Amity Insight Digital Planet: A brave new world for business
This is for professional advisers only. This material is not suitable 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 Tape (Analogue): The music itself n the catalysts for the digital revolution and its impact on several sectors exists in analogue form as a series n companies that have been digital pioneers, have transitioned to the new paradigm of sound waves or have failed to adapt Compact Disc (Digital): In contrast, n the challenges and opportunities raised by the adoption of digital technology a CD translates the sound into a digital within an ESG framework. form that is encoded onto a disc
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
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, Google buys Nest Labs mechanising processes that were previously labour-intensive, commercialising transportation that catered to the masses, and supplying electricity and sanitation Facebook buys WhatsApp to urbanised areas, dramatically improving living standards and health conditions iPad launched over time4. Nest Labs founded Beginning in the latter half of the twentieth century and significantly shorter in duration, 4G network the Digital Revolution is still currently M-PESA launched having a global impact. DAB radio Bitcoins
Google founded App store launched
eBay founded iPhone launched
Amazon founded Wii game console
2G network Twitter founded
ARPAnet – precursor WorldWideWeb Facebook founded to the internet 1st mobile phone – Motorola Skype founded Intel founded Microsoft Windows Android system Silicon chip 1st CD pressed Wikipedia founded 1st transistor 1G mobile network iPod launched 1st large-scale, Microsoft founded 3G network digital computer Z3 (1st programmable computer) Email ASOS founded
1940-69 1970-99 2000-14
Robotics for Digestible sensors Beyond... domestic use Virtual reality Artificial intelligence Smartwatch
4. Robert Gordon ‘Is US Economic Growth Over? Faltering Innovation Confronts Six Headwinds’ CEPR Policy Insight, number 63, September 2012
Amity Insight October 2014 3 Driving the shift: the three Ps
Proliferation of communication devices The rapid adoption of these devices has been driven by the evolution of the mobile phone, with the smartphone becoming The proliferation of technologies has advanced at an the most popular default form of handset. This is coupled with extraordinary rate as connectivity and affordability continue the introduction of new product categories such as tablets, to improve at every level of society. In the first decade of all of which provide users with ubiquitous connectivity and the 21st century, the number of mobile phone subscriptions the ability to personalise their devices. Mobile phones are also across the world increased from 750 million to 5.3 billion. the preferred method of communication in emerging markets, It is now estimated to be above 6.5 billion. By the end where subscriptions have risen at a 20% compounded annual of 2014, due to multi-SIM ownership, the Cisco Visual growth rate since 20056, driven largely by falling hardware Networking Index predicts that the number of mobile- prices and rising incomes. connected devices will exceed global population5.
Mobile phone subscriptions worldwide
7,000 140 Number of Mobile Phone Subscriptions 6,000 120 (millions) (LHS) 5,000 100 Global Mobile Phone 4,000 80 Subscribers per 100 Inhabitants (%) (RHS) 3,000 60 Developed World Mobile 2,000 40 Phone Subscribers per 100 Inhabitants (%) (RHS) 1,000 20 Emerging Market Mobile 0 0 Phone Subscribers per 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 100 Inhabitants (%) (RHS)
Source: International Telecommunications Union
Pace: increased openness content, with video now one of the fastest-growing categories and speed of networks on the internet. The Cisco Visual Networking Index forecasts that over two thirds of global mobile traffic will be video-based There is an on-going technological shift in the global by 20187. connection base, driven by the improving breadth and speed of networks. This is increasing the rate of adoption in digital Mobile broadband has a greater positive impact than fixed-line technologies within developed economies, such as Japan and broadband, particularly in emerging markets, and a 10% the US, where high-speed access is present. These higher increase in mobile broadband penetration yields a 1.4% speeds are transforming consumer demand for service and increase in GDP for low-to-middle income countries8.
Average actual fixed-line residential broadband speeds (Mbps)
14 Japan 12 United States 10 UK 8 Germany 6 China 4 Brazil 2 India Actual fixed-line download speed in megabits per second megabits per in speed download fixed-line Actual 0 2008 2009 2010 2 011 2012 2013
Source: Akamai
4 Amity Insight October 2014 Penetration of the internet worldwide
The rate at which the internet has been adopted as a common At the beginning of the millennium, global internet penetration form of technology is unprecedented. Radio had been in stood at 5%. By the end of 2013, over 34% of the world’s existence for 38 years before user numbers reached 50 million. population had regular access. It is estimated that, by 2030, Television took 13 years to achieve the same feat, and 16 years 50% of the global population will have access to the internet11. had passed before 50 million people were using the personal Thus far, the increasing levels of adoption have been driven computer (PC)9. The internet took just four years to surpass by developed markets, with penetration approaching 80%, that benchmark10 and the pace of adoption has since continued but the next wave of adoption will be led by emerging markets, at a tremendous rate. The resulting impact is that in one where penetration rates remain well below the global average. generation, the majority of the world’s population will have To further increase the competitiveness of their economies, the transitioned from having close to no access to unfiltered so-called BRIC countries (Brazil, Russia, India and China) will information, to having the ability to access all the information need to increase access to the internet for their populations. ever created digitally through a device that can fit in the palm of their hand.
The world’s largest internet populations
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%
Source: Internet World Stats. Data as at June 2012
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.
5. Cisco, ‘Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 8. GSMA ‘The Mobile Economy 2014’ 2013-2018’ page 2 www.cisco.com/c/en/us/solutions/collateral/service-provider/ 9. Mary Meeker and Sharon Pearson, ‘Morgan Stanley U.S. Investment Research: Internet visual-networking-index-vni/white_paper_c11-520862.html 5 February 2014 Retail’ Morgan Stanley http://www2.ufp.pt/~lmbg/formacao/inetRetail1.pdf 28 May 1997 6. International Telecommunications Union ‘Key ICT Statistics 2005-2014’ http://www.itu. 10. Kofi A. Annan ‘World Telecommuncication Day: Message from Kofi A. Annan’ International int/en/ITU-D/Statistics/Pages/stat/default.aspx 2014 Telecommunication Union http://www.itu.int/itunews/issue/2001/04/wtd.html April 2001 7. Cisco, ‘Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 11. European Union Institute for Security Studies ‘Citizens in an Interconnected and 2013-2018’ page 3 www.cisco.com/c/en/us/solutions/collateral/service-provider/ Polycentric World’ European Union 2001 visual-networking-index-vni/white_paper_c11-520862.html 5 February 2014 12. Deloitte ‘What is the Impact of Mobile Telephony on Economic Growth?’ November 2012
Amity Insight October 2014 5 Infrastructure of the Digital Planet
The main factors that help to support and develop the infrastructure of the digital planet are shown below.
Storing and accessing data and programs over the internet instead of from your computer’s hard drive or a local server. Internet & The Cloud (Google, Amazon, Salesforce) 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.
Microprocessors A silicon chip that contains a central processing unit (CPU – the (Intel, ARM) brains of the computer where most of the calculations take place).
A computer or a device on a network that manages network Servers resources. There are many different types of server that perform a varying amount of tasks ranging from file server (storing files), (HP, IBM) print server (managing printers on a network) or a database server (processes database queries).
Mass Data Storage Physical or virtual infrastructure used to house computer, server and networking systems and components to meet the vast IT (EMC, NetApp) needs of companies.
Software is often divided into two categories: Systems software includes the operating system and all the utilities Software that enable the computer to function. (Oracle, SAP) 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.
A network is a group of two or more computer systems linked Networking together. Equipment providers manufacture products that enable (Cisco, Ericsson) users to send and receive voice, video and data over a physical connection.
6 Amity Insight October 2014 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 commerce has limited location costs, with warehousing for many of the traditional ‘bricks and mortar’ retailers to and website maintenance the core overheads. Conventional maintain their profitability. Conventional retail channels were retailers have been forced to close unviable outlets, open fewer based on store location, shop floor optimisation and advertising new stores and ramp up investments in their online-based or in-store offers to entice clientele. In contrast, digital infrastructure.
Digital Transition and Digital Dud
Digital Digital Transition Dud
Royal Mail has adjusted its business model and utilised its HMV entered administration in 2013, as a lack of investment in existing mail network to take advantage of the fast growth in its online offering and diversification into other ailing industries e-commerce and parcel delivery. The company accounts for left the company unsuitably positioned for a dramatic shift approximately 53% of parcel delivery volumes in the UK13. 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
Advertising and Media – reaching the target audience
Digital technologies have led to the development of new demographics and the resulting effectiveness of a campaign was platforms for advertisers and the wider media industry. Internet difficult to ascertain. Now with more ways to capture information advertising has been the fastest-growing marketing platform about the end-consumer and more avenues to target the desired in recent years and in 2012 surpassed newspaper advertising. clientele, agencies are becoming increasingly engaged in other In the past, advertisers often struggled to target specific areas such as product development and e-commerce.
Digital Pioneer and Digital Dud
Digital Digital Pioneer Dud
Wolters Kluwer is a Netherlands-based global publisher Hibu (formerly Yell Group), the publisher of the UK’s of professional information services which has transformed Yellow Pages, failed to capitalise on the transition to digital, into an online information service provider, making information establishing its first website only in 2010. With plummeting accessible in numerous ways including portals, online databases sales and a business model based on acquiring other print- and e-publishing, software and smart device applications. based directory groups, the firm fell into administration in 2013.
13. Andy Chu and Tom Sykes ‘Royal Mail: Initiation of Coverage’ Deutsche Bank 4 April 2014 14. Philip Beeching ‘HMV: How the Top Dog Lost its Bite’ http://www.bbc.co.uk/news/entertainment-arts-21028803 13 January 2013
Amity Insight October 2014 7 Healthcare – saving lives and money
Healthcare digital innovations could significantly reduce diagnostic process, improve patient monitoring and reduce future costs for healthcare systems and improve outcomes hospital and physician visits. Digital technology is helping to for patients. Databases and software applications delivered change the traditional interface between patients and doctors. via mobile phones and tablets are helping to speed up the
Digital Transition and Digital Pioneer
Digital Digital Transition Pioneer
Philips is transitioning itself from consumer electronics to Samsung’s Galaxy S5 smartphone now comes with a unique a healthcare company. It has teamed up with Salesforce, built-in heart rate monitor that allows information to be stored a cloud-computing company in the US, to offer online and reviewed via the Samsung S Health app. management of chronic diseases.
Telecommunications – connecting the planet
Higher speed networks and the proliferation of more advanced sources for telecommunications firms. From 2013 to 2018, the mobile devices are allowing users to adopt an expanding range Cisco Visual Networking Index anticipates that global mobile data of services and applications. This is driving a rapid increase in traffic will increase approximately eleven-fold and outpace fixed data traffic globally and has led to a significant shift in revenue data traffic growth by a factor of three15.
Digital Transition and Digital Pioneer
Digital Digital Transition Pioneer
BT Group announced in 2014 that it would be re-entering Vodafone began life as Racal Strategic Radio Limited in 1984, the UK mobile market since selling its Cellnet O2 business and has since gone on to become a global telecoms leader. to Telefonica in 2005. The move complements BT’s existing In addition to developing M-PESA, the company has developed offerings in fixed-line and media services, providing the M2M (machine to machine) communications, which is seen as company with the opportunity to convert its existing installed the driver behind the ‘Internet of Things’ (IoT). The technology base to mobile and entice others to the convenience will be used to develop smart mobility, buildings, cities of a bundled product offering. and business.
15. Cisco ‘Visual Networking Index Forecast Projects Nearly 11-Fold Increase in Global 18. Bobby Chiu, Bowen Gu and Esther Tsang, ‘Industry Analysis: Technology Hardware Mobile Data Traffic from 2013 to 2018’ http://newsroom.cisco.com/release/1340551/ and Equipment’ Sustainalytics February 2014 Cisco-Visual-Networking-Index-Forecast-Projects-Nearly-11-Fold-Increase-in-Global- 19. RepRisk Insight ‘Technology & Electronics’ page 4, January 2014 Mobile-Data-Traffic-from-2013-to-2018 5 February 2014 20. RepRisk Insight ‘Technology & Electronics’ page 5, January 2014 16. RepRisk Insight ‘Technology & Electronics’ page 4, January 2014 17. Pippa Norris ‘Digital Divide: Civic Engagement, Information Poverty, and the Internet Worldwide’ Cambridge University Press 2001
8 Amity Insight October 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 of production. However, the rise in technology manufacturing between the information rich and poor, creating the so-called and the energy required to run data centres create significant ‘digital divide’. Those with income, education and e-skills are environmental impacts across the digital value chain. able to access plentiful amounts of information at a low cost Carbon emissions: It is estimated that the IT sector overall and high speeds, while others are left behind17. Initiatives have accounts for 2% of global carbon emissions and data centres been launched to address this problem, but disparities in the account for approximately 14% of the industry’s footprint18 distribution of information and communication technologies are . deep-seated, suggesting that they will not easily be eradicated Electronic waste: The accelerating rate of hardware or ameliorated. replacement is increasing the amount of electronic waste Data snooping: Increased surveillance in public places and at the end of the product life cycle. It makes up 5% of all 19 an expanding number of ways in which data can be captured municipal solid waste worldwide . is blurring the lines between private and public security. Conflict minerals: The technology industry has come under Vodafone revealed the extent of government surveillance greater scrutiny over the sourcing of minerals used in electronic in its Law Enforcement Disclosure Report in June 2014: products. The most common metals include aluminium, iron, copper, nickel, zinc, gold, cobalt, gallium, tin, tantalum, tungsten, n Governments in 29 countries in which it operates ‘snoop’ beryllium, indium, platinum, palladium and rare earths. Mining for these metals has been linked directly to violence and human n In most countries, requests for information are required, but rights violations, notably in the Democratic Republic of Congo. six ‘undisclosed’ countries have ‘direct & permanent’ access n Direct access is mandated in some countries for security Water use: It is estimated that the water footprint for one 20 n UK made 514,608 call requests in 2013 and 2,760 mobile phone is nearly 1,000 litres . Many of the largest interception requests. users of water are often located in highly water-stressed areas, exacerbating the situation. Environmental impacts: The development of new technologies should reduce our demand for physical content such as hard media and thus lower the environmental impact
The Global Digital Divide
0 - 4.54
4.54 - 12.55
12.55 - 25.36
25.36 - 49.74
49.74 - 89
No data
Scale: Computers per 100 people Source: United Nations Global Development Goals Indicators
Amity Insight October 2014 9 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.
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
£0 Online Scareware Identity IP theft Espionage Customer data Online theft Extortion Fiscal fraud theft loss (reported) from business fraud
Source: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/60943/the-cost-of-cyber-crime-full-report.pdf
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’.
10 Amity Insight October 2014 Freedom on the net
Free
Partly Free
Not Free
Country not assessed in 2013
Freedom on the Net 2013 assessed 60 countries around the globe. The project is expected to expand to more countries in the future.
Amity Insight October 2014 11 Value chain
From an investment perspective, there are many parts of be of equal importance as finding the pioneers and those the value chain that are available for responsible investors. companies adapting their businesses. We believe that The investment team avoided investing in overvalued and companies involved in building the digital infrastructure unsustainable businesses during the dotcom bubble in the of the future will be in strong positions as further technological late 1990s and early 2000s. The team is focused on seeking innovations lead to acceleration in the digital revolution. out companies with business models that are leading the way Examples of companies currently held in the Amity Fund or transitioning to the digital economy. Avoiding the duds will range include Cisco, Sage, Intel and Ericsson.
Software Networking Data Storage
Servers Semiconductors Internet
Recreated PMS
12 Amity Insight October 2014 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 n In 2013, 7.6bn gallons (87% of total water withdrawals) containing tantalum, tin, tungsten or gold derived from were sent to municipal water treatment operations for reuse sources that benefit armed groups in the Democratic n 44% of chemical waste is recycled or reused and only Republic of Congo or adjoining countries 4% is sent to landfill n Since 2008, Intel has been the largest voluntary corporate n Intel has more than 200 programmes in over 70 countries purchaser of green power in the United States that provide professional development for teachers, enabling n As at the end of 2013, GHG emissions had declined by 31% access to digitised content in absolute terms from a 2008 base n Intel’s ‘Learn Programme’ (designed to provide support and n 2008-2013, Intel invested over $89m in energy efficiency resources for young learners in developing economies) has initiatives, which has generated cumulative energy cost reached c.900,000 girls and women across 18 countries savings of $168m to the end of 2013 since its launch in 2004.
Amity Insight October 2014 13 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
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?
14 Amity Insight October 2014 Why Ecclesiastical?
n The backing of an n A pride in our independent analysis. n Avoidance of companies materially award-winning team We’re not afraid to adopt contrarian involved in alcohol production, positions and are in favour of long- gambling operations, pornographic n Over 20 years of experience of term investment horizons and violent material, tobacco socially responsible investing (SRI) production, testing animals for n A consideration of the preservation n cosmetic or household products, Funds that are both positively of capital as our primary responsibility, and negatively screened supporting oppressive regimes preferring absolute returns over or strategic weapon production n A stable investment team with relative performance n a wealth of experience spanning Actively seeking out companies with n Fund Managers at Ecclesiastical many years a record of involvement and good are unconstrained by rigid stock lists, performance in terms of business n A comprehensive in-house permitting more flexibility to take practices, community relations, SRI research function advantage of good-value opportunities corporate governance, education, as they present themselves environmental management, n An independent panel that reviews n healthcare, human rights, labour investment decisions Decision-making for the long term, as frequent trading increases costs relations and urban regeneration n A robust socially responsible and decreases returns investment process
Amity Insight October 2014 15 Meet the team
Sue Round Andrew Jackson Director of Investments and UK Equity Growth Fund Manager Amity UK Fund Manager Sue is the UK’s longest-serving retail SRI Andrew joined Ecclesiastical in 2003 Fund Manager. With the benefit of extensive and manages the UK Equity Growth Fund. experience, she has made the Amity UK Fund His wealth of experience includes roles one of the leaders in the increasingly important at Canada Life and Lloyds Investment socially responsible investment sector. Managers. Andrew is AAA-rated by Citywire.
Robin Hepworth Neville White Chief Investment Officer, Amity International Head of SRI Policy & Research Fund Manager and co-manager of the Amity Before joining Ecclesiastical in 2010, Neville Sterling Bond Fund was responsible for developing and managing Robin has been with Ecclesiastical global corporate governance proxy voting with for 24 years. He is recognised as one of CCLA Investment Management. Prior to this, Citywire’s top 10 Fund Managers of the past he worked for the Church Commissioners, decade and is also a Trustnet Alpha Manager, latterly as Secretary to the Church of England’s placing him in the top 10% of all UK unit trust Ethical Investment Advisory Group. and OEIC managers.
Chris Hiorns, CFA Ketan Patel, CFA Amity European Fund Manager and Senior Socially Responsible co-manager of the Amity Sterling Investment Analyst Bond Fund Ketan began his career at JP Morgan in Chris started working for Ecclesiastical in 1998. He moved to Clerical Medical (now 1996 and has been a CFA Charterholder Insight Investment) as an Equity Analyst. since 2004. Ketan has worked for Ecclesiastical for ten years and is a CFA Charterholder.
Peter Cameron CFA Thomas Fitzgerald Assistant Fund Manager Investment Analyst Peter joined Ecclesiastical as an Assistant Fund Thomas joined Ecclesiastical in 2011 Manager in 2014. Previously, he worked as an after completing a BSc in Economics and Equity Analyst within the Quant Solutions Team Business Management at Oxford Brookes at Aviva Investors. He also held positions within University. He supports the fund management SRI, performance and portfolio risk at Aviva. team by providing detailed company research He is a CFA Charterholder and has a BSc and analysis. Thomas is studying for the CFA. in Mathematics and a MSc in Corporate Governance & Ethics.
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.
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