Ethical Investment
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Ecclesiastical Amity International ISA
Introduction to this Special Offer
A number of our current and prospective investment clients are happy to make their own investment decisions without the need for specific financial advice. They may, however, be seeking information on ethical investment products that have particular features or which are offered at a substantially discounted rate to the normal initial charges. The ethical ISA highlighted on this page may be one that will appeal to such investors as it provides a combination of a very favourable reduction in the initial charge with a fund which has an outstanding performance track record when compared to other ethically screened investment funds.
The information below, together with the links to further documentation and application forms are designed to help a client who decides for themselves that this product is appropriate, and to help them ascertain all of the information necessary to make an informed judgment. Please note that Profit With Principle are happy to provide an individual advice service to clients who are unsure as to the suitability of this or any other ethical investment product for their circumstances, however in providing advice we will not be able to offer the special terms described below and our normal charges for advice will apply. In this situation, please contact ourselves using the following form (link to contact page).
The information below provides detailed information to allow you to assess if the ISA is suitable for your requirements, but in summary the following are five of the main reasons that you may wish to consider this offer:-
- Investment in a tax efficient and flexible ISA plan
- A very substantial discount off the initial charge reducing it from 5% to 0%
- High quality fund management and above average past performance
- Robust ethical investment approach from a company with long history of involvement in SRI
Why invest in the Ecclesiastical Amity International ISA ?
General Reasons for investing in ISAs :
ISAs (Individual Savings Accounts) are a popular choice for many investors, whatever their financial goals. They are tax-efficient and flexible, and you can invest with a lump sum or with monthly amounts.
- ISAs (Individual Savings Accounts) are tax efficient wrappers that surrounds a fund choice
- Growth on investments held in ISAs are not subject to Capital Gains Tax and there is no further tax on income
- ISAs do not need to be reported on a tax return
- Maximum investment of £10,680 per tax year
Please be aware that the value of tax savings and eligibility to invest in an ISA will depend on individual circumstances, and all tax rules may change in the future.
Specific Reasons for investing in the Ecclesiastical Amity International ISA :
The investment may be of interest to those who are seeking a tax efficient professionally managed and ethically screened fund that aims to achieve long term capital growth and an attractive level of income by investing in equities internationally. The Fund offers the opportunity to invest in socially responsible screened investments on a global basis, allowing exposure to some of the more rapidly growing regions and the benefit of greater diversification.
The fund seeks to invest in companies that make a positive contribution to society and the environment through sustainable and socially responsible practices whilst avoiding certain areas such as tobacco, alcohol production and armaments.
For clients of Profit With Principle investing a minimum of £5,000 there is a 5% discount off the initial charge reducing it from 5% to 0%. This the equivalent of a saving of £534 for a maximum £10,680 investment in an ISA for the 2011/12 tax year.. These terms are not available by proceeding with this ISA direct with the product provider and are only available through Profit With Principle Ltd under the terms of this direct offer. The annual management charge on the fund remains at the standard rate of 1.5% p/a.
The Ecclesiastical Amity International fund in which the ISA invests was launched in 1999 and since launch has been managed by Robin Hepworth who has been rated the maximum AAA rating by Citywire, and is also a Trustnet Alpha Manager.
The fund won the Lipper award for best fund in the Global Equity Sector over 3 years in both 2009 and 2010
Ecclesiastical won the Moneyfacts Best Ethical Investment Provider award 2009
Ecclesiastical is ultimately owned by a charity, The Allchurches Trust, to whom we distribute our profits. As one of the UK's top Ten Corporate Donors (source - the Guide to UK Company Giving published by the Directory of Social Change (2005)Ecclesiastical have donated almost £48 million in charitable grants over the past 15 years.
How has the Ecclesiastical Amity International Fund Performed?
Independent fund performance information provided by Financial Express, confirms that the fund has a significantly above average track record on both a year by year and cumulative basis over the last 5 years and importantly, the Ecclesiastical Amity International Fund has achieved this high level of performance at a level of volatility (a measure of investment risk) that is the lowest of all ethically screened equity based investment funds. (Source: Morningstar 3 year standard deviation of 17.1% dated 5/7/10).
Please click on this link - Latest Fund Factsheet - for the latest Fund Fact sheet from Ecclesiastical which confirms the above average performance of the fund
Fund Ratings
There are a number of independent fund rating organisations and agencies which provide awards and ratings of investment funds. In order to obtain information on what these ratings signify please click on the links below.
The Ecclesiastical Amity International fund has achieved the following notable awards and rating.
(Source for Funds Ratings – Fidelity Funds Network 01/07/2010)
Please note:-
Past performance should not be seen as an indication of future performance. Exchange rate fluctuations may have an adverse effect on the value of non-UK shares.
The value of investments and income from them may go down. You may not get back the amount originally invested.
Investment in smaller company funds can involve greater risk than is customarily associated with funds investing in larger, more established companies. Above average price movements can be expected and the value of these funds may change suddenly.
Investment in emerging market asserts can involve greater risk than is customarily associated with assets investing in developed, more established markets. Above average price movements can be expected and the value of these funds may change suddenly.
Changes in the rates of exchange between currencies may cause your investment and any income from it to fluctuate in value.
Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change.
The value of your investment can not increase in value whilst your funds are being transferred.
What is the ethical approach of the Ecclesiastical Amity International ISA ?
Ecclesiastical avoids companies whose activities derive 10% or more of pre-tax profit or turnover from:
- Alcohol production
- Gambling operations
- Pornographic & violent material
- Tobacco production
- Strategic armaments
Although there is a 10% rule, it is highly unlikely that Ecclesiastical would ever invest in companies that are involved in the production of alcohol, tobacco or pornography. There are several reasons for this; from a practical point, companies involved in this area generate most of their turnover / profits from one area. For example, tobacco firms are solely focused in the production of tobacco goods, it is unlikely they would be involved in selling clothes or food as well. The same applies to firms involved in alcohol and pornography. Therefore the vast majority of companies operating in this space far exceed our 10% threshold. In addition to this there are generally very few investible companies which are open to mainstream investors when it comes to pornography. We also strengthen this screen by adding the limitation of "violent material".
The manner in which all three areas are purchased in the UK has changed dramatically. Alcohol and tobacco are now sold in supermarkets and the internet has revolutionised the way adult material is viewed. It is highly unlikely that Tesco, Sainsbury or any other leading supermarket would make more than 10% from alcohol and tobacco. And if that were the case, it would lead us to question the very nature of the business model.
We also avoid companies that use animals to test cosmetic or household products and businesses with intensive practices such as battery farming or fish farming.
Ecclesiastical seeks investment in companies whose activities include the following positive attributes:
- Business Practices – following ethical practices towards customers, including maintaining product quality, ethical sources of supply, opposing corruption and respecting indigenous peoples
- Community Relations – making charitable donations, employing local people, offering work placement schemes
- Corporate Governance Practices – transparency, anti-bribery and corruption codes, adhering to International Labour Organisation regulations on labour and child labour
- Education – providing training and development along with access to education
- Environmental Management – supporting biodiversity, managing their climate change impact and carbon footprint, water conservation, air pollution and managing waste and recycling and supporting renewable energy
- Healthcare – providing affordable healthcare and access to medicine
- Human Rights – supporting basic human rights by adopting the United Nations Universal Declaration of Human Rights
- Labour Relations – promoting equal opportunity and diversity, health and safety, transparent pay structure, union participation, professional development, employee participation, whistleblower protection
- Urban Regeneration – supporting affordable/ social housing
Ecclesiastical also actively incorporate the following in their criteria:
- animal testing: they don't invest in companies using animals to test cosmetic or household products. They do invest in companies that utilise animal testing for pharmaceutical research, but would encourage them to develop and use alternatives, like computer modelling
- oppressive regimes: companies operating in countries with oppressive regimes are considered on a case-by-case basis. They aim to distinguish between activities that benefit people and those that support the regime.
Positive Engagement for Change
Ecclesiastical believe that engaging actively with businesses can be a powerful tool for change.
Through their research and investment they can develop a constructive dialogue with companies, which provides a platform for discussing any concerns we have. It also gives them the chance to ensure they are maintaining the social responsibility practices that attracted us initially.
They also vote on the corporate governance or ethical issues that come before general meetings - sometimes collaborating with other organisations to exert maximum influence. In fact they take every opportunity to make sure their voice, and the voice of their investors, is heard.
In-House financial and socially responsible analysis
Fund Managers work with Ecclesiastical's in-house team of Socially Responsible Investment Analysts to carry out thematic and stock-specific research, identifying new investment ideas and initiating an on-going dialogue with companies. It's an integrated system that brings their fund managers ownership of the whole process. They operate with a much deeper knowledge about what their candidate companies are actually doing and so are better equipped to make more considered and careful investment judgements.
Ultimately this offers an added layer of assurance that your money is actually being invested in companies that they know are contributing to a safer, cleaner, better world and that are managed efficiently and correctly.
Independent supervisory panel
All stock buying decisions, policies and processes are subject to the review of an external panel.
The Amity Panel reviews and monitors the operations of the funds. Established for over 20 years, it comprises of senior individuals from financial and business backgrounds. Panel members receive all Ecclesiastical's financial and social responsibility research reports. The Amity Panel plays a key role in assessing compliance with their socially responsible criteria. It meets regularly with Ecclesiastical's Fund Managers with the ultimate power to challenge and reverse decisions if they feel it is necessary.
Ecclesiastical investment approach
Ecclesiastical seek to achieve long term capital returns within a principled framework. They start with a 'stock picking' approach - looking for individual companies with sound financials, good management, growth prospects and the potential to generate strong cash-flow.
If the 'financials' look attractive, they apply their negative and positive screening criteria, capturing a company's socially responsible credentials. When investing in a company they usually take a position whose potential is in their corporate plans for long term business growth. They avoid churning shares for the sake of it, preferring to build enduring relationships with the companies they invest in.
Investment Risks to consider
Unlike Deposit and Cash ISAs, stock market based investments such as the Ecclesiastical Amity International fund are not guaranteed and can both fall in value as well as rise. On this basis, we believe that you should only consider investing for the medium to longer term, (ideally a minimum of 5 years plus). Irrespective of how long you invest for, it is still possible that you may receive less back than you invest. The value of the investment and any income and yield that may be payable will fluctuate over time and so cannot be guaranteed.
Past performance should not be seen as an indication of future performance and exchange rate changes can have a possibly negative impact on the value of shares invested outside of the UK.
As this is a direct offer, then you should make yourself familiar with the important documentation which we have highlighted above before you decide to invest, including the Key Features document (create link) Terms and Conditions and our Client Agreement Form.
Fund specific risks
- Concentrated Funds - These funds may invest in a relatively smaller number of stocks. This stock concentration may carry more risk than funds spread across a larger number of companies.
- Smaller Company Funds - Smaller companies shares can be more volatile and less liquid than larger company shares, so smaller companies funds can carry more risk.
- Sector Specific Funds - Funds which invest in specific sectors may carry more risk than those spread across a number of different sectors. They may assume higher risk, as markets/sectors can be more volatile. In particular, technology funds and other focused funds can suffer as the underlying stocks can be more volatile and less liquid.
- Down as well as up - The value of investments, and any income can fall, as well as rise, so you could get back less than you invested. Neither capital nor income is guaranteed.
- Long term - Investments should be regarded as long term and are not suitable for money which may be needed in the short term, you should always have a sufficient cash reserve.
How to Invest
To move ahead and invest in the Ecclesiastical Amity International ISA then you should firstly make sure that you have satisfied yourself that the investment is suitable for your circumstances and fully read the information on this web site, and also downloaded and read the following information :
- Ecclesiastical ISA terms and conditions
- Ecclesiastical ISA simplified prospectus
- Profit With Principle Client Agreement Form
You will then need to print out and complete the following :
- ISA application form
- Profit With Principle Direct Offer Confirmation Form
Please then return the ISA application form with a cheque for at least £5,000 and no more than £10,680 made payable to 'Ecclesiastical Investment Management Ltd' to the following address :
Greg McCrave (Director)
Profit With Principle Ltd
St Walburges Centre
St Walburges Gardens
Preston
PR2 2QJ
Please do not return the form direct to Ecclesiastical or you may not receive the discount described above. If you wish to invest a smaller or larger sum or on a regular monthly basis then see below (link below to paragraph on Other Information)
- Finally we require to verify your identity via the following process:
We are required to verify the identity of any individual undertaking an investment through our company.
Normally we are able to use an on-line Credit Reference agency (such as Experian®) to verify the identity of the majority of our clients, and so you simply need to confirm that you are happy for us to undertake an identity check in this way.
If you do not wish for your identity to be verified in this way we would request that, when returning the aforementioned application forms, you also enclose a certified copy of either your driving licence or passport to verify your identity (please note, certification must be undertaken by a professional, such as a teacher, doctor, policeman or another professional). In addition, we also need to verify your residency. Please post us a certified copy of either a recent bank statement or a utility bill (must be dated within the last three months and cannot be a mobile phone bill). This documentation will be returned to you as soon as possible.
What else you need to know before making an investment decision
You can change your mind and cancel this investment within 30 days from the day you receive your documentation and, within this period, Ecclesiastical will return your investment. However, if you have made a single payment and the value of the investment has fallen prior to your decision to cancel, then you will get back the original payment, less any fall in the value during this period. To cancel, you will need to inform Ecclesiastical in writing of your wish and include your name and address and reference number. If you do not cancel within the 30 day period, your investment will remain in force and the standard terms for selling your shares will apply, and the value may be less than the payments you have made.
This communication does not represent financial advice and we have not assessed the appropriateness of the Ecclesiastical ISA offered for your individual requirements and circumstances. It is for you to decide whether the Ecclesiastical ISA meets your objectives and whether you are able to financially bear any loss that the ISA may cause. If you are unsure as to the suitability as to the product on offer, then you should seek advice and we would be happy to provide this service to you. Please contact Mr Greg McCrave, Director of Profit With Principle Ltd on 01772 733338 should you require advice.
Profit With Principle Ltd has negotiated a full reduction in the initial charge. This means that the standard initial fee of 5% is reduced to 0% and so saving 5% off the initial charge, equivalent to £316 for a maximum £10,680 investment in an ISA for the 2010/11 tax year. From 6 April 2011 the ISA subscription limits will be increased each year by the Retail Price Index (RPI). These terms are not available by proceeding with this ISA direct with the product provider and are only available through Profit With Principle Ltd under the terms of this direct offer. The annual management charge on the fund remains at the standard rate of 1.5% p/a.
For arranging this ISA, Ecclesiastical will pay commission to Profit With Principle Ltd via the TenetConnect Network of 0% immediately and 0.5% of the fund value each year. For example, if your investment was £10,000, we would receive 0% immediately and thereafter, if the fund was worth £10,000, we would receive £50 p/a. Payments would be made each year in arrears.
In order to qualify for the 5% reduction on the initial charge, then a minimum investment amount is required of £5,000. If you are considering investing a smaller sum than this amount, we would still be able to offer a significant discount and we would recommend that you contact us to establish what this will be. The discount off the initial charge will vary depending upon how much you have to invest at this time. If you wish to consider undertaking a regular monthly saving plan and investing into this ISA product, then we will, again, be able to offer a discount of initial charge on each contribution and this will depend upon the level of your regular contribution, so please contact us for details.
Please note that you cannot invest more than £10,680 into an Investment ISA in any tax year and that any applicants must be a UK resident and over 18 to buy and Investment ISA. If you have already utilised your Cash ISA allowance in this tax year of up to £5,100, then this must be deducted from the maximum £10,680 allowance so that, in total, you do not exceed this figure in a single tax year.
Where to go for more information
The following is a link to the current Fund Fact sheet for the Ecclesiastical Amity International Fund:
The following is a link to further literature on Ecclesiastical's ethical investment approach:
The following is a link directly to Ecclesiastical's website and further details on their Socially responsible range of investment funds
Ecclesiastical investment funds
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