXX), and FNAV LEAF EDUXX, (each ESG-designated funds without 12b-1 fees) has attracted approximate $3bil in investments from a discrete spectrum of Fortune corporate treasury teams and recognized asset managers. Based on standing commitments from other corporations and a select universe of municipal/public pension managers, we are projecting $5bil AUM in these funds by year-end 2023.

3. 2021 also marked the formation of the “Mischler ESG|DEI Cohort”, an internal working group led by Managing Director La-Yona Rauls and Joni Abel, Director of ESG & DEI, each of whom has been charged with developing, refining, and implementing the firm’s best practice policies. This working group is also responsible for engaging with counterparts across the financial service sector in the course of sharing perspectives that can be leverag.

Joni Abel Director, ESG & DEI

Joni Abel
Director, ESG & DEI

As we pass the mid-year milestone for 2023, Mischler Financial Group looks forward to furthering our commitment to corporate responsibility within our organization and in the course of aligning with and learning from those who are dedicated to bettering the ever-evolving nature of CSR best practices.

dean chamber mischler financial group corporate responsibility report 2021





Dean Chamberlain (SDV) Principal & Chief Executive Officer