IFAs no longer have to choose between profits and principles

The reality is clear. Many of Ecclesiastical's Amity (SRI) funds have delivered top quartile performance over time¹, with the Amity International Fund and the Amity Sterling Bond Fund delivering top quartile performance since their inception1. Every element of these funds' performance is closely monitored and nurtured by an award-winning team with over 60 years experience in the sector; each fund proving that profits and principles are wholly compatible.

Despite figures like these, many IFAs still remain cautious of ethical funds in general. In truth, it is widely accepted that virtually no aspect of our modern lives is untouched by 'the ethical factor' - a concept forcefully borne out by the fact 38% of us now feel guilty about making unethical purchases².

Profits with Principles

Socially responsible investing (SRI), although a small part of the investment market, has become increasingly important. The total value of ethical investments in the UK increased by 24% between 2006 and 2007 alone2 - impressive figures in any context. Growth in the sector has also been largely driven by growth in the choice and quality of companies that fund managers can choose from as regulation drives the legal necessity for these same companies to incorporate socially responsible initiatives into the day to day running of their organisations. With over twenty years of experience of monitoring - and engaging with companies as they adopt permanent SRI policies - Ecclesiastical Investment Management is one of the best placed fund managers to cherry pick those opportunities where performance and principles meet.

Ecclesiastical are therefore able to offer a range of exciting opportunities to investors whose aims are to achieve positive gains for society, as well as tangible financial returns. Ecclesiastical's 'profit with principles' approach therefore looks to deliver performance, whilst adhering to SRI criteria.

Unlike many of their competitors, their investments are selected not only on 'negative screening' criteria (excluding companies that earn more than 10% of their pre-tax profits from negative ethical practices such as alcohol, tobacco, pornography, strategic armaments and gambling), but more importantly, also through 'positive screening' practices.

Positive screening helps to identify the businesses of the future that offer good quality long term investment opportunities. As experience has shown, it also helps avoid companies who have operations which are likely to encounter problems from practices that are not sustainable in today's world.

These solid principles are the foundations upon which Ecclesiastical Investment Management's Amity fund range has been built, and steered, by a team of award-winning fund managers, two of whom have been in place for over 20 years.

The result is quality and consistency: funds delivering top quartile performance across a range of IMA sectors, demonstrating to IFAs and investors alike the value of their 'profits with principles' approach.

It's an impressive array of opportunities, including the Amity Sterling Bond fund - the only ethical fund in the IMA Sterling Strategic Bond sector - which celebrated its first birthday with top quartile performance since launch. Investing in a diversified portfolio of high quality bonds and gilts, it is currently delivering a yield of 6.4%3.

Source: Morningstar as at 17 April 2009. Basis; bid to bid with net income reinvested. 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 you originally invested.^* The Amity European Fund was launched on the 13 September 1999, on the 1 July 2008 the fund transferred from the IMA Europe (including UK) Sector to the IMA Europe (excluding UK) Sector. From the 31st December 2007 the portfolio had been rebalanced to meet the new sector requirements

High-performing Fund Managers

Two key contributors to Ecclesiastical's success have been the pedigree of their fund managers - and their length of experience with Ecclesiastical. Head of Investments, Sue Round, is one of the most experienced SRI fund managers in the country, having managed the Amity UK fund since its launch 21 years ago.

Working alongside her is Robin Hepworth, manager of the award-winning Amity International Fund (this fund won the prestigious Lipper award 2009 for the best fund over 3 years out of 149 funds, Global Equity category), the Amity Sterling Bond Fund and the Ecclesiastical Higher Income Fund.

AAA Citywire-rated⁴ Robin, who has 21 years of experience at Ecclesiastical, is manager of Morningstar's 11th most consistently performing fund in the UK over 3 years (Morningstar's 'The Consistent 50 Survey' (March 2009)). And is one of just 11 fund managers in Money Observer's 'Premier League'. He was also ranked 6th in Professional Adviser's 'Hot 100' recently for delivering 'the most consistently strong performance over 3 years'⁵.

Co-managing the Amity Sterling Bond Fund with Robin is CFA charterholder Chris Hiorns - both intent on providing the best possible returns from a fund that offers an attractive level of income by investing in UK Government and good quality sterling denominated, fixed-interest securities. Chris has 13 years of experience at Ecclesiastical.

Ecclesiastical's Amity Fund range is available on FundsNetwork, Transact, The Bigger Picture and Skandia.

For IFA support, contact Ecclesiastical Investment Management on 0207 680 5853 or visit them at ecclesiastical.com/ifa

1. Morningstar, 17 April 2009
2. Co-operative Ethical consumerism report, 2008
3. Distribution yield as at 31 March 2009
4. Source & Copyright: CITYWIRE. For the 3 years to 30th April 2009, Robin Hepworth has a Citywire AAA rating based on his risk-adjusted performance.
5. Professional Adviser, 2 April 2009