How does it work?
The process is the same as you’d expect from seeing any financial adviser.
We sit with you and discuss your situation, circumstances and objectives. We carry out extensive research and recommend a suitable solution.
How we differ is we help you understand the ethical options available and match your preferences to an equivalent investment which can then be housed within the appropriate ‘wrapper’ (ISA, pension, bond etc.)
What is Ethical Investing?
Ethical investing is the consideration of environmental, social and governance factors alongside financial factors in the investment decision-making process.
Ethical considerations are applied using a variety of different ‘screening’ methods which, can either exclude or include certain businesses or industry sectors, take into account how well a business is run, it’s impact on the environment and compassion towards employees or businesses that are working to create a sustainable, cleaner, fairer world.
Will I lose money?
Like any investment there are no guarantees and you could get back less than the amount initially invested.
That being said, all available investments are fully regulated and many have long term performance track records.
Are the returns as good as non-ethical alternatives?
Yes – and in some cases, better.
This follows a gradual shift towards ethical investing becoming much more mainstream and easily accessible with more and more business available for inclusion thanks to broader screening techniques which take into consideration the good and not just taking out the bad.
Does it cost more?
Unlike organic carrots, ethical investing does not have to cost more.
Many ethical funds are actively managed and so charge fees comparable to other actively managed alternatives.
Continuing development of ethical solutions has lead to ‘enhanced passive’ ethical funds emerging which, have extremely competitive fees making it easy to choose ethical.
Can ethical investing really change the world?
Very much so. Money talks.
By choosing ethical, money flows into funds that in-turn invest in companies by purchasing shares. Shareholders have the right to vote on certain corporate matters such as elections for the board of directors, proposed operational changes and shifts in company aims and goals.
In addition, if the performance of ethical funds is comparable or better than non-ethical alternatives then more money is likely to be invested in them and businesses will want to be included so will need to make necessary changes to avoid being ‘screened out’.