Sustainable Investment Research featuring ‘The Voice of the Adviser’ Robert Norum Commercial Director Blue & Green Tomorrow

Background  Four years surveying state of financial advisory market  Market for advice generally – and sustainable, responsible and ethical investment specifically  We also ask IFAs about how they win new clients and their views on the state of the economy April 2014© Blue & Green Communications2

The Macro View April 2014© Blue & Green Communications3

76% of financial advisers in the UK say they get requests for ethical financial advice £8.6 trillion representing 21.8% of assets under management is now invested sustainably. The UK leads the world in this sector The average ethical fund posted gains of 24% over the last year, compared with 18% from the average non- ethical fund Sustainable investments made by Europe’s HNWIs increased by 60% – compared to just an 18% rise in their total wealth 60%76% 24%22% April 2014© Blue & Green Communications4

43% would be likely to move their money out of a company that engaged in unethical or unsustainable activities 63% of investors would like to be offered a sustainable and ethical option when choosing investments 66% would like to be offered the option to choose a sustainable and ethical pension product 67% would be concerned about losing money if it was invested in companies pursuing activities that could be unsustainable in the long- term, for example in oil and gas 67%43% 66%63% April 2014© Blue & Green Communications5

1. How concerned, if at all, are you about current climate change, sometimes referred to as 'global warming’? 2. Thinking about the causes of climate change, which, if any, of the following best describes your opinion? April 2014© Blue & Green Communications Dept of Energy & Climate Change 2013

“Latest UN median estimate for global population is 9.6 billion by That’s 2.5 billion more than today. That was the global population in ” April 2014© Blue & Green Communications7 Extraordinary Facts around Sustainability: # 1

The Economy April 2014© Blue & Green Communications8

Do you expect overall economic conditions in the UK to be better or worse 12 months from now? April 2014© Blue & Green Communications9

Do you believe the Coalition Government’s economic plans will improve or worsen the economic outlook over the next 12 months? April 2014© Blue & Green Communications10

The Market for Advice April 2014© Blue & Green Communications11

In the last 12 months has the number of clients you work with increased, stayed the same or declined? April 2014© Blue & Green Communications12

In the next 12 months do you expect the number of clients you work with to increase, stay the same or decline? April 2014© Blue & Green Communications13

Where else do you believe your clients are getting advice from? (Please tick all that apply) April 2014© Blue & Green Communications14

Do you see more or less advised clients turning to any of the following over the next 12 months? April 2014© Blue & Green Communications15

On average, in the last 12 months are your clients requiring more or less advice/management/ planning from you? April 2014© Blue & Green Communications16

“We’re going to need more food in the next 40 years than has been produced in the last 8000.” April 2014© Blue & Green Communications17 Extraordinary Facts around Sustainability: # 2

Retail Distribution Review April 2014© Blue & Green Communications18

Do you think the RDR has benefitted or harmed the interests of your CLIENTS? Pre-2013, the question was “will benefit or harm” April 2014© Blue & Green Communications19

Do you think the RDR has benefitted or harmed the interests of your FIRM? April 2014© Blue & Green Communications20

Overall, has RDR been a success or failure in your experience? April 2014© Blue & Green Communications21 The biggest changes are seen as being greater transparency, increased professionalism for the industry but fewer clients served.

“Half of all the carbon put into the atmosphere by mankind has been since 1973.” April 2014© Blue & Green Communications22 Extraordinary Facts around Sustainability: # 3

Winning new clients April 2014© Blue & Green Communications23

What is the SINGLE most important piece of information, other than their name and contact details, that you need from a prospective client to win their trust and business? April 2014© Blue & Green Communications24

What percentage of your firm's income do you spend per annum on new client generation/marketing? April 2014© Blue & Green Communications25

On average how much money (£s) would you invest to acquire a single new client April 2014© Blue & Green Communications26

IFA spend based on 2013 growth segments April 2014© Blue & Green Communications27

What methods do you mainly use to generate new clients? April 2014© Blue & Green Communications28

“Recent FAO analysis suggests that wasted food is the largest emitter of greenhouse gases – after the US and Chinese economies.” April 2014© Blue & Green Communications29 Extraordinary Facts around Sustainability: # 4

Sustainable, responsible and ethical investment April 2014© Blue & Green Communications30

On average, in the last 12 months are your clients seeking more or less specific ETHICAL advice/management/planning from you? April 2014© Blue & Green Communications31

76% of financial advisers in the UK say they get requests for ethical financial advice April 2014© Blue & Green Communications32

Sector clients are MOST KEEN TO AVOID investing in? Sectors clients are MOST KEEN to invest in? April 2014© Blue & Green Communications33

A stubborn myth: “No one likes renewable energy” April 2014© Blue & Green Communications Dept of Energy & Climate Change 2013

Which of these ethical fund providers do you use most often? April 2014© Blue & Green Communications35

Biggest risers Growth Premier5.1%2.3%122% Quilter Cheviot5.6%3.3%70% Wheb AM5.6%3.3%70% Schroders7.3%5.1%43% Rathbone15.3%11.6%32% Kames29.9%23.3%28% Scottish Widows7.9%6.5%22% Friends Provident Stewardship41.8%35.8%17% Ecclesiastical35.6%30.7%16% April 2014© Blue & Green Communications36

Conclusions  The increased confidence in the economy this year is truly striking –Only 7% thought it would improve in 2012, 78% think it will improve in 2014  Advisers are expecting more clients requesting more advice –73% expect to have more clients  In terms of sustainable, responsible and ethical investment we see more advisers getting request for it, from an increasing number of clients –76% say they get requests for sustainable, responsible and ethical investment advice April 2014© Blue & Green Communications37

” We do a lot of things for reasons besides profit motive.” “We want to leave the world better than we found it.” “When we work on making our devices accessible by the blind, I don’t consider the bloody ROI.” “If you want me to do things only for [return on investment] reasons, you should get out of this stock.” April 2014© Blue & Green Communications38 Tim Cook CEO - Apple Final word

Future Boot Camp Dates  22 nd May: Liverpool  26 th June: Edinburgh  16 th September: London  23 rd October: Birminghan  27 th November: Bristol April 2014© Blue & Green Communications39