Claudia Quiroz

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The Challenges of Constructing a Sustainability
Fund
Whose Brains? ESG Data and Intellectual Property
Claudia Quiroz Fund Manager Cheviot Sustainable
Investment
London Accord - Autumn Conference October 2010
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What You Should Know Before We Start

• The Speaker Claudia Quiroz
• 10 years of fund management experience
• Sustainable Responsible investment specialist
• The Company Cheviot Asset Management
• Largest independent asset manager
• AUM 3.2 billion
• The Fund Climate Assets Fund
• Launched March 2010
• Investment themes

Climate Asset Fund
Population increase of 50 by 2050 Energy
increase demand of 50 by 2030 Food increase
of demand of 50 by 2030 Water increase of
demand of 30 by 2030
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as at 30.09.10
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Challenges Strategies of New Product
Development

• Thinking Framework
• My MBA Text Book
• Challenges of Developing a New Product
• Analysing Industry Competitors
• identifying market segments selecting market
  target
• Identifying the Products USPs (Unique Selling
  Points)
• differentiating positioning the market offering
• Understanding the Consumers Adoption Process
• analysing buying behaviour

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1. Analysing Industry Competitors
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2. Identifying the Products USPs

• Investment Strategy
• Multi- asset / Multi-thematic
• Reduce Volatility / Increase Liquidity
• Investment Process
• Top-down
• Bottom-up
• Capital Appreciation Income
• Dividends from equities
• Interest Income from coupons

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3. Understanding the Consumers Adoption Process

• Innovation
• The early adopter paradigm
• Track Record
• The new product dilemma
• Outperformance
• Past performance is not necessarily indicative of
  future performance

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Why Should Investors Look At Sustainability
Investing?

• Government Support
• Economic growth job creation
• Growth
• High digits growth
• Consumer Preferences
• Makes economic sense

Thematic Allocation of Green Stimulus (USD 512bn)
Source HSBC estimates, government announcements,
Cheviot
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Key Takeaways

• Fund is no different from any other product
• General product development and marketing
  strategies
• Sustainability / Climate Change Investing is
  worth having
• Growth is key differentiator
• Consider the Climate Assets Fund
• Unique innovative product

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Disclaimer

• The information provided in this document are
  from sources that Cheviot considers reliable but
  Cheviot provides no guarantees as to the accuracy
  of this information. Information has been
  provided from different sources including the
  International Energy Agency (www.iea.org), the
  Intergovernmental Panel on Climate Change
  (www.ipcc.ch) and the Food and Agriculture
  Organization (www.fao.org).
• The investment views reflect the current views of
  Cheviot's Sustainable Investment team which are
  subject to change. The investments or services
  mentioned in this document may not be suitable
  for all investors or be appropriate for their
  personal circumstances. If you are unsure as to
  whether the investments described in this
  document are suitable for you, we strongly
  recommend you seek professional advice from a
  financial adviser.
• Past performance is not necessarily indicative of
  future performance. The value of investments and
  the income derived from them may fluctuate and
  you may not receive back the amount originally
  invested. Currency movements may also affect the
  value of investments.
• Cheviot Asset Management Limited is authorised
  and regulated by the Financial Services Authority
  and is a member firm of the London Stock
  Exchange.