Digital Planet - intervalor.com

Amity InsightDigital Planet:A brave new world for business

This is for professional advisers only. This material is notsuitable for retail investors who should not rely upon it.

Welcome to the Digital Planet

By Thomas Fitzgerald, Investment Analyst, Ecclesiastical Investment Management Limited

“By 2005 or so, it will become clear that the internet’s impact on the economy has been no greater than the fax machine’s.” Paul Krugman, Nobel Prize-winning American economist in 19981

Despite dire predictions, the internet has gone on to have a significantly greater impact than fax machines; indeed it could be argued that its impact in time will surpass that of the Industrial Revolution. The development and utilisation of digital technology is leading to wide-ranging structural changes in industries, companies and economies. As recently as the year 2000, 75% of the world’s technological information was in analogue form. But by 2007, 94% was preserved in a digital format, representing a near complete shift to a digital world in less than a decade2.

In this, the first of our two-part Amity Insight, we examine:

n the rapid shift from analogue to digital

n the catalysts for the digital revolution and its impact on several sectors

n companies that have been digital pioneers, have transitioned to the new paradigm or have failed to adapt

n the challenges and opportunities raised by the adoption of digital technology within an ESG framework.

What is digital?

The origins of digital technology can be traced back to the binary numerical system developed by Gottfried Wilhelm Leibniz in the 17th century. Digitalisation is the process of expressing a physical object or an abstract idea in numerical form, using a binary code consisting of zeros and ones. Each number in the system is referred to as a ‘bit’, the smallest element within the DNA of information. A string of bits is referred to as a byte, which simulates the object or idea in an electronic form for the purpose of translating, storing and processing by other forms of digital technology3.

Prior to digital, information was limited to analogue format, which conveys data as a continuous stream of electronic signals with varying frequencies or amplitude. Digital information has the advantage of ease of storage and it can be copied, edited and manipulated without degrading the quality over time.

1. Red Herring http://web.archive.org/web/19980610100009/www.redherring.com/mag/issue55/economics.html

2. Martin Hilbert and Priscila López ‘The World’s Technological Capacity to Store, Communicate and Compute Information’ Science, volume 332, pages 60-64, 2011

3. Nicholas Negroponte ‘Being Digital’ Coronet Books, New York, 1995

Tape (Analogue): The music itself exists in analogue form as a series of sound waves

Compact Disc (Digital): In contrast, a CD translates the sound into a digital form that is encoded onto a disc

2 Amity Insight October 2014

The acceleration of the digital world

Over the last 200 years, the world has witnessed several febrile periods that have bred new technologies, established new companies and galvanised expansion in economies. One of the first to have a profound impact on the planet was the Industrial Revolution, which spanned 150 years from 1750 to 1900. During this period, innovations in technology changed the way we live and work, mechanising processes that were previously labour-intensive, commercialising transportation that catered to the masses, and supplying electricity and sanitation to urbanised areas, dramatically improving living standards and health conditions over time4.

Beginning in the latter half of the twentieth century and significantly shorter in duration, the Digital Revolution is still currently having a global impact.

4. Robert Gordon ‘Is US Economic Growth Over? Faltering Innovation Confronts Six Headwinds’ CEPR Policy Insight, number 63, September 2012

Beyond... Robotics for domestic use

Artificial intelligence

Digestible sensors

Virtual reality

Smartwatch

ARPAnet – precursor to the internet

Intel founded

Silicon chip

1st transistor

1st large-scale, digital computer Z3

(1st programmable computer)

DAB radio

Google founded

eBay founded

Amazon founded

2G network

WorldWideWeb

1st mobile phone – Motorola

Microsoft Windows

1st CD pressed

1G mobile network

Microsoft founded

Email

Google buys Nest Labs

Facebook buys WhatsApp

iPad launched

Nest Labs founded

4G network

M-PESA launched

Bitcoins

App store launched

iPhone launched

Wii game console

Twitter founded

Facebook founded

Skype founded

Android system

Wikipedia founded

iPod launched

3G network

ASOS founded

1940-69 1970-99 2000-14

Amity Insight October 2014 3

Driving the shift: the three Ps

Source: International Telecommunications Union

Mobile phone subscriptions worldwide

Number of Mobile Phone Subscriptions (millions) (LHS)

Global Mobile Phone Subscribers per 100 Inhabitants (%) (RHS)

Developed World Mobile Phone Subscribers per 100 Inhabitants (%) (RHS)

Emerging Market Mobile Phone Subscribers per 100 Inhabitants (%) (RHS)2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

140

120

100

80

60

40

20

0

Pace: increased openness and speed of networks

There is an on-going technological shift in the global connection base, driven by the improving breadth and speed of networks. This is increasing the rate of adoption in digital technologies within developed economies, such as Japan and the US, where high-speed access is present. These higher speeds are transforming consumer demand for service and

content, with video now one of the fastest-growing categories on the internet. The Cisco Visual Networking Index forecasts that over two thirds of global mobile traffic will be video-based by 20187.

Mobile broadband has a greater positive impact than fixed-line broadband, particularly in emerging markets, and a 10% increase in mobile broadband penetration yields a 1.4% increase in GDP for low-to-middle income countries8.

Source: Akamai

Average actual fixed-line residential broadband speeds (Mbps)

Japan

Germany

United States

China

UK

Brazil

India

2008 2009 2010 2011 2012 2013

14

12

10

8

6

4

2

0

Act

ual fi

xed-

line

dow

nloa

d sp

eed

in m

egab

its p

er s

econ

d

Proliferation of communication devices

The proliferation of technologies has advanced at an extraordinary rate as connectivity and affordability continue to improve at every level of society. In the first decade of the 21st century, the number of mobile phone subscriptions across the world increased from 750 million to 5.3 billion. It is now estimated to be above 6.5 billion. By the end of 2014, due to multi-SIM ownership, the Cisco Visual Networking Index predicts that the number of mobile-connected devices will exceed global population5.

The rapid adoption of these devices has been driven by the evolution of the mobile phone, with the smartphone becoming the most popular default form of handset. This is coupled with the introduction of new product categories such as tablets, all of which provide users with ubiquitous connectivity and the ability to personalise their devices. Mobile phones are also the preferred method of communication in emerging markets, where subscriptions have risen at a 20% compounded annual growth rate since 20056, driven largely by falling hardware prices and rising incomes.


Source: Internet World Stats. Data as at June 2012

Penetration of the internet worldwide

The rate at which the internet has been adopted as a common form of technology is unprecedented. Radio had been in existence for 38 years before user numbers reached 50 million. Television took 13 years to achieve the same feat, and 16 years had passed before 50 million people were using the personal computer (PC)9. The internet took just four years to surpass that benchmark10 and the pace of adoption has since continued at a tremendous rate. The resulting impact is that in one generation, the majority of the world’s population will have transitioned from having close to no access to unfiltered information, to having the ability to access all the information ever created digitally through a device that can fit in the palm of their hand.

At the beginning of the millennium, global internet penetration stood at 5%. By the end of 2013, over 34% of the world’s population had regular access. It is estimated that, by 2030, 50% of the global population will have access to the internet11.Thus far, the increasing levels of adoption have been driven by developed markets, with penetration approaching 80%, but the next wave of adoption will be led by emerging markets, where penetration rates remain well below the global average. To further increase the competitiveness of their economies, the so-called BRIC countries (Brazil, Russia, India and China) will need to increase access to the internet for their populations.

For a given level of total mobile penetration, a 10% substitution from a 2G network to 3G network increases GDP per capita growth by 0.15 percentage points12.

Country Internet Users Penetration % of Global Internet Users

China 538.0m 40.1% 22.4%

United States 245.2m 78.1% 10.2%

India 137.0m 11.4% 5.7%

Japan 101.2m 79.5% 4.2%

Brazil 88.5m 45.6% 3.7%

Russia 68.0m 47.7% 2.8%

Germany 67.5m 83.0% 2.8%

United Kingdom 52.7m 83.6% 2.2%

France 52.2m 79.6% 2.2%

Nigeria 48.4m 28.4% 2.0%

The world’s largest internet populations

5. Cisco, ‘Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2013-2018’ page 2 www.cisco.com/c/en/us/solutions/collateral/service-provider/visual-networking-index-vni/white_paper_c11-520862.html 5 February 2014

6. International Telecommunications Union ‘Key ICT Statistics 2005-2014’ http://www.itu.int/en/ITU-D/Statistics/Pages/stat/default.aspx 2014

7. Cisco, ‘Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2013-2018’ page 3 www.cisco.com/c/en/us/solutions/collateral/service-provider/visual-networking-index-vni/white_paper_c11-520862.html 5 February 2014

8. GSMA ‘The Mobile Economy 2014’9. Mary Meeker and Sharon Pearson, ‘Morgan Stanley U.S. Investment Research: Internet

Retail’ Morgan Stanley http://www2.ufp.pt/~lmbg/formacao/inetRetail1.pdf 28 May 199710. Kofi A. Annan ‘World Telecommuncication Day: Message from Kofi A. Annan’ International

Telecommunication Union http://www.itu.int/itunews/issue/2001/04/wtd.html April 200111. European Union Institute for Security Studies ‘Citizens in an Interconnected and

Polycentric World’ European Union 200112. Deloitte ‘What is the Impact of Mobile Telephony on Economic Growth?’ November 2012


Infrastructure of the Digital PlanetThe main factors that help to support and develop the infrastructure of the digital planet are shown below.

Microprocessors (Intel, ARM)

A silicon chip that contains a central processing unit (CPU – the brains of the computer where most of the calculations take place).

Networking (Cisco, Ericsson)

A network is a group of two or more computer systems linked together. Equipment providers manufacture products that enable users to send and receive voice, video and data over a physical connection.

Internet & The Cloud (Google, Amazon, Salesforce)

Storing and accessing data and programs over the internet instead of from your computer’s hard drive or a local server.

To achieve this, cloud computing uses networks of large groups of servers typically running low-cost consumer PC technology with specialised connections to share data-processing tasks.

Mass Data Storage (EMC, NetApp)

Physical or virtual infrastructure used to house computer, server and networking systems and components to meet the vast IT needs of companies.

Software (Oracle, SAP)

Software is often divided into two categories:

Systems software includes the operating system and all the utilities that enable the computer to function.

Applications software includes programs that people use in their everyday lives. For example, word processors, spreadsheets and database management systems fall under the category of applications software.

Servers (HP, IBM)

A computer or a device on a network that manages network resources. There are many different types of server that perform a varying amount of tasks ranging from file server (storing files), print server (managing printers on a network) or a database server (processes database queries).


The impact on industry

Retail – changing what we buy and where we buy it

The rise of e-commerce and m-commerce has made it difficult for many of the traditional ‘bricks and mortar’ retailers to maintain their profitability. Conventional retail channels were based on store location, shop floor optimisation and advertising or in-store offers to entice clientele. In contrast, digital

commerce has limited location costs, with warehousing and website maintenance the core overheads. Conventional retailers have been forced to close unviable outlets, open fewer new stores and ramp up investments in their online-based infrastructure.

Royal Mail has adjusted its business model and utilised its existing mail network to take advantage of the fast growth in e-commerce and parcel delivery. The company accounts for approximately 53% of parcel delivery volumes in the UK13.

HMV entered administration in 2013, as a lack of investment in its online offering and diversification into other ailing industries left the company unsuitably positioned for a dramatic shift in consumer demand towards online content.

“Downloadable music is just a fad and people will always want the atmosphere and experience of a music store.”

Steve Knott, Managing Director of HMV14

Digital Transition and Digital Dud

Digital Pioneer and Digital Dud

Digital Dud

Wolters Kluwer is a Netherlands-based global publisher of professional information services which has transformed into an online information service provider, making information accessible in numerous ways including portals, online databases and e-publishing, software and smart device applications.

Hibu (formerly Yell Group), the publisher of the UK’s Yellow Pages, failed to capitalise on the transition to digital, establishing its first website only in 2010. With plummeting sales and a business model based on acquiring other print-based directory groups, the firm fell into administration in 2013.

Advertising and Media – reaching the target audience

Digital technologies have led to the development of new platforms for advertisers and the wider media industry. Internet advertising has been the fastest-growing marketing platform in recent years and in 2012 surpassed newspaper advertising. In the past, advertisers often struggled to target specific

demographics and the resulting effectiveness of a campaign was difficult to ascertain. Now with more ways to capture information about the end-consumer and more avenues to target the desired clientele, agencies are becoming increasingly engaged in other areas such as product development and e-commerce.

13. Andy Chu and Tom Sykes ‘Royal Mail: Initiation of Coverage’ Deutsche Bank 4 April 201414. Philip Beeching ‘HMV: How the Top Dog Lost its Bite’ http://www.bbc.co.uk/news/entertainment-arts-21028803 13 January 2013

Digital Transition

Digital Pioneer

Digital Dud


Philips is transitioning itself from consumer electronics to a healthcare company. It has teamed up with Salesforce, a cloud-computing company in the US, to offer online management of chronic diseases.

Samsung’s Galaxy S5 smartphone now comes with a unique built-in heart rate monitor that allows information to be stored and reviewed via the Samsung S Health app.

Healthcare – saving lives and money

Healthcare digital innovations could significantly reduce future costs for healthcare systems and improve outcomes for patients. Databases and software applications delivered via mobile phones and tablets are helping to speed up the

diagnostic process, improve patient monitoring and reduce hospital and physician visits. Digital technology is helping to change the traditional interface between patients and doctors.

Telecommunications – connecting the planet

Higher speed networks and the proliferation of more advanced mobile devices are allowing users to adopt an expanding range of services and applications. This is driving a rapid increase in data traffic globally and has led to a significant shift in revenue

sources for telecommunications firms. From 2013 to 2018, the Cisco Visual Networking Index anticipates that global mobile data traffic will increase approximately eleven-fold and outpace fixed data traffic growth by a factor of three15.

BT Group announced in 2014 that it would be re-entering the UK mobile market since selling its Cellnet O2 business to Telefonica in 2005. The move complements BT’s existing offerings in fixed-line and media services, providing the company with the opportunity to convert its existing installed base to mobile and entice others to the convenience of a bundled product offering.

Vodafone began life as Racal Strategic Radio Limited in 1984, and has since gone on to become a global telecoms leader. In addition to developing M-PESA, the company has developed M2M (machine to machine) communications, which is seen as the driver behind the ‘Internet of Things’ (IoT). The technology will be used to develop smart mobility, buildings, cities and business.

Digital Transition and Digital Pioneer

Digital Transition and Digital Pioneer

Digital Transition

Digital Pioneer

Digital Transition

Digital Pioneer


15. Cisco ‘Visual Networking Index Forecast Projects Nearly 11-Fold Increase in Global Mobile Data Traffic from 2013 to 2018’ http://newsroom.cisco.com/release/1340551/Cisco-Visual-Networking-Index-Forecast-Projects-Nearly-11-Fold-Increase-in-Global-Mobile-Data-Traffic-from-2013-to-2018 5 February 2014

16. RepRisk Insight ‘Technology & Electronics’ page 4, January 201417. Pippa Norris ‘Digital Divide: Civic Engagement, Information Poverty, and the Internet

Worldwide’ Cambridge University Press 2001

18. Bobby Chiu, Bowen Gu and Esther Tsang, ‘Industry Analysis: Technology Hardware and Equipment’ Sustainalytics February 2014

19. RepRisk Insight ‘Technology & Electronics’ page 4, January 201420. RepRisk Insight ‘Technology & Electronics’ page 5, January 2014

Environmental Social and Governance (ESG) issues

The mobile phone is the rapidly adopted consumer technology in the history of the world, with over 6.8 billion mobile phones and counting in circulation16. This has inevitably led to ESG issues coming to the forefront:

Digital poverty: The digital shift is exacerbating inequalities between the information rich and poor, creating the so-called ‘digital divide’. Those with income, education and e-skills are able to access plentiful amounts of information at a low cost and high speeds, while others are left behind17. Initiatives have been launched to address this problem, but disparities in the distribution of information and communication technologies are deep-seated, suggesting that they will not easily be eradicated or ameliorated.

Data snooping: Increased surveillance in public places and an expanding number of ways in which data can be captured is blurring the lines between private and public security.

Vodafone revealed the extent of government surveillance in its Law Enforcement Disclosure Report in June 2014:

n Governments in 29 countries in which it operates ‘snoop’

n In most countries, requests for information are required, but six ‘undisclosed’ countries have ‘direct & permanent’ access

n Direct access is mandated in some countries for security

n UK made 514,608 call requests in 2013 and 2,760 interception requests.

Environmental impacts: The development of new technologies should reduce our demand for physical content such as hard media and thus lower the environmental impact

of production. However, the rise in technology manufacturing and the energy required to run data centres create significant environmental impacts across the digital value chain.

Carbon emissions: It is estimated that the IT sector overall accounts for 2% of global carbon emissions and data centres account for approximately 14% of the industry’s footprint18.

Electronic waste: The accelerating rate of hardware replacement is increasing the amount of electronic waste at the end of the product life cycle. It makes up 5% of all municipal solid waste worldwide19.

Conflict minerals: The technology industry has come under greater scrutiny over the sourcing of minerals used in electronic products. The most common metals include aluminium, iron, copper, nickel, zinc, gold, cobalt, gallium, tin, tantalum, tungsten, beryllium, indium, platinum, palladium and rare earths. Mining for these metals has been linked directly to violence and human rights violations, notably in the Democratic Republic of Congo.

Water use: It is estimated that the water footprint for one mobile phone is nearly 1,000 litres20. Many of the largest users of water are often located in highly water-stressed areas, exacerbating the situation.

No data

Source: United Nations Global Development Goals Indicators

49.74 - 89

25.36 - 49.74

12.55 - 25.36

4.54 - 12.55

0 - 4.54

The Global Digital Divide

Scale: Computers per 100 people


Security: The digital economy relies on trust and integrity, with hundreds of millions of people creating and consuming a vast amount of content every minute, in an online universe not bound by terrestrial laws.

n The European Commission estimates that every day 1m people fall victim to online crime

n UK Government estimates put the cost of digital crime at £27bn per annum.

The dark net: This term is used to refer to parts of the internet that are hidden and are difficult to access without specialist software. Using software products such as TorBrowser, users are able to browse hidden sites on a network under total anonymity. Criminals are subsequently taking advantage of the secrecy that the dark net provides to engage in illegal activity, such as sharing files containing obscene images and to advertise the sale of illegal drugs and firearms.

Human rights: The Freedom House 2013 report ‘Freedom on the Net’ found:

n 34 out of 60 countries assessed experienced a ‘negative trajectory’ of access – e.g. Vietnam and Ethiopia

n 16 out of 60 countries assessed experienced a ‘positive trajectory’ – e.g. Morocco and Burma

n Government blocking of material is widespread and increasing

n Bloggers, activists and government opponents are increasingly persecuted for their online activities

n Of 60 countries, only 17 were assessed as ‘free’; 29 were judged as ‘partly free’ and 14 as ‘not free’.

Cost of different types of cyber crime to the UK economy

£10,000M

£9,000M

£8,000M

£7,000M

£6,000M

£5,000M

£4,000M

£3,000M

£2,000M

£1,000M

£0Onlinefraud

Scareware Identity theft

IP theft Espionage Customer data loss (reported)

Online theft from business

Extortion Fiscalfraud

Source: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/60943/the-cost-of-cyber-crime-full-report.pdf


Freedom on the Net 2013 assessed 60 countries around the globe. The project is expected to expand to more countries in the future.

Country not assessed in 2013

Not Free

Partly Free

Free

Freedom on the net


Value chain

From an investment perspective, there are many parts of the value chain that are available for responsible investors. The investment team avoided investing in overvalued and unsustainable businesses during the dotcom bubble in the late 1990s and early 2000s. The team is focused on seeking out companies with business models that are leading the way or transitioning to the digital economy. Avoiding the duds will

be of equal importance as finding the pioneers and those companies adapting their businesses. We believe that companies involved in building the digital infrastructure of the future will be in strong positions as further technological innovations lead to acceleration in the digital revolution. Examples of companies currently held in the Amity Fund range include Cisco, Sage, Intel and Ericsson.

Software

Servers

Networking

Semiconductors Internet

Data Storage

Recreated PMS


Case study: Intel Corp

Intel Corp was founded in 1968 and introduced the world’s first microprocessor. Today, it is headquartered in Santa Clara, California, employing 107,600 people worldwide, and generated revenues of over $52 billion in 2013.

The company has built a leading position in microprocessors for servers, desktop computers and notebooks. Its industry-leading commitment to R&D has resulted in the development of a new suite of microprocessors that exceed the power capabilities of its competitors. Management have responded positively to structural changes in the personal computer, mobile and server markets in recent years. The company continues to make major investments in new product lines for its tablet, smartphone and Internet of Things (IoT) segment, with the aim of becoming more competitive in power efficiency. We believe that in the long term, the firm will be able not only to leverage its market-leading position as tech innovators, but also to develop its impressive ESG credentials to deliver sustainable returns for shareholders.

ESG highlights

n Industry leader on conflict minerals, with no products containing tantalum, tin, tungsten or gold derived from sources that benefit armed groups in the Democratic Republic of Congo or adjoining countries

n Since 2008, Intel has been the largest voluntary corporate purchaser of green power in the United States

n As at the end of 2013, GHG emissions had declined by 31% in absolute terms from a 2008 base

n 2008-2013, Intel invested over $89m in energy efficiency initiatives, which has generated cumulative energy cost savings of $168m to the end of 2013

n In 2013, 7.6bn gallons (87% of total water withdrawals) were sent to municipal water treatment operations for reuse

n 44% of chemical waste is recycled or reused and only 4% is sent to landfill

n Intel has more than 200 programmes in over 70 countries that provide professional development for teachers, enabling access to digitised content

n Intel’s ‘Learn Programme’ (designed to provide support and resources for young learners in developing economies) has reached c.900,000 girls and women across 18 countries since its launch in 2004.


Coming next: Digital Planet: Big data – small world

Our next Amity Insight (January 2015) will look at Big Data and the ability to harness information in novel ways that provide insights into the way goods and services are sold and targeted.

n What is data and what makes big data different?

n How fast is it growing and what is driving growth?

n How do we value data, and how is it being used by business, government and society?

n Who are the winners and losers and what are the ethical dilemmas?

View from the top

We are undoubtedly living through the third great social and economic revolution in modern times. Just as the agricultural and industrial revolutions had a profound effect on the global means of production, so the technological and digital revolution is affecting how we buy and sell, communicate and behave. Such is the overwhelming omnipresence of technology in modern life that we have committed – for the first time – two of our Amity Insights to exploring the subject in depth.

While the digital planet will undoubtedly empower and transform millions of lives for the better, allowing those in developing countries to skip a generation of old technology (such as landlines), it also raises some profound challenges that are new and evolving. Cybercrime, security and the blurring of private versus public are exercising considerable attention, while the environmental consequence of the huge uptick in energy needs required by data centres and video streaming is still to be addressed in terms of its impact on climate change. There are human rights challenges too: internet repression and government snooping – especially in an age of terror – raise control concerns for users and libertarians alike.

As responsible investors we are positive about the extraordinary potential of the ‘digital planet’ for individuals and society. The Internet of Things will allow technological control via hubs of all devices and domestic appliances for the first time. In developing markets, mobile has revolutionised and empowered individual entrepreneurship as never before.

We are alive too to the challenges and risks. We set out the range of ethical dilemmas – many of them new and invisible – that the digital revolution presents. We will engage with companies on the major risks, and seek to understand how these can be managed in difficult and challenging environments. As always we seek investment opportunities via the digital value chain, which is broad and deep. We look forward to receiving your thoughts and comments.

Neville White Head of SRI Policy & Research


Why Ecclesiastical?

n The backing of an award-winning team

n Over 20 years of experience of socially responsible investing (SRI)

n Funds that are both positively and negatively screened

n A stable investment team with a wealth of experience spanning many years

n A comprehensive in-house SRI research function

n An independent panel that reviews investment decisions

n A robust socially responsible investment process

n A pride in our independent analysis. We’re not afraid to adopt contrarian positions and are in favour of long-term investment horizons

n A consideration of the preservation of capital as our primary responsibility, preferring absolute returns over relative performance

n Fund Managers at Ecclesiastical are unconstrained by rigid stock lists, permitting more flexibility to take advantage of good-value opportunities as they present themselves

n Decision-making for the long term, as frequent trading increases costs and decreases returns

n Avoidance of companies materially involved in alcohol production, gambling operations, pornographic and violent material, tobacco production, testing animals for cosmetic or household products, supporting oppressive regimes or strategic weapon production

n Actively seeking out companies with a record of involvement and good performance in terms of business practices, community relations, corporate governance, education, environmental management, healthcare, human rights, labour relations and urban regeneration

Amity Insight October 2014 15Amity Insight October 2014 15

Ecclesiastical Investment Management Limited (EIM) Reg. No. 2519319. This company is registered in England at Beaufort House, Brunswick Road, Gloucester, GL1 1JZ, UK. EIM is authorised and regulated by the Financial Conduct Authority and is a member of the Financial Ombudsman Service and the Investment Management Association.

We pride ourselves on our support for IFAs. For more information, fund factsheets or how to invest, please contact us:

Meet the team

Please note that past performance is not a reliable indicator of future results and that the value of investments can fall as well as rise and you may get back less than the amount invested. Source & Copyright: CITYWIRE, for the three years to 30 September 2014 based on risk-adjusted performance.

You’ll find us on most platforms, including:

Sue RoundDirector of Investments and Amity UK Fund ManagerSue is the UK’s longest-serving retail SRI Fund Manager. With the benefit of extensive experience, she has made the Amity UK Fund one of the leaders in the increasingly important socially responsible investment sector.

Andrew Jackson UK Equity Growth Fund Manager

Andrew joined Ecclesiastical in 2003 and manages the UK Equity Growth Fund. His wealth of experience includes roles at Canada Life and Lloyds Investment Managers. Andrew is AAA-rated by Citywire.

Ketan Patel, CFASenior Socially Responsible Investment AnalystKetan began his career at JP Morgan in 1998. He moved to Clerical Medical (now Insight Investment) as an Equity Analyst. Ketan has worked for Ecclesiastical for ten years and is a CFA Charterholder.

Chris Hiorns, CFA Amity European Fund Manager and co-manager of the Amity Sterling Bond FundChris started working for Ecclesiastical in 1996 and has been a CFA Charterholder since 2004.

Neville White Head of SRI Policy & ResearchBefore joining Ecclesiastical in 2010, Neville was responsible for developing and managing global corporate governance proxy voting with CCLA Investment Management. Prior to this, he worked for the Church Commissioners, latterly as Secretary to the Church of England’s Ethical Investment Advisory Group.

Thomas Fitzgerald Investment AnalystThomas joined Ecclesiastical in 2011 after completing a BSc in Economics and Business Management at Oxford Brookes University. He supports the fund management team by providing detailed company research and analysis. Thomas is studying for the CFA.

Peter Cameron CFA Assistant Fund ManagerPeter joined Ecclesiastical as an Assistant Fund Manager in 2014. Previously, he worked as an Equity Analyst within the Quant Solutions Team at Aviva Investors. He also held positions within SRI, performance and portfolio risk at Aviva. He is a CFA Charterholder and has a BSc in Mathematics and a MSc in Corporate Governance & Ethics.

Robin HepworthChief Investment Officer, Amity International Fund Manager and co-manager of the Amity Sterling Bond FundRobin has been with Ecclesiastical for 24 years. He is recognised as one of Citywire’s top 10 Fund Managers of the past decade and is also a Trustnet Alpha Manager, placing him in the top 10% of all UK unit trust and OEIC managers.

Phone

0845 604 4056Fax

020 7528 7365Email

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www.ecclesiastical.com/ifa

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