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The Philanthropy Conference:EY GibraltarHow is the asset management industry catering for investors wanting sustainable returns from ethical investments?Gillian Lofts17 November 2013About color themesChoose the appropriate design theme for your presentation. The first two options on the design tab are correct EY themes, these two are the only ones that should be used. (1) dark backgrounds for onscreen; (2) light backgrounds for handouts.1!2About color themesChoose the appropriate design theme for your presentation. The first two options on the design tab are correct EY themes, these two are the only ones that should be used. (1) dark backgrounds for onscreen; (2) light backgrounds for handouts.1!229 November 2013Page 0IntroductionThe Philanthropy Conference: EY GibraltarPage 1We will cover :

The current trends of the asset management industry and their impact on the sustainable and ethical investment worldThe significant growth of ethical investing and who is saying what about itThe root causes of this sectors emergence and exponential growth ratesHow it is being manifested day-to-day and what the future holds

Investor demand for sustainable and ethical products has grown significantly in the last two decades. This presentation analyses the change in demand of the investor and the response by the industry About color themesChoose the appropriate design theme for your presentation. The first two options on the design tab are correct EY themes, these two are the only ones that should be used. (1) dark backgrounds for onscreen; (2) light backgrounds for handouts.1!2Consumer demand for sustainable and ethical products has grown significantly in the last two decades. This presentation analyses the behavioural change of the consumer and the response by both the industry and EY.The asset management industry is in the centre of a rapidly changing global financial spectrum. Stakeholders from across the board are simultaneously experiencing and demanding change. As a result of a combination of factors, social return on investment is being considered at an equal level to traditional financial returns.

The drivers for this include : Secular changes such as resource scarcity, demographic shifts and climate change

The 2008 financial crisis leading to the imperative to re-build trust in the financial services industry

A continuum of corporate, organisation, government scandals

.are re-defining societal expectations, public policies, regulatory frameworks, business environments and investment outcomes..

This market will long continue to experience such exponential growth. Corporations have the responsibility of using their skills and knowledge to best equip investors in where their money can be most impactful, whilst still retaining a commercial benefit.This speech will address the current trends in the asset management industry and how they have caused and reacted to the significant growth of ethical investing. This will lead to discussing the root causes of this phenomenal transformation and finally what it means for individuals and companies both today and in the future.

29 November 2013Page 1Our FS clients are responding to sustainability as a strategic issue that presents material risk as well as opportunity..As the foundation for all other industries, FS is pivotal to enabling sustainable economic growth. However, until recently, it has lagged behind other industries in addressing sustainability as a strategic issue. The four issues below demonstrate how this is changing:Three critical factors driving the importance of sustainability in Financial Services institutions:Massive financing requirement to deliver the transition to a low carbon circular economyCrisis of trust across the industry requires focus on rebuilding reputations around socio-economic contributionMaterial un-priced social and environmental risks in asset portfolios and lending decisionsBusiness growth strategyGovernment mandateSolution v. responsibilityInternational standardsAbout color themesChoose the appropriate design theme for your presentation. The first two options on the design tab are correct EY themes, these two are the only ones that should be used. (1) dark backgrounds for onscreen; (2) light backgrounds for handouts.1!2The 2008 financial crisis leading to the imperative to re-build trust in the financial services industry

Secular changes such as resource scarcity, demographic shifts and climate change

A continuum of corporate, organisation, government scandals

.are re-defining societal expectations, public policies, regulatory frameworks, business environments and investment outcomes..

Business growth strategy: Our clients are incorporating sustainability into their growth strategies (eg. HSBC, Barclays & Aviva) and are reporting favourable results from sustainable initiatives.

Government mandate: Mandatory corporate sustainability (CS) reporting is being discussed by UK government and the EU

International standards: Countries such as France are embracing ISO 26000 (CS management guidelines) which indicates credibility of international standards. Brazil Central Bank are requiring the largest banks to disclose environmental risks of what they finance

Solution v. responsibility: Some companies are enhancing their responsibility by striving for solutions to solve social and economic sustainability issues (e.g. Lloyds, Bank of America, BNY Mellon).

2Global asset management landscapePage 3

Americas*Data for: 2011 (2010) (2009)AUM (US$ trillion): 34 (34) (31)% global share: 54% (53%) (50%) No. of managers: 274 (266) (255)

Top markets by 2011 AUM*US: US$ 30.2 trillionCanada: US $3.0 trillionBrazil: US$ 0.7 trillionEMEA*Data for: 2011 (2010) (2009)AUM (US$ trillion): 22 (24) (25)% global share: 35% (37%) (40%)No. of managers: 156 (153) (173)

Top markets by 2011 AUM*UK: US$ 4.6 trillionGermany: US$ 4.4 trillionFrance: US $4.4 trillionAsia-Pacific*Data for: 2011 (2010) (2009)AUM (US$ trillion): 7 (7) (6)% global share: 11% (10%) (10%)No. of managers: 70 (81) (72)

Top markets by 2011 AUM*Japan: US$ 5.3 trillionAustralia: US $1.0 trillionSouth Korea: US$ 0.5 trillionAmericasOutflows from money market funds and equity funds persistent since 2007Growth in fixed income funds and ETFs/passive fundsConcentration: 73% of the US mutual fund assets are in top 25 complexesEMEAContinued fragmentation of markets and productsPoor net flowsStructural changes and regulatory reformsAsia-PacificMajor APAC economies characterized by persistent and high economic growth in the last decadeAsia Pacific investment markets distinguished by their sheer diversity that makes each country a unique marketThey range from large, mature, domestically focused markets such as Japan and Australia, to more outward-looking, expanding markets like Hong Kong and Singapore, to the emerging giants of India and mainland China55% of the worlds top 500 asset managers are based in the US; another 31% in Europe*Source: Pensions & Investments / Towers WatsonAbout color themesChoose the appropriate design theme for your presentation. The first two options on the design tab are correct EY themes, these two are the only ones that should be used. (1) dark backgrounds for onscreen; (2) light backgrounds for handouts.1!2Despite all the noise around the explosive growth in Asian markets, US managers still represent 55% of the largest 500 AMs globally, European managers represent 31% and Asian managers continue to represent about 10%. 29 November 20133The asset management industry is facing strong upheaval and changeEMEIA FSO Asset Management UpdatePage 4Brave new worldChronically low interest rates, inflation risks, QE and European restructuring are all contributing to Risk on/Risk off becoming the new normThe industry finds its voiceRegulation abates but industry engagement with government, policy makers, tax authorities and regulators reaches a new highLook after the poundsWith costs going up and revenues going down, managers need a fundamental re-think of their cost models and sacred cowsSearch for scale/leverageExpansion into new markets Investment in new product is risingShifting asset class dynamicsBuilding new distribution channelsCreating new distribution JVs/partnerships Potential for consolidationThe banking sell off continuesFocus on costsRegulation alone is expected to cost the industry $52Bn-$78Bn in the next 3 yearsRetail churn is estimated at 20-30% paOutsourcing new areas such as middle office and manufacturingStandardising IT platformsInvesting in the distribution value chainEstablishing shared services infrastructureProduct portfolio managementReview of value propositionBarriers to entry are going up and innovation in the industry will suffer as a resultRevenue re-plenishment is criticalBuilding customised solutions oriented towards specific outcomes/timeframesIncreased transparency for investorsEvolving revenue modelsShifting sandsInvestors are seeking high yielding, low risk solutions and new sources of alphaWith regulations reinforcing distribution as king of the AM world this is an increasing area of strategic focus Pension bluesThe pensions gap in Europe is estimated to be anywhere north of E2TnSupply of At retirement and decumulation product is weakInnovate to surviveLeading asset managers are orienting around customers, looking to provide holistic solutions with an integrated service modelAbout color themesChoose the appropriate design theme for your presentation. The first two options on the design tab are correct EY themes, these two are the only ones that should be used. (1) dark backgrounds for onscreen; (2) light backgrounds for handouts.1!229 November 2013Page 4OverviewHow has the asset management industry responded to consumer demand for sustainable and ethical investment products?The Philanthropy Conference: EY GibraltarPage 5What?Why?How?Therefore About color themesChoose the appropriate design theme for your presentation. The first two options on the design tab are correct EY themes, these two are the only ones that should be used. (1) dark backgrounds for onscreen; (2) light backgrounds for handouts.1!2So, how has the asset management industry responded to consumer demand for sustainable and ethical investment products? Is the role of the industry to enhance the knowledge, know-how and understanding of institutional and individual investors?

According to the US Centre for Sustainable Investing Foundation, the Top 10 ESG Considerations in 2012 for institutional investors:SudanIranTerrorist / repressive regimesMacBride principles for Northern IrelandExecutive payBoard issuesClimate change / carbonLabourPolitical contributionsUnderstanding the trends, we can now look at the two well-known acronyms in the world of sustainable investing, SRI and ESG.SRI stands for socially responsible investing whilst ESG represents environmental, social and governance factors in investment decisions. In essence, they both deal with the same concepts and ideals, namely the allocating funds to investments which meet certain ESG criteria or investing with a long term view not just focussed on results - industries such as oil, mining and tobacco, which are often seen as the traditional yield givers. However, they do come at the issue from different perspectives. SRI implies motivation behind the investment is to be responsible whilst ESG considerations are part of the process assessing whether an investment is socially responsible. ESG can be further adapted to many concepts, such as ESG factors, ESG investing and ESG integration.The question often on many peoples minds is whether or not both SRI and ESG are truly for real. Whether they are merely a popular fad, inspired by the ethical mind-sets and strong beliefs of the millennials. Are SRI and ESG mere rhetoric and myth, or are they significant, powerful and sustainable forms of high-return investments?

To answer these questions, lets look at three simple questions.Firstly, what. What ethical or sustainable investing actually means or implies. What phrases such as socially responsible investing and environmental social governance truly represent. What is happening in the asset management industry as a whole. What events have caused the change in demands from investors and consumers alike.Moving on to the next question, why. Why the asset management industry is interested in sustainable and ethical investing. Why investors are encouraging their fund managers to look beyond the basics of high or secured returns. Why entire communities are pressurising governments to act in regulating the industry.Having understood both the context for this trend and the reasons behind it, in the following section I will explain how it is being manifested. This will include looking at a variety of options for investors looking to ethically or sustainably invest and then two case studies showcasing the benefits of doing so.Finally, the conclusion therefore. As a result of what is happening, why it is happening and how it is happening, I will illustrate what that means for investors, customers and managers in the future.

29 November 2013Page 5The EvidenceThe Philanthropy Conference: EY GibraltarPage 6UKUS1989199m1995$600m201211bn20123.7tnEthical Investing over the past 20 yearsTimeline of ethical investing in the UK

1984

1990 2000

2000

2001

2009Friends Provident Stewardship Fund launched

Over 50 ethical funds emerge with >3bn invested

Legal requirement for occupational pension scheme disclosure

FTSE4Good Indices launched

Yourethicalmoney.org launchedWorld2010$10.1tn2002$2.6tn

About color themesChoose the appropriate design theme for your presentation. The first two options on the design tab are correct EY themes, these two are the only ones that should be used. (1) dark backgrounds for onscreen; (2) light backgrounds for handouts.1!2To look at some basic statistics, there has been a rise of global assets incorporating ESG from two point six trillion dollars in 2002 to ten point one trillion dollars in 2010. More specifically, in the UK, between 1989 and 2012, ethical investing increased from two hundred million pounds to eleven billion. During an almost identical period, the US saw an even greater proportional rise. The figure today, which stands above three point five trillion dollars, represents more than one of every nine dollars under professional management in the US today.

Reviewing the history in the UK, as far back as 1984 saw the first ethical unit trust launched the Friends Provident Stewardship Fund, to meet growing consumer demand. In the 1990s, the UK saw more than 50 ethical funds such as Jupiter, Neptune and Quadris emerge, with over three billion pounds invested. The turn of the century witnessed government influence, with a law passed in the UK that occupational pension schemes were obliged to disclose if they took account of ESG factors when making investment decisions. Just one year later, the FTSE4Good Indices was launched, providing consultants, asset owners, fund manager, investment banks, stock exchanges and brokers a valuable tool for research, reference and benchmarking. Finally in 2009, the UKs first independent, non-profit website on ethical money was launched yourethicalmoney.org EY believe that currently, ethical or sustainable investing is being mis-understood by virtue of how it has been branded. Despite the numbers, many people are still both cautious and cynical. As will be demonstrated later, in many evidenced cases, this form of investing has out-performed and out-classed traditional asset types. There is no evidence to suggest that a fund or asset class cannot be both ethical and productive. True sustainable investing is thinking about how both the individual or institutional investor can thrive tomorrow and further into the future before deciding where to invest today. Of course if it were that simple, we wouldnt be having this conversation. As with all new industries, those still progressing from their embryonic stages, there are risks. One is the current range of choice when it comes to investment. Although this is fast-growing, it remains far more limited than regular investing. This can lead to a lack of liquidity in the overall market, due to fewer players and involvement.While it currently represents a mere fraction of total global investing, due to the numbers, the trends and underlying reasons for its existence, the coming years and decades will see the emergence of this as a force for serious capital generation, and not simply a niche option. Firms will soon require a social license to operate in many markets meaning an acceptance by local communities that the organisation complies with supporting the area whilst going about its daily activities.

Mainstream investors still underestimate the impact of long term sustainability trends on a companies ability to suceed in the long term.

This can lead to market inefficiencies that investors who focus on sustainability can explore

29 November 2013Page 6Investor behavioural driversThe Philanthropy Conference: EY GibraltarPage 7

Building a better working world

Consumer demand and conscience

Business Scandal

Return on investment

Mass / social media

About color themesChoose the appropriate design theme for your presentation. The first two options on the design tab are correct EY themes, these two are the only ones that should be used. (1) dark backgrounds for onscreen; (2) light backgrounds for handouts.1!2Having looked into the current trends, how the market as changed and what is happening today, the question still remains as to why this has all come about. Why the industry as a whole has seen the change in numbers shown above. Why investors are demanding a different offering from their fund managers and why customers are pressurising the institutional investors representing them.There are four key factors which have led to the emergence and subsequent prominence of ethical and social investing.They are business scandals or catastrophes, the consumer demand, conscience and awareness, return on investment and mass (social) media. The final factor makes up a part of each of the first three, providing a platform for unprecedented levels of knowledge sharing.

29 November 2013Page 7Ethical, social and sustainable investment opportunitiesThe Philanthropy Conference: EY GibraltarPage 8Crowd fundingMicrofinanceGovernance/stewardshipPeer-2-Peer lendingGreen fundsIntegrated reportingImpact investingUN PRICorporate philanthropy

About color themesChoose the appropriate design theme for your presentation. The first two options on the design tab are correct EY themes, these two are the only ones that should be used. (1) dark backgrounds for onscreen; (2) light backgrounds for handouts.1!2With the knowledge of the current state of both the asset management and ethical investment industries, coupled by the underlying causes of the trends we can now look at how this is being manifested in todays markets.This slide demonstrates a number of examples how ethical, social and sustainable investing is currently manifesting itself. These examples cover a wide range of topics, including individual and corporate investing, as well as internal company function.

29 November 2013Page 8UN Principles for Responsible InvestingThe Philanthropy Conference: EY GibraltarPage 9

The United Nations Principles for Responsible Investment (UN PRI) Initiative is an international network of investors working together to put the six Principles for Responsible Investment into practice.To date, a total of 272 asset owners have signed up to the UN PRI, This accumulates to approximately thirty five trillion dollars.Institutions involved include Aviva, HSBC and BlackRock. Developed by a group of large institutional asset owners in 2005, they were launched by Secretary-General Kofi Annan at the New York Stock Exchange in April 2006. About color themesChoose the appropriate design theme for your presentation. The first two options on the design tab are correct EY themes, these two are the only ones that should be used. (1) dark backgrounds for onscreen; (2) light backgrounds for handouts.1!2The United Nations Principles for Responsible Investment (UN PRI) Initiative is an international network of investors working together to put the six Principles for Responsible Investment into practice.

These principles are:

- We will incorporate ESG (Environmental, Social and Governance) issues into investment analysis and decision-making processes. - We will be active owners and incorporate ESG issues into our ownership policies and practices. - We will seek appropriate disclosure on ESG issues by the entities in which we invest. - We will promote acceptance and implementation of the principles within the investment industry. - We will work together to enhance our effectiveness in implementing the Principles. - We will each report on our activities and progress towards implementing the PrinciplesIts goal is to understand the implications of sustainability for investors and support signatories to incorporate these issues into their investment decision making and ownership practices. In implementing the Principles, signatories contribute to the development of a more sustainable global financial system.To date, a total of 272 asset owners have signed up to the UN PRI, including some of the worlds largest financial services institutions, such as Aviva, HSBC and BlackRock. This accumulates to approximately thirty five trillion dollars.PRI signatories are also part of a global network, with opportunities to pool their resources and influence to engage with companies on ESG issues, lowering costs for signatories to undertake stewardship activities. The Initiative also supports investors to work together to address systemic problems that, if remedied, may lead to less volatile, accountable and sustainable financial markets that reward long-term responsible investment

29 November 2013Page 9Innovative financial industriesThe Philanthropy Conference: EY GibraltarPage 10Microfinance

KivaCrowd fundingUK Crowdfunding Association

About color themesChoose the appropriate design theme for your presentation. The first two options on the design tab are correct EY themes, these two are the only ones that should be used. (1) dark backgrounds for onscreen; (2) light backgrounds for handouts.1!2Microfinance refers to a variety of financial service targeting low income clients, which are often women. Micro-finance institutions provide these services to people who would otherwise be unable to access capital or even financial advice. The World Banks Groups main investor in microfinance, the International Finance Corporation is working with 314 microfinance institutions, providing loans in 90 countries. Their cumulative investment portfolio in microfinance exceeds three billion dollars. The most recent change in the industry is the entry of private and institutional investors such as retail banks, pension funds and private equity funds, with up to fifty specialised funds now established. The first of these institutional investors were the international banks, with Deutsche establish an MFI fund in 1998 through its philanthropic arm. Credit Suisse, Morgan Stanley and AXA are just three examples who have followed suit in recent years. One cause of this, according to Business Week, is that hedge funds, venture capitals and other big investors are seeing huge profit potential in tiny loans. Some of these investors have no particular social focus, which goes some way to demonstrating the extent of the commercial returns of this industry.

EY is working with Kiva, an organization connecting developing-world entrepreneurs needing loans with individuals willing to contribute the funds via the internet. Were donating $1m worth of services over of three years at no cost to Kiva. To date, Kiva has facilitated over US$43 million in loans from over 337,000 Kiva.org users, to 60,000 developing world entrepreneurs, including carpet weavers in Afghanistan, goat herders in Uganda and farmers in Ecuador. Kiva lenders have funded over 3 million entrepreneurs in emerging markets, of which approximately 75% going to females

Crowd funding and peer to peer lending are another form of innovative finance which help people access capital which they may otherwise struggle to do. It has become a great source of investment for entrepreneurs looking to kick-start new industries or fill gaps in existing ones. By investing in crowd-source, there are added benefits of direct involvement with where money is going but more so, it provides the opportunity for more ethical and sustainable investing. By choosing which investment to take part in, the investor can have greater control on the impact of their money. Crowd funding is a financial industry in itself, with arms such as debt-based crowd funding and equity-based crowd funding examples of ways to invest. In total, crowd funding has helped companies and individuals raise more than two point five billion dollars in 2012, expected to double this year. Earlier in 2013, a new crowd funding provider, Invested.in Alpha is being launched as an invite-only platform focussed on institutional-grade alternative investment opportunities, such as hedge funds, venture funds and securitised debt products. The aim of this company is to work with alternative asset manager in the top 10% of the industry.

EY recently hosted the UK Crowd Funding Associations autumn conference in the London office. This was to show our commitment to the industry and to start the conversations about collaboration and service provisions.Finally for both of these examples, alongside many others, EY is able to exercise its corporate philanthropy through the publication of thought leadership. This is another example of Building a Better Working World, as we look to educate our people, our clients and our communities on these important issues.

29 November 2013Page 10Integrated reportingDJSIGRIIIRCBioFamily of sustainability performance indexesSustainability reporting organisationOrganisation to aid investors and businesses to adopt IRFounded199920112010Organisations3,3005,738The Philanthropy Conference: EY GibraltarPage 11This is a very important initiative that draws together the key actors across financial, environmental and social reporting. The concept of integrated reporting is coming of age and I am delighted to support this initiative. Hans Hoogervorst, Chairman, International Accounting Standards BoardThe integration of sustainability criteria into traditional financial analysis helps provide additional insights into a companies quality of management and future performance potential to generate long lasting value to investorsAccording to the DJSI, Australia & New Zealand Banking Group (ANZ) was the leading sustainable bank in 2013. This accolade was awarded due to:Training programs developed for recruiting traditionally marginalised groupsSupport of rural industry growth in the Pacific region, where it has 40% market shareThe money minded program, over 10 years and with 200,000 participants, focused on building peoples money management skills

About color themesChoose the appropriate design theme for your presentation. The first two options on the design tab are correct EY themes, these two are the only ones that should be used. (1) dark backgrounds for onscreen; (2) light backgrounds for handouts.1!2Looking at integrated reporting, we can see a trend of incorporating sustainability related factors into financial statements, or even the creation of company statements solely concentrating on these factors, which include strategy, governance, performance and prospect, in the context of the external environment and value creation. There are three key institutions monitoring this, including the Dow Jones Sustainability Index, The Global Reporting Initiative and the International Integrated Reporting Council. The GRI is a leading sustainability reporting organisation currently has six thousand organisations it works with who have created almost twenty thousand sustainability reports. The International Integrated Reporting Council, chaired by Mervyn King, which has the view that communication about businesses value creation will be the next step in the evolution of corporate reporting. They aim to create the globally accepted integrated reporting framework.

General criteria relating to std mgt practices and performance criteria eg corporate governance, human capital development, and risk and crisis mgt.

Specific industry criteria eg climate change mfg company with complex supply chain would focus on reducing carbon footprint. FS company - would address climate change through their financial products, or innovative funding schemes that encourage the transition to low carbon economy.

29 November 2013Page 11Green fundsThe Philanthropy Conference: EY GibraltarPage 12

In 2009, South Korea dedicated a $38bn fiscal stimulus package to green initiatives1m jobs createdIndustries involved include energy, water and wasteChina, Japan, US and Brazil following suitUN objectives by 2030 according to Ban Ki Moon:

To provide access to modern energy sources for the entire global populationTo double the rate of energy efficiency improvements and finallyTo double the market share that renewables command in the global energy mix.

About color themesChoose the appropriate design theme for your presentation. The first two options on the design tab are correct EY themes, these two are the only ones that should be used. (1) dark backgrounds for onscreen; (2) light backgrounds for handouts.1!2Socially conscious funds or those actively promoting environmental responsibility.

Green funds concentrate on the environment, engaging in alternative energy, green transport, and water management all leading to sustainable living.

One example of a fund is the Green Climate Fund, acting within the framework of the UN Framework Convention on Climate Change, is aiming to raise at least one hundred billion of climate finance by 2020.

South Korea provides us with a world-leading example of national green investment. In 2009, their thirty eight billion dollar fiscal stimulus package dedicated to green measured represented three percent of GDP. This will result in up to one million new jobs being created, in industries such as energy conservation, forest restoration and water resource management. Other countries such as China, Japan, the US and Brazil are launching similar green stimulus packages.

On a global scale, Ban Ki Moon has set out three objectives to be achieved by 2030. These are to provide access to modern energy sources for the entire global population, to double the rate of energy efficiency improvements and finally to double the market share that renewables command in the global energy mix. In order to achieve this, green and impact investing will need to be at the top of government and private company agendas.29 November 2013Page 12Therefore The Philanthropy Conference: EY GibraltarPage 13

92 SRI retail funds14bn assets under management1.5% market shareLargest fund Stewardship Pension Fund (Friends Provident) - 1.5bn254 SRI retail funds40bn assets under management2.6% market shareLargest fund BNP Paribas - 4.99bn884 SRI retail funds in Europe95bn assets under managementRepresent 1.6% of overall retail fund marketAverage fund size is > 100mAbout color themesChoose the appropriate design theme for your presentation. The first two options on the design tab are correct EY themes, these two are the only ones that should be used. (1) dark backgrounds for onscreen; (2) light backgrounds for handouts.1!2Having looked at a variety of different statistics throughout this presentation, covering the growth of the sector, the current state and future predictions, you can see here a summary of the ethical and social investing market in Europe in 2012, as analysed by Vigeo, leading European ESG assessment organisation and Morningstar, specialised fund investing research organisation.Overall, the end of 2012 saw the total number of SRI retail funds rise to almost 900 funds in Europe. Combined, they control just below one hundred billion euros of assets, representing 1.6% of the overall retail fund market. The average fund size of over one hundred million euros.Looking at the UK and France as examples, the UK has 92 funds, managing fourteen billion euros of assets which represents one point five per-cent of the retain fund market.

France has the most developed SRI market, with over 250 funds, managing forty billion euros which represents two point six per-cent of the retail fund market. Their largest fund is owned by BNP Paribas and holds five billion euros of assets.

29 November 2013Page 13Therefore We contribute to society because we are successful(Giving something back)The Philanthropy Conference: EY GibraltarPage 14We are successful because we contribute to society(Creating shared value)

About color themesChoose the appropriate design theme for your presentation. The first two options on the design tab are correct EY themes, these two are the only ones that should be used. (1) dark backgrounds for onscreen; (2) light backgrounds for handouts.1!2The asset management industry is hugely powerful and successful, but above all in a period of change and reflection. The demand for improved ethical, responsible and sustainable investing comes from the full spectrum of people (employees to managers, partners to shareholders) for a variety of reasons, ranging from commercial benefits to avoiding global catastrophes.In case people of unsure how to cooperate with this movement in their personal investments, there is a plethora of thought leadership in the market, from corporates, activists and academics alike.The key messages that investors, both private and institutional need to understand are that it is possible to:Find ethical or sustainable investment opportunities that bring back equally lucrative returns to the traditional investment portfoliosFind these investment opportunities that bring may back lower financial returns but also result social returns of investment that compensate these reduced financial gainsMake a significant difference to the world and populations who need it most whilst simultaneously gaining commerciallyThe underlying point of these three messages is that they are what people want. The masses are pushing for companies to invest in this way and are looking to be a part of truly ethical, sustainable, responsible and caring organisations. Organisations that, following the evidence provided here today, can simultaneously do good and therefore be successful.

Both individuals and institution need to understand that the key to success in this field is the change from contributing to society because we are successful to being successful because we contribute to society.

29 November 2013Page 14Thank youAbout color themesChoose the appropriate design theme for your presentation. The first two options on the design tab are correct EY themes, these two are the only ones that should be used. (1) dark backgrounds for onscreen; (2) light backgrounds for handouts.1!2About color themesChoose the appropriate design theme for your presentation. The first two options on the design tab are correct EY themes, these two are the only ones that should be used. (1) dark backgrounds for onscreen; (2) light backgrounds for handouts.1!229 November 2013Page 15