EIRIS Charity Project Seminar Pooled Funds: the Opportunities for Responsible Investment 1 December 2009 Authorised and Regulated by the Financial Services Authority Incorporated in England and Wales Registered number Registered Office 9 Bonhill Street London EC2A 4PE

Specialist in church & charity fund management Specialist in ethical fund management The CFB of the Methodist Church 10 pooled funds valued at £1,090 million for the Methodist Church only Epworth Investment Management 4 pooled funds valued at £630 million (of which £500 million CFB) for UK charities only and 2 pooled funds valued at £30 million (of which £25 million CFB)

Pooled Funds & Responsible Investment Our Mission to provide a high quality investment service seeking above average returns to follow a discipline in which the ethical dimension is an integral part of investment decisions to construct investment portfolios consistent with Christian faith and morals to encourage strategic thinking on the ethics of investment to be a Christian witness in the investment community

Pooled Funds & Responsible Investment Epworth range of funds Common Investment and Common Deposit Funds ◦Affirmative Equity Fund ◦Affirmative Fixed Interest Fund ◦Affirmative Corporate Bond Fund ◦Affirmative Deposit Fund UCITS Umbrella Unit Trust Scheme ◦Epworth UK Equity Fund ◦Epworth European Fund Simplicity with service

Pooled Funds & Responsible Investment Affirmative Equity Fund the first sustainable growth common investment fund “Investment will be made in companies (that) will normally (but not exclusively) pursue long term sustainable growth strategies in the wider interests of all parties including owners, lenders, employees, suppliers, customers/clients and the local and wider community.” Extract from Scheme Particulars

Pooled Funds & Responsible Investment A structured approach to ethics Theological input Detailed research Company dialogue Ethics Advisory Committee Networking Reporting

Pooled Funds & Responsible Investment Networking Ecumenical church relationships ◦Church Investors’ Group ◦Ecumenical Council for Corporate Responsibility (ECCR) ◦International networks Secular collaborative projects ◦Institutional Investors’ Group on Climate Change ◦Extractive Industries Transparency Initiative ◦Carbon Disclosure Project ◦UN Principles for Responsible Investment Research organisations ◦EIRIS, PIRC, Trucost

Pooled Funds & Responsible Investment Reporting EIRIS screening report PIRC voting report Policy statements Ethics Advisory Committee report Quarterly SRI review

Pooled Funds & Responsible Investment Position Papers and Policy Statements Alcohol Children’s issues Climate change Corporate governance Financial intermediaries Food industry including Nestlé Israel/Palestine Media Military exposed companies including security services Mining and other extractive industries Political donations Prisons Voting

Pooled Funds & Responsible Investment Ethics Advisory Committee Annual Report 2009 Policy on children’s issues Policy on contractors providing military and security services Exchange of views with US churches on Israel/Palestine Climate change position paper drafted and debated CIG policy statement with respect to Sudan adopted as CFB/Epworth position Nestlé BSkyB Anglo American Meetings, correspondence or ethical research - 35 companies Regular reporting items Conclusion ◦“The Committee judges that the CFB has managed the funds under its control in accordance with the aims of the Methodist Church”

Pooled Funds & Responsible Investment Contact Details 9 Bonhill Street London EC2A 4PE Chief Executive Relationship Manager Bill Seddon Bill Lane Chief Investment Officer Russell Sparkes Central Finance Board of the Methodist ChurchEpworth Investment Management Limited Tel Tel