ECIC Strategic Framework

1 Overview

Central repository for Ethical Capital’s strategic positioning, competitive advantages, and long-term direction. This framework guides all operational decisions and ensures consistent execution of the firm’s unique approach to ethical investing.

2 Strategic Vision

“The EF Hutton of ethical investing” - Building authoritative voice and selective access in values-aligned finance, where clients compete to get in rather than advisors competing for clients.

3 Competitive Moat

ECIC’s competitive advantage rests on two foundational pillars that create sustainable differentiation in the ethical investing space:

3.1 Pillar 1: Radical Ethical Alignment

Achieved through proprietary, rigorous research that goes far beyond traditional ESG metrics.

Key Components: - Proprietary Screening Process: Comprehensive, in-house exclusion database covering 57% of S&P 500 - Community-Driven Evolution: Client ethical concerns become universal exclusions for all portfolios - Depth Over Breadth: Focus on direct harm to living things, emissions, human rights violations - Transparent Methodology: Open-source exclusion criteria and reasoning - BDS Compliant Since Inception: Clear positioning on contested ethical issues

Competitive Advantage: While competitors rely on flawed third-party ESG ratings, ECIC maintains proprietary research creating portfolios “radically different from the broader market.”

3.2 Pillar 2: Deep Human Connection

Facilitated by client-centric, transparent, and non-discriminatory service model.

Key Components: - No Wealth Minimums: $1 minimum investment combats “original sin” of prioritizing wealthy clients - Unlimited Time Commitment: “No hard stops on conversations” eliminates rushed advisor interactions - Radical Transparency: Clients understand exactly what they own and why - Psychological Partnership: Mirror client anxiety levels, provide therapeutic-like relationship - Values-First Client Selection: Serve clients who “care about the same weird shit”

Competitive Advantage: Creates authentic community where clients feel they’ve found “their people,” leading to exceptionally high close rates and retention.

4 Performance Metrics

4.1 Client Acquisition Excellence

Client Competition: Prospects actively compete for access rather than firm competing for clients
Growth Rate: Doubling AUM annually with minimal marketing spend
Client Satisfaction: Therapeutic relationship quality drives referrals and retention

4.2 Operational Sophistication

Automation Excellence: Institutional-grade operational infrastructure and documentation
Process Systematization: Better compliance and process documentation than firms 10x larger
Technology Integration: Sophisticated automation enabling scale without losing personal touch
Knowledge Management: Complete client conversation transcription and analysis

5 Strategic Positioning

5.1 Market Position: Exclusive Ethical Authority

Authoritative Voice: When ECIC speaks on ethical investing, people listen
Selective Access: Limited capacity creates desirability and urgency
Values Leadership: Drive industry conversation on authentic ethical investing
Community Building: Foster ecosystem of aligned investors and professionals

5.2 Service Differentiation

Investment Philosophy: “Ethics Reveal Quality” - moral screening improves investment outcomes
Client Experience: Mirror therapy model with unlimited time and genuine care
Portfolio Construction: Three primitive strategies (Growth/Income/Diversification) allowing precise customization
Ongoing Relationship: Lifelong partnership model with evolving ethical framework

6 Competitive Landscape Analysis

6.1 Traditional ESG Competitors

Weakness: Rely on flawed third-party ratings, greenwashing concerns, wealth minimums ECIC Advantage: Proprietary research, authentic ethical alignment, accessible to all investors

6.2 Fee-Based Advisors

Weakness: Prioritize wealthy clients, limited time per relationship, generic investment strategies ECIC Advantage: Equal treatment regardless of assets, unlimited time commitment, values-first approach

6.3 Robo-Advisors

Weakness: Algorithmic relationship, limited ethical sophistication, one-size-fits-all approach ECIC Advantage: Deep human connection, sophisticated ethical analysis, psychological partnership

7 Strategic Initiatives

7.1 Current Focus: Scaling Operations (2024-2025)

Automation Without Dehumanization: Systematize administrative tasks while preserving personal touch
Knowledge Systematization: Document all processes to enable delegation and training
Compliance Excellence: Proactive regulatory management supporting continued growth
Client Experience Optimization: Eliminate friction while maintaining relationship depth

7.2 Medium-Term Goals: Market Leadership (2025-2027)

Industry Recognition: Establish ECIC as authoritative voice in ethical investing
Professional Network: Build relationships with aligned advisors and professionals
Thought Leadership: Shape industry standards for authentic ethical investing
Community Expansion: Grow ecosystem of values-aligned investors and advocates

7.3 Long-Term Vision: Institutional Impact (2027+)

Market Influence: Drive institutional adoption of authentic ethical screening
Industry Standards: Establish new benchmarks for values-aligned finance
Educational Impact: Train next generation of ethical investment professionals
Systemic Change: Demonstrate that ethics and performance are complementary

8 Success Metrics

8.1 Quantitative Measures

AUM Growth: Target $10MM by 2025, $25MM by 2027
Operational Efficiency: 50% reduction in manual administrative work
Market Recognition: Industry awards and speaking opportunities

8.2 Qualitative Indicators

Client Advocacy: Unprompted referrals and testimonials
Industry Influence: Competitors adopting similar approaches
Team Development: Successful delegation and junior advisor training
Community Impact: Clients actively engaged in ethical framework evolution

9 Risk Management

9.1 Strategic Risks

Key Person Dependency: Over-reliance on founder for core functions
Market Volatility: Concentrated ethical portfolios may underperform in certain cycles
Regulatory Changes: New rules affecting ethical investing approaches
Competition: Larger firms copying methodology with greater resources

9.2 Mitigation Strategies

Process Systematization: Document all methodologies for knowledge transfer
Portfolio Diversification: Three-strategy approach manages different risk profiles
Proactive Compliance: Stay ahead of regulatory requirements and industry standards
Authentic Differentiation: Build moats that can’t be easily replicated

This strategic framework guides all operational decisions and ensures ECIC maintains its competitive advantages while scaling to serve more values-aligned investors.