Ethical Investments & Socially Responsible Investing

Socially Responsible Investing (SRI Investing)

The Chatsworth Practice regularly recommend Socially Responsible Investment companies to clients. Socially Responsible Investment companies are those which consider Social and Environmental good as well as financial return.

Ethical Savings and Investments used to be specialist and expensive, because few wanted to invest in Socially Responsible funds. The small number of Ethical Savings and Investment funds meant it was difficult to find an Ethical Managed fund which also produced good Investment returns. That is no longer the case.

The last decade has seen a significant change to how people view the environment. Demand from Socially Conscious Investors for ethical managed funds has prompted the creation of many Ethical Savings and Investment funds which follow an SRI strategy.

Global environmental policies targeting a carbon neutral position will affect the long term profitability of a number of companies, while improving the prospects for others. Most mainstream investment managers give this consideration when selecting investments. Some mainstream investment managers only invest in Ethical companies with strong Environmental, Social & Governance policies. Demand for Socially Responsible Investing (SRI Investing) is having a positive impact on the world by encouraging large companies to improve their policies.

Environmental, Social & Governance criteria (ESG investments)

ESG is a list of minimum standards which Socially Responsible Investing companies can use to govern their portfolios.  The Chatsworth Practice obtain research into the Environmental, Social & Governance criteria used by  Investment fund managers for maintream investors as well as Socially Conscious Investors  As the world changes toward carbon neutrality, these enviromental factors will only get more important in highlighting future profitable companies.

Environmental criteria consider how a company performs as a steward of nature. Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights.

Types of Ethical Investment Funds

Socially Responsible Investors want to invest in Ethical managed funds principally to promote good, but everyone has their own view on what they would like to invest in.  There are a wide range of Ethical Savings and Investment funds and ethical managed funds available with different ethical policies. Socially Conscious Investing can involve a low cost socially responsible investing etf, or tracker unit trusts as well as higher charging specialist actively managed ethical funds in things like Timber or Clean Energy. The Chatsworth Practice can put together a bespoke portfolio according to your own priorities.

Socially Conscious Investing can be complex due to the opaque nature of how funds operate. Some funds which claim to involve Sustainable or Socially Conscious Investing Companies, have  a weaker ESG screening process than some mainstream Investment funds. In some cases our analysis shows a specialist ethical partners fund management company may be less ethical and significantly more expensive than some mainstream investment houses. The Chatsworth Practice can be your ethical investment money saving expert in some cases!

Socially conscious Investing needs expert financial advice. The Chatsworth Practice has the expertise to ensure funds selected meet a client’s ethical preferences without sacrificing performance or paying unnecessarily high charges.

Best Ethical Investment funds & Socially Responsible funds for you

Socially Conscious Investors often have personal views on what makes ethical investment funds.

For some SRI Investors, Ethical investing is about excluding investments in certain types of companies. They may feel uncomfortable investing in  tobacco, weaponry, animal testing or companies using child labour.  Some Ethical managed funds cater to these requirements.

Some Socially Conscious Investors have specific areas in which they would like to invest such as renewable energy, timber or water. Certain Ethical Investment funds cater to these requirements.

Some SRI Investors are less prescriptive, but want Socially Responsible Investment companies to use their shareholding in companies to promote ethical ideas and processes. Ethical Investment Fund managers on investors behalf are in many cases significant shareholders in companies. This gives them the power to influence corporate practices and policies. Socially Responsible Investment companies use this influence for environmental and social good.

Whatever your preferences The Chatsworth Practice can provide the Independent Financial Advice on Ethical Savings & Investments you need.

Advice on Ethical Savings & Investments

Ethical Investment funds and Socially Responsible Investing Companies can be held in a range of different Savings & Investments. A range of Ethical Managed funds can be used to create a tailor made Socially Responsible Investment portfolio for SRI Investing. This can be held in an Individual Savings Account (ISA), Pension, Collective Investment Account or Investment Bond.

Because we treat clients as individuals we can create a bespoke investment portfolio tailored to your own ethical investment preferences. We can provide advice on the most suitable ethical funds for your needs and the best tax wrappers in which to place them. Please feel free to contact us today on 01202233297 to arrange an initial consultation.