Julia Dreblow BA Hons, Dip PFS 11 May 2016 For information only. - - PowerPoint PPT Presentation

Julia Dreblow BA Hons, Dip PFS 11 May 2016

For information only. sriServices is not authorised to offer advice. This presentation is for use by UK financial services professionals only. Registered company - SRI Consultants Ltd, 03904843

1.

Introduction

2.

Overview of ‘SRI’ market & its potential

3.

Issues, approaches & ‘SRI Styles’

4.

Suggested advice process

5.

Fact finding, fund research & your audit trail

6.

Next Steps

Who?



sriServices’ aim is to grow ‘Sustainable, Responsible & Ethical’ Investments

• 25 years in Financial Services

(previously Friends’, UKSIF, NPI)

• Awarded ‘Highly Commended’ in the

Corporation of London ‘Sustainable City Awards’ 2015 (Sustainable Finance). Shortlisted in 2016.

What?



Online specialist SRI information and adviser friendly tools - Fund EcoMarket & SRI StyleFinder



Consultancy, partnerships & media



Rapid & diverse international expansion

• UNPRI ‘s 1000+ signatories, manage over $60 trillion

worldwide

• Eurosif ‘Engagement and Voting’ assets exceed £1.434 trillion

2015

• Impact Investor(.co.uk) c£36bn Worldwide 2014
• $3.4 Trillion ‘Divestment’ fossil free campaign 2016



Highest ever retail net ethical fund sales UK

• 1.2% of total (source: IA) 2015
• c£15bn Total FUM EIRIS, 2015



Potential demand c30-50%

• 43% of people would like to move money away from companies

involved in ‘unethical / unsustainable activities’

• 34% of investors wanted to ‘help build a sustainable UK

economy'... (UKSIF, 2013)

• SLI 2015 Millenials research is similar

The diversity of

issues makes this area complex to advise on...

• Ethical
• Social
• Environmental
• Governance

Tesco accounting issues (UK 2014) Rana Plaza disaster (Bangladesh 2013) BP Deepwater Horizon (Gulf of Mexico 2010) . VW governance issues (Germany 2015), Growing water scarcity

Funds approach issues in different ways...

 Support  Avoid  Engage

‘Stranded Assets’ risk & the Bank of England (2015) comments. UN Global Development Goals (2015), Divest ‘go fossil free’ campaign, Tesla

ESG Integration Responsible Ownership Sustainability Theme Ethically Balanced Negative Ethical Environmental Theme Social Theme Faith Based

• Highlights diversity of

investment aims and options

• Segments reflect ‘key features’

and differentiators

• Areas of ‘crossover’ – ie not

always ‘black and white’ or a single solution

• Simplifies identification of

ethically relevant options

• Helps you match ‘what funds

do’ to ‘what a client wants’

Total SRI funds – by SRI Style

Negative Ethical (86) Ethically Balanced (84) Sustainability Themed (62) Environmental Themed (35) Faith Based (4) Social Themed (1)

348 entries Includes funds & corporate strategies This includes Life, Pension, OEIC, IT and selected others Total ‘Funds’ 296 see diagram – this excludes ‘corporate strategy’ listings OEICs: 66 18 Global OEIC funds (of FEM total: 91) 11 FI / income funds: (of FEM total 46

Of the 44 OEICs Fund EcoMarket has full data

• n:

36 have sustainability policies 35 have ethical policies 35 avoid arms manufacture 35 avoid tobacco 30 animal welfare policies 28 invest in clean energy / renewables 26 limit exposure to carbon intensive industries 27 have social policies 24 have health/wellbeing policies 24 avoid coal, oil and gas majors 19 strictly screened 14 RSMR rated 6 invest over 50% in large cap holdings 6 Faith friendly

Integrate this into regular processes eg products, % portfolio, reviews Record your findings eg - for reference, compliance & audit trail Refine SRI research eg - issues, attitudes, other factors Identify key areas of interest eg - issues, approaches, styles Identify interested clients Are you interested in ethical, social, environmental or faith related issues?

1.

Ethical / SRI information only

2.

‘SRI StyleFinder’ Fact Find Questionnaire

3.

Fund filter options: Name, Investment Type, Product, SRI Style, SRI Policies, Other SRI Features

4.

‘Find Adviser’ button

5.

Adviser Support area & links

6.

Full report generation for adviser audit trail

“… I think that your site is the missing link for many IFAs who are nervous/anxious about raising ethical investing with their clients. It gives them a process and an audit trail – and I suspect many of those advisers who don’t raise ethical investing with their clients don’t raise the issue because they have no process in place if the client was to say that they did want to invest ethically. This is what happened to me, and it was

• nly because I wanted to offer ethical

investing to my clients that I discovered your site through my own research.”

‘How can this area enhance your clients’ experience?’

• eg for different groups of clients and

interests (charity, pensions) ‘Can you be sure to offer ‘appropriate’ advice without discussing personal values /SRI?’

• Adviser ISO, changing values

‘How can this area benefit your business?’

• Younger clients, new recruits, changing
• pinions, trust / reputation...

‘What changes do you need to make for this to be a success for you?’

• Initial & supplementary fact finding,

research & audit trail, service providers, consider how to ‘mix and match’

Contact: julia@sriServices.co.uk www.sriServices.co.uk www.FundEcoMarket.co.uk @JuliaDreblow

Questions welcome!