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Approach

EdenTree is a responsible and sustainable investment manager with a focus on delivering consistent, long-term returns. Core to how we deliver this is our contrarian, value-based stockpicking approach, which underpins our fund range. At the very heart of EdenTree is Amity, our unique and holistic approach to responsible and sustainable investing.

Our Philosophy

We pride ourselves on taking a truly active approach to investing.

For us, this means being benchmark aware, not benchmark constrained. We have found this contrarian approach can deliver significant outperformance over the long-term when combined with fundamental stockpicking factors to identify intrinsically sound, value-orientated companies. Combined with our responsible and sustainable investment process, this provides us with a truly active edge to our portfolios.

amity portfolios
amity portfolios

Our Process

Our fund managers and responsible investment team work in parallel to deliver Profits with Principles.

We employ a process whereby responsible and sustainable factors are fully integrated into the investment management process, with our fund managers and responsible investment team working side by side to generate ideas, analyse opportunities, create meaningful and diversified portfolios and undertake ongoing evaluation. 

At a stock level, we look for companies that have meaningful market share, strong cash-flows, good management, robust balance sheets, high levels of recurring revenues and high barriers to entry – in short, business models that can deliver regardless of the macroeconomic and geo-political backdrop.

process infographic
process infographic

Our Amity Approach

We fully integrate ESG risk factors across our investment process in order to deliver superior returns and add value for clients.

This integrated approach covers four key areas: screening, engagement, governance and thought leadership research. It is a holistic approach, which we define as responsible and sustainable investing.

research

EdenTree’s thought-leadership research draws on an unrivalled depth of expertise that has built up over 30 years as pioneers in responsible and sustainable investing. Our responsible investing team regularly publish expert opinion pieces, which help to inform our clients and drive idea generation within our investment team. Three times a year we produce our flagship Amity Insight publication, which provides a sustainable perspective on some of the biggest challenges facing our world today and how we, as responsible and sustainable investors can be a part of the solution.

Our fund managers also regularly write on a range of industry topics, from macro-economic and geo-political viewpoints through to individual stock ideas and how they are finding opportunities that align with our responsible and sustainable investment approach.

Research Insights

Economic Inequality
Amity Insight reports03 Oct 2019

Economic Inequality

Economic inequality is one of the greatest structural challenges facing many societies today. Higher levels of inequality have been shown to undermine democracy, fragment societies, lead to populism and result in higher levels of ecological destruction. Our latest Amity Insight: Mind the Gap looks at the recent history and current state of economic inequality and the role that investors can play in addressing it.
Tax
RI expert briefings10 Oct 2019

Tax

Why we really should be celebrating 45 years of Health & Safety
Opinion 26 Sep 2019

Why we really should be celebrating 45 years of Health & Safety

Is Cash No Longer King?
Webcasts/Videos24 Sep 2019

Is Cash No Longer King?

Reflections on PRI in Person 2019
Opinion 19 Sep 2019

Reflections on PRI in Person 2019

See the latest research on the amity hub

Visit the Amity HUB

screening

To be considered suitable for inclusion within our Amity range of responsible and sustainably managed funds, an investment idea must meet the criteria laid out by our screening model. There are three parts to this: ethics/ values, responsibility/ ESG and sustainability/ thematic. 

The eight exclusion criteria which make up the ethics/ values aim to avoid activities that are harmful to society. Companies that derive more than 10% of their profits or turnover from these activities are excluded from our universe of investible stocks. 

We then integrate six areas of business risk (responsibility/ ESG), which are core to the way in which we consider stocks as being suitable for inclusion in our Amity funds. The responsibility/ ESG risk criteria can also act as a brake on investment. Finally, we look at companies from a sustainability/ thematic angle. As we screen stock ideas, we consider the positive sustainability case in terms of products and solutions. This is a discretionary part of stock selection, as not all companies provide sustainable solutions.

Mandatory

Ethics/Values

Alcohol production

Manufacturers of alcoholic beverages, but not retailers (except dedicated pub companies).

Tobacco production

The manufacture of tobacco products, but not tobacco retailers.

Gambling operations

Includes betting shops, internet sites, bingo and casino, racing venues, lotteries and the supply of gaming machines.

Weapons production

The manufacture of weapons and weapons systems or goods and services specifically to support those systems.

Pornographic and violent material

Includes print, digital and broadcast media plus companies operating dedicated licensed sex premises showing live shows.

Animal testing

We will not invest in companies that use animals to test cosmetic or household products. We do invest in pharmaceutical companies that may use animals to test but we encourage them to use alternatives.

Intensive farming

We avoid companies involved in intensive farming in the beef, dairy, poultry or fish sectors.

Oppressive regimes

Companies operating in oppressive regimes (as defined by Transparency International, Amnesty International and Freedom House) are reviewed on a case-by-case basis.

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Responsibility/ESG

Business ethics

  • Business Codes of Conduct
  • Product Quality & Safety
  • Ethical Business Conduct
  • Culture & Behaviours
  • Financial Conduct
  • Ethical Sourcing
  • Supply Chain Relationships
  • Taxation Policy Disclosure
  • Farm Animal Welfare
  • Lobbying Policies

Corporate governance

  • Code Compliance
  • Independent NEDs
  • Pay for Performance
  • Board Diversity & Policy
  • Anti-Bribery Policies
  • Whistleblowing Programme
  • Cyber Security
  • Audit and Non-Audit Fees
  • Related Party Transactions
  • Political Donations

Community

  • Community Liaison
  • License to Operate
  • Project Finance Risk
  • Resettlement Policies
  • Giving Programmes
  • Health Education & Welfare
  • Access to Medicine
  • Training & Apprenticeships

Employment & labour

  • ILO Protocols
  • Equal Opportunities
  • Diversity Policy
  • Anti-Discrimination
  • Fair Reward Structures
  • Freedom of Association
  • Collective Bargaining
  • Training & Development
  • Health & Safety
  • Occupational Wellbeing

Environmental management

  • Climate Change
  • GHG Emissions
  • Resource Depletion
  • Water
  • Pollution
  • Natural Capital Policies
  • Waste & Recycling
  • Energy
  • Soil & Forestry
  • Sustainable Products

Human rights

  • Human Rights Policies
  • Support for UDHR
  • UN Guiding Principles
  • Child Labour
  • Bonded & Forced Labour
  • Trafficking & Slavery
  • Indigenous People
  • Land Rights
  • Sanctions & Conflict Risk
  • Conflict Minerals
More
Discretionary

Sustainability/Thematic

Education

  • Education
  • Training
  • Human development
  • Promoting girls education
  • Student housing and support

Health & wellbeing

  • Affordable healthcare
  • Access to medicine
  • Pharmaceuticals R&D
  • Biotechnology
  • Critical Care
  • Nutrition and wellbeing

Social Infrastructure

  • Social Housing
  • Affordable Housing
  • Community & Housing Associations
  • Urban Regeneration
  • Brownfield Development
  • Public Facilities

Sustainability

  • ESG alignment
  • Products and solutions
  • Circular economy
  • Sustainable development goals
  • Impact investing (Fixed Interest)
  • Amity thought leadership
More

governance

We believe that shareholders have a vital role to play in encouraging high standards of corporate governance from the perspective of being long-term investors. We therefore seek to vote at all UK company meetings in which we have a shareholding, and have appointed Glass Lewis & Co. as our proxy advisory service for overseas governance and voting. We have adopted a policy of voting in support of company management except where proposals are considered to be in breach of UK corporate governance best practice, or are viewed as not being in the economic interests of shareholders.


As long-term investors, we believe a pragmatic approach best fulfils the objective of building shareholder value over time. We will seek to engage pro-actively with companies where either existing corporate governance arrangements or management proposals cause concern. We are signatories of the Principles for Responsible Investment (PRI) and the European SRI Transparency Code, and we publish full guidelines around our governance and voting procedures here on our website.

Voting Reports

RI Credentials 26 Jul 2019
PRI Transparency Report 2019
RI Credentials 26 Jul 2019
PRI Assessment Report 2019
RI Credentials 06 Feb 2019
UK Corporate Governance Policy 2019
RI Credentials 06 Feb 2019
UK Stewardship Statement 2019

See the latest research on the amity hub

Visit the Amity HUB

Our Amity Panel

Independent oversight from a panel of responsible and sustainable investing experts.

The Amity Panel is an external panel of senior financial, environmental and business figures appointment for their knowledge and expertise to monitor the operation of our Amity approach. They review investment ideas, give advice on key ESG issues and independently oversee our investment process, ensuring that we comply with our own responsible and sustainable investment criteria.

Rt Rev Dr Nigel Peyton

Rt Rev Dr Nigel Peyton

Panel Chair

The Rt Rev Dr Nigel Peyton was elected and consecrated Bishop of the Diocese of Brechin in 2011, returning to the City of Dundee where he was ordained in 1976. Between 1985 and 2011 Nigel served in the Diocese of Southwell & Nottingham, first as an inner city vicar and from 1999 as Archdeacon of Newark and Canon of Southwell Minster. Nigel has been a long-serving member of the Church of England’s General Synod, a school governor and chaplain, magistrate and a Non-Executive Director of Ecclesiastical Insurance Group (2005-2012).

George Prescott

George Prescott

Chartered Accountant, BA FCA

George Prescott is a chartered accountant and until his retirement in 2009 was Deputy Group Chief Executive of Ecclesiastical Insurance Group. In the UK he is chairman of Giles Insurance Brokers, a member of the board of JP Morgan Cazenove Pension Trustee Company, and a Director and Chairman of the Audit Committee of Capital Gearing Trust Plc. He is also a director of Mapfre USA and Commerce Insurance (US). He is a trustee of M&G Charibond and Charifund. George is also a member of the Court and of the Finance & Investment Committee of the Worshipful Company of Coopers.

Helen Crosby

Helen Crosby

Environmental Consultant

Helen joined the Advisory Panel of the Amity Fund in 2008. With an ecological, business and legal background, Helen's specific interest is in understanding the contribution of environmental and social issues to business risk. Helen is an independent consultant specialising in environmental and sustainability issues with a focus on environmental assessment, working to national and international standards. Helen also has experience in sustainability appraisal, feasibility assessment, and strategic development projects across a range of industries including infrastructure, manufacturing, mining and services, having worked in the United Kingdom, United States of America, southern and east Africa and Mongolia.

Julie McDowell

Julie McDowell

Independent Consultant

Julie McDowell is an independent consultant with over 25 years’ experience in law and finance. From 2001 to 2013 she led the Responsible Investment Team at Standard Life Investments, one of the UK’s largest fund managers. She specialised in extractive industries for over ten years and has served on numerous advisory groups relating to extractive industries, human rights, climate change and corporate reporting. She was a member of the Board of the Extractive Industries Transparency Initiative (EITI) from 2009 to 2013 and chaired the Validation Committee from 2009 to 2012.

Bill Seddon

Bill Seddon

Former CEO CFB Methodist Church

For 30 years, until retiring in 2017, Bill Seddon was Investment Manager and Chief Executive of the Central Finance Board of the Methodist Church and a member of the Methodist Church Joint Advisory Committee on the Ethics of Investment. He was also the CFB Observer on the Church of England’s Ethical Investment Advisory Group, a member of the Joseph Rowntree Charitable Trust Investment Committee and Trustee of the EIRIS Foundation. Currently he is the CFB’s Special Adviser on ethical issues, Director of Dominion Insurance and an elected representative of General Synod on the Church of England’s Pension’s Board.

Julian Parrott

Julian Parrott

Client Member, Ethical Futures

Julian Parrott is an independent financial planner specialising in ethical and sustainable investment advice. Julian has over 25 years’ experience in financial services, encompassing building society management, life assurance sales and financial planning & advice. He is the founding partner of the Ethical Futures llp and holds the ISO 22222 standard in financial planning. Julian is active in promoting ethical investment to the public and adviser community. He has served on the board of UKSIF & Ethical Investment Association. He is a Director of the Ethical Finance Hub project as well as other consultancy roles. Julian is a fellow of the RSA.

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About us

Our Non-screened funds

In addition to our Amity range, we also offer two non-screened funds.

These funds are not subject to the same screening and review process as the Amity funds. However, clients still benefit from our responsible investment team carrying out voting and engagement activities on our non-screened funds.

non screened
non screened

Higher Income Fund

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UK Equity Growth Fund

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