Responsible Investment: Money as a Force for Good

& Financial Wellbeing in a World Worth Living In

 WELCOME
MESSAGE

“ Welcome – welcome to CF Wealth management and I hope you have an enjoyable

evening.

The purpose of tonight, besides having an enjoyable evening, is to introduce CF

Wealth Management to you. To explain where we fit in within St James’s Place,
who we are and what we stand for.
At the same time I want to introduce the idea that money can be invested as a
force for good. Something that has become very important to me and something
I’ve become passionate about since joining SJP is Financial Education – we have the
responsibility to teach our children the importance of money; how to earn it, how
to keep it and how to grow it.

”
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 ABOUT US

So firstly who are we. Well, I’m sure you have all heard of St James’s Place, some as clients, some by reading the Sunday Times… and
what probably comes to mind when you think about St James’s Place is pensions, investments (and more recently cruises, cufflinks,
fees).

But who are CF Wealth Management?

Why have we decided to invest our clients’ money with SJP and operate our business within the St James’s Place community and on
the SJP Platform?

www.sjp.co.uk 2019
 ABOUT US

CF Wealth Management is a multi-

jurisdictional practice with offices in
London and Hong Kong. We are uniquely
positioned to help clients transferring to
Asia or moving back to the UK.

Prior to joining St James’s Place, I co-founded and ran an IFA company in Asia. This grew to having offices in Hong Kong, Shanghai and
Kuala Lumpur. But then SJP came knocking…

So why did I decide to leave my own company and join St James’s Place?

www.sjp.co.uk 2019
 WHY?
Primarily to access this platform and gain access to:

The technical expertise An investment process that delivers for

SJP can provide its clients. That is robust, repeatable and
evolving
A company that understands the positive
impact of face to face advice but also
takes responsibility for when it doesn’t
get it right by guaranteeing no client is
negatively impacted by poor advice

Clear simple messages The best fund

managers globally

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 ABOUT US
Within this proposition we also have strategic
partnerships that further help to add value to
our clients in areas we don’t have capabilities.
Before I get into speaking to you about Financial
Education, I’d like to introduce you to a
particularly important relationship that we have
with Ocean-Forex. As the world becomes
smaller and in particular with CF Wealth
Management’s connection to Asia, the transfer
of funds seamlessly around the world and Here’s a short video from Ocean Forex
securing the best fx rates is extremely important
to our clients. Ocean Forex specialise in
providing these services.

The team from Ocean-Forex are here tonight.

And I’d encourage you to speak to them if you
have any foreign exchange needs.

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 Wealth
Management
Platform
Catering to all
your Financial
Needs

www.sjp.co.uk 2019
 ABOUT US

So we believe that CF Wealth Management provides a Platform that delivers

for its advisors and their clients. A platform designed for creating financial
well-being for its clients. Whatever your need, we’ve got you covered.
I intend to run more events and workshops in 2020 designed at giving you
the opportunity to understand each of these areas in more detail and to
introduce you to more of our partners.

However, whilst the platform gives me confidence that I can help my clients
achieve their financial goals, it’s not the platform that makes me proud to
say I’m an SJP Partner, proud that CF Wealth Management is a Partner
Practice of St James’s Place.

And that brings me to the theme of tonight’s event- that is money can be a
force for good. And this is what really gets me excited, yes this is me excited.

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 Financial Education

As I mentioned in my introduction, I want to talk to you tonight about Financial Education. I want to introduce you to our Director of
Investment, Robert Gardner. He’s a big advocator of teaching the importance of financial literacy to children and believes that financial
literacy is as important to children as maths.

A few years ago Robert did a TedTalk which I would encourage you to watch if you have the opportunity. For sake of time I will
summarise the key messages from his talk tonight.

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 Einstein’s Theory!

Robert feels passionately that we need to teach our children from a young
age the importance of money : how to Earn It, Keep It and
importantly to Grow It.

The importance of Compound interest and making money from money.

It’s alleged that Albert Einstein said that the Eighth wonder of the world
is compound interest. He who understands it, earns it, and he who
doesn’t, pays it.

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 Financial Education

Are you earning it? Or maybe you don’t and maybe you’re paying it?
But wouldn’t you want your children to learn about the 8th wonder of the world,
compound interest? How to grow money, how to make money from money?
How many of us got financial
education at school? How many of us
wish we had got financial education at
school and didn’t have to learn it the
hard way?

In his talk, Robert mentions government statistics that 25M adults in the UK are financially vulnerable and 4M are 1 month away from
Bankruptcy. Living pay cheque to pay cheque.
Unfortunately, money is a taboo subject, and no one wants to talk about it. Parents would often rather talk about sex with their
children than money.

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 Financial Education

Robert goes on to talk about why he thinks there’s no Financial Education as part of our curriculum. He believes that Financial
Education is seen as:

•Boring
•Too complicated
•Don’t start early enough – scarily,
apparently we learn our money habits at 7 years old.

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 Rob’s Challenge!

Rob set up a charity called RedStart and designed a fun game to help teach children the important concepts around money: how to
earn it, how to keep it, how to grow it and the basic principles of compound interest.

To give you an example, he challenges children to build towers out of

bricks. The higher the tower, the more money they earn in interest.
The children have two options; either they build the tallest tower they
can to earn the most interest, or alternatively they build a group of
smaller towers, making less interest but then building interest upon
interest.

You won’t be surprised to hear that most children choose the first
option. They build as high as they can, but as they place that final
block, the tower often falls and they earn nothing. Building lower,
securer towers is often the best way to safely earn their interest.

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 ‘Save
Your
Acorns’!

Robert Gardner is also the author of the book ‘Save Your Acorns’.

The book aims to teach children the idea that saving for the future is
important. This is often a challenge for children, as it’s natural for them to
want things right away. Think about how our children experience money
these days, with ATMs and credit cards- parents order something on their
phones and the next day a delivery arrives…

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 WHAT IS
RESPONSIBLE
INVESTMENT (RI) ?

The story of ‘Save Your Acorns’ shows that wasting things – in this case
acorns – can have serious consequences. But as Amelia and Oliver learn in
the story, if you work hard and save, you can make sure that you will have a
supply of acorns when you most need them.

It is demonstrating the importance of delayed gratification, which is a

foundational habit to financial responsibility and financial literacy. And we
can start at a young age.

Investing to achieve your financial well-being,

in a world worth living in!

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 Responsible Investing or ESG
Environmental, Social and
Corporate Governance

The concept here is using money as

a force for good. Helping everyone
achieve their financial outcomes in
a world worth living in. And this is a
concept I’m going to keep coming
back to.

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 Financial Literacy

Rob’s contention is this, let’s not wait for the government to introduce financial education on the school syllabus. Let’s start having
conversations now with young people about the taboo subject of money.

I’ve got 2 daughters aged 7 and 8 and I want to make sure they are financially literate.
That’s why I have recently become a RedStart Ambassador and why I am looking to introduce RedStart into my local schools.

If you have connections to schools or want to make sure your children benefit from Financial Education, then please let me know.

Why is this so important?

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 Global Risk Environment

Every year, the Wold Economic Forum reports on the word’s

biggest risks

For the third year in a row, environmental risks account for 3

Impact

of the top 5 global risks by likelihood and impact:

1. Extreme weather events

2. Failure of climate change mitigation and adaptation
3. Natural disasters

Or put another way…CLIMATE CHANGE

Likelihood
Source: World Economic Forum, Global Risks Report 2019
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 The Climate Data is now here, and clear!

We are operating far outside ‘normal fluctuations’.

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 Sustainability as a source of thematic opportunity and risk

From Depletive economic model To Sustainable economic model

Key Drivers

Technology
Science
Social change
Regulation
Two planet living Growth within limits

Management of sustainability factors today is vital for protecting or enhancing the value of our clients' wealth,
as well as the ability of future generations to protect or enhance their wealth

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 ‘ESG’ as a source of
investment risk and
return

• Companies with good ESG performance

tend to outperform those with poor ESG
performance

• Graph shows that leaders outperform the

laggards by ~4.8% per annum

Source: Eccles, Ioannou and Serafeim, Harvard Business School, 2014

ESG analysis provides an additional lens for
investment decision making
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 Magnifying Personal
Impact

Allocating investments in a mindful

manner can be part of an holistic approach
to a sustainable lifestyle

OUR MONEY IS A FORCE FOR GOOD

Source: Nordea, 2018

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 Magnifying Personal
Impact

In the US, 8 out of 10 companies have ETFs/Passive funds as their

largest shareholder. This creates lazy companies, because these
funds do not allocate capital according to good corporate
governance or social responsibility. More importantly, they do not
exclude companies for bad behaviour. This is not purposeful
investing, this is not using investment as a force for good.

There’s no doubt that as we look to the future, Capitalism needs to

become more purposeful. It needs to really think about its impact
on the planet and the environment, and at the highest level that is
climate change.

Source: Nordea, 2018

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 SJP Portfolios Carbon Footprint vs Benchmark

300

30% lower 29% lower 33% lower

244 48% lower
250 than a than a than a than a
20:80 50:50 225 70:30
213 90:10
CO2 tonnes/ $m sales revenue

benchmark benchmark benchmark benchmark 201

200
171
160
150 143

104
100

50

Data – 03/09/2019,
Aladdin, MSCI ESG 0
SJP Cautious Cautious SJP Balanced Balanced Asset SJP Steady Steady Growth SJP Equity Risk Equity Risk
Data Benchmark Asset Benchmark Growth Benchmark Benchmark

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 How many of you………

How many of you are currently considering ESG

factors when you invest?

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 How many of you………

How many of you try to or would like to reduce your

carbon footprint?

What if I told you that by investing your pensions or

ISAs in a sustainable way, you can have 27x the
impact of reducing your carbon footprint than if you
flew less, ate less red meat, cycled more..

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 Magnifying Personal
Impact

When you invest your money you can make your money a real force for good. The magic of St James’s Place is a bit like compounding.
They are able to take client funds, aggregate them together and then they are able to have real scale and influence with BlackRock or
any of other fund managers around world to ensure that investments are made in a sustainable way. So, we can help someone invest
their money, aggregate it up into St James’s Place, influence the largest fund managers in world and really make sure that money is a
force for good. And it’s pretty simple really, because wealth and prosperity is only really worth something in a world worth living in, for
us and for the next generation. Who will of course all be financially literate thanks to organisations like RedStart…..

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 Climate change is an investment issue

Responsible Investment
supports a smooth
transition to a low
carbon environment

www.sjp.co.uk 2019
 Together We Have
Scale & Influence

£8trn* = Total
assets of our Investee
investment companies
managers

SJP client
£100bn +
investments

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 Magnifying Personal
Impact

There’s no doubt that as we look to the future that capitalism needs become more purposeful. It needs to really think about its
impact. It is not just about the extraction of value for the creation of profit. It also needs to think about its impact on the planet,
the environment and the communities in which we operate. I think the below message from our CEO Andrew Croft about our
Corporate Responsibility is a great message :

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www.sjp.co.uk
 Charity

Finally, I want to mention the SJP Foundation!

St James’s Place has a commitment to helping those less fortunate and this is built into its business plan and DNA. This is evident
from the SJP Foundation.
Almost 90% of the Partnership and employees give on a regular monthly basis. This raises in excess of £1.6 million before company
matching and Gift Aid each year, meaning the Foundation receives over £3.6 million from this source alone.

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 Charity

In addition, we do all sorts of activities to raise money for the

Foundation from cake sales to getting in the ring for charity.
St. James's Place Wealth Management Group and has so far
raised over £70 million and all of that money goes to good
causes. No money is taken out for administration, 100% goes
to good causes.

Even our shareholders get involved as every Pound raised is

matched by St James’s Place.

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 Charity

Here’s a short video to give you an insight into some of the charities we have supported so far this year.

https://intranet.sjptv.co.uk/all/video/5d2debb6fbb457152b5c7b62?token=efcc292201d098f602662a952e34c8e4&viewer=912148S

The reason I wanted talk about this tonight is I want to encourage you to come talk to me about any charities you support, or are
passionate about, as I’d like to get involved. If it’s important to you then I want to see how you can benefit from working with our
Foundation… together we can make a bigger impact or get your charity a grant. So please, come speak to me. Who knows, I might
even get Thanks very much for listening, and I hope you enjoy the rest of the evening.

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www.sjp.co.uk

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