1. Julia Dreblow sriServices.co.uk October 2012For use by UK financial services professionals only

2. Introduction What is Fund EcoMarket& Panacea FundEcoMarket? Why should advisers useFund EcoMarket? Advice Process About sriServices.co.uk 3. This presentation introduces andexplains Fund EcoMarket an easyto use database tool which helpsUK financial advisers identifyclients SRI aims and match themto SRI fund options Its purpose is to help advisers offerSustainable and ResponsibleInvestment options more easilyand more often This in turn will enable advisers tomake more of growing publicinterest in green and ethical issuesand help give more clients accessto funds they may be interested in 4. UK screened SRI funds c11bn (from 4bn 10 years ago) around 1.5% of retailinvestment market according toEIRIS, 2011.These figures are dwarfed by institutional assets... Eurosif (2009) estimate 5 trillion acrossEurope, of which 92% is institutional Worldwide institutional investmentinterest has ballooned in recent years egUNPRI (United Nations Principles ofResponsible Investment) membershipnow exceeds 1000 signatories, with totalassets of over $30 trillion 5. Simple. An easy to use tool that helps advisers to identify clients SRI Aims (with an integral StyleFinder fact find tool) and match them to relevant fund options. The tool works by clustering all SRI funds into Styles. Comprehensive. A database of all retail, onshore, regulated green, ethical and SRI funds which also introduces the major SRI strategies and shows which funds fall within which SRI Style. Unique. Compliments exiting tools this tool gap fills it does not reproduce existing adviser tools. It fills the hold in between the wide range of financial tools on offer and SRI analysis services. It is neutral, non judgemental , independent and different. 6. All retail SRI funds listed* withadditional Engagement options Over 400 fund entries (listed by distributer) All major retail product areas covered Life, Pension, UT/OEIC, IT Listed by high level investment sectors eg UK Equity, GlobalEquities, Mixed, Bond, Income, Europe, Property, Other All major SRI Approaches included 7 Styles across SRI market (with additionalinformation on newer specialist options)*Source: Capita/Synaptic Research 7. Traditional Ethical funds primary approach isclear, strict avoidance of a range of negative ethicalor values based activities. They are likely to alsoconsider environmental and social issues, screeningout companies that do not meet the funds negativecriteria. May use international norms or standards. Responsible EngagementMay also have positive criteria but these do notoverride the funds core negative screens. Sustainability Themed Balanced Ethical funds are ethically screened fundsBalanced Ethicalthat balance the positive and negative aspects ofcompanies across a range of ethical, social andEnvironmental Themeenvironmental issues. Likely to invest in mostsectors, may favour market leaders or best in sector Traditional Ethicalcompanies. Tend to have fewer absolute negativeexclusions than traditional ethical funds.Faith Based Faith Based funds invest in line with a specific set ofClean Technologyreligious values. This is a small group of funds withfew investment options at present. 8. Sustainability Themed funds research a range ofissues relating to the sustainability agenda whenconsidering where to invest. They aim to holdpositive, forward-looking companies, with strongenvironmental and social credentials. Fund managerstypically favour companies that are well placed to Responsible Engagementbenefit from regulatory and legislative change.Sustainability Themed Environmentally Themed funds significantlyintegrate environmental opportunities and risks intoBalanced Ethicaltheir investment decisions. Environmental funds mayfocus on a range of environmental themes or Environmental Themespecialise in a single issue or resource. Someenvironmental funds consider social and ethical issuesTraditional Ethicalalongside environmental criteria. Faith Based Clean Technology funds specialise in clean technologyand environmental solutions companies. Fund Clean Technologymanagers often focus on environmental markets andmay favour pure-play companies that are well placedto lead change. These are thematic funds and do nothave ethical screening criteria. 9. Responsible EngagementResponsible Engagementoptions are regular ormainstream funds, offeredSustainability Themedby SRI fund managers andothers. They encourage Balanced Ethicalpositive change throughdialogue and shareholder / Environmental Themeinvestor engagementstrategies. Engagement doesTraditional Ethicalnot normally directly impactinvestment strategy.Faith Based Clean Technology SRI Services Styles Directory link 10. SRI Styles: diverse motivations and drivers Different fund styles suit different clients...Ethical/Personal Values Business/Financial InfluencesResponsible Engagement Sustainability ThemedFaith Environmental ThemeBalanced EthicalFund Manager view of clients Clean TechnologyI want to make money and .....SRI aims & motivations: Traditional Ethical Reflect personalCombine ethical considerations withBenefit financially from being ahead of values/beliefs by avoidingbusiness trends to help reduce risk andthe curve . Want fund manager to focus unethical industries or benefit from holding more responsibleon environmental, social and governance companies . May want to companies - and encourage positive change. risk /opportunity. Favours well informed encourage positive progress Investor wants to feel comfortable withcompanies or sector/market leaders. and change. responsible, forward looking investmentMay want to encourage change. strategy.www.sriServices.co.uk 11. After logging in you need to : 1. Input your name and your clientsname or reference nb. this is for your reference only 2. Select fund SRI Style(s) from list.If this is not known ask your client to complete the integral SRI fact find questionnaire which will identify their favoured Style/s 3. Select investment areas of interestfrom pre-populated listeg. UK Equity, Global Equities, Mixed, Bond, Income, Europe , Property 4. Select Fund/Product type(s); Life, Pension, UT/OEIC and/or IT 12. Fund EcoMarket generates...A FundFinder list of all relevantfunds from your selected Styles /Sector / Fund Type combinationYou tick which funds you and yourclient are interested inClick save or print to generatereport and to keep for furtherresearch - and for your audit trailSee website to try it out!www.FundEcoMarket.co.uk 13. Helps financial advisers to advise clients better andmeet best practice standards Supports TCF & increased professionalism aims ... aspublic interest in green/ethical issues is high Fits with FSA FG12/15 view that client needs must beassessed on an individual basis - and areas like this shouldnot be overlooked ISO22222 requires advisers to ask SRI fact findquestion, but is not prescriptive about next steps Helps advisers offer SRI more easily Matches clients needs to fund options Highlights different SRI strategies to reduce confusion Provides an SRI audit trails Can help advisers to develop fund shortlists andportfolios Integrates ESG issues into advice process Demonstrates that whole market has been researched (anRDR requirement) Informs fund research by showing SRI funds by asset styleand ESG (Environmental Social and Governance) aspects 14. Initial SRI Fact Find Question Output: Yes / NoStep 1 Identify SRI Aims Output: List of relevant SRI styles and/or SRI issues and approaches of interestStep 2 to client Combine SRI and Regular Fact Find informationStep 3 Output: List relevant options for further consideration Identify preferred optionsStep 4 Output: Shortlist of appropriate SRI fund options RecommendationsStep 5 Output: Agree investment choices 15. An online service providerspecialising in the SRI market Working only in the retail, advisermarket Three main links: www.sriServices.co.uk for a widerange of SRI information for IFA use www.FundEcoMarket.co.uk funddatabase tool for advisers only http://StyleFinder.FundEcoMarket.co.uk a client microsite for advisers tooffer to clients so they can completethe SRI StyleFinder fact findquestionnaire in their own time Also available via PanaceaAdviserEthical Zone from October 2012 16. Any queries... please contact me via julia@sriservices.co.uk 07702 563702Or see... www.sriServices.co.ukFor information purposes only.For use by UK based financial services professionals only.We are not authorised to offer financial advice.Please quote source where cited. 17. 2011 bringing new ideas to life... An on-line SRI hub for advisers Comprehensive Fund EcoMarket database Adviser / retail SRI support & consultancy 2008 2011, included the following... SRI Website mark 1 UKSIF SRI Wrap/Platform report Sarah Pennells book 1989- 2009 Friends Provident L&P - SRI Marketing Manager, SRI Development Manager, Senior IFA Consultant (1996-2008) UKSIF Director, Chair of Retail SubCom & on 1st NEIW advisory board (2002 2009) NPI Broker Consultant (1989-1995), AFPC 18. To move retail SRI up a Thank you for listening!gear (or three), by: Providing thought leadership, ideas, enthusiasm ... and a unique combination of experience and independence Working with advisers, fund managers and service providers to unlock the potential of the retail SRI market Providing new services to compliment existing adviser tools so that SRI can fit in with advisers existing ways of working