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SRI - Our philosophy

We believe we have identified a significant area of the economy where the market regularly mis-prices future profits of companies and where we can exploit an information advantage.

Our research predicts that the social and environmental resources that underpin our economy are forcing a rapid and unavoidable shift in the shape and structure of future economic growth.


There are a number of examples of this, but it can be demonstrated most fully by considering the broad picture of the natural resources currently being used by the global economy.

The WWF Living Planet graph shown below for instance, calculates that we are already operating beyond the limits imposed by our physical environment, a situation which is unsustainable.

	Source: Aviva Investors and WWF International ‘Living Planet Report 2006’

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Humanity’s ecological footprint is an estimate of how much of the productive capacity of the biosphere people use. To allow economic growth to persist in this situation requires a radical increase in the efficiency with which our economies deliver their services and a fundamental change in the nature of these services. This will favour companies that are able to deliver these services more efficiently.

Where we differ from the consensus or market view is in the magnitude and rapidity of this shift to a more sustainable pattern of economic development. We believe, and our experience has shown, this is consistently underestimated by the market.

This is our source of information advantage which, when coupled with a rigorous and disciplined investment process, can lead to enhanced investment returns.