The concept of ethical or sustainable investment is not a new one. In essence, investments are chosen surrounding identified key values, and traditionally avoid companies which operate in sectors such as tobacco, arms or gambling.
Today, ethical investment is an increasingly accessible and attractive option for investors looking to procure ‘good money’ with green and sustainable investments and funds on offer. Sustainable funds tend to be evaluated based on the company’s corporate governance, the industry it operates in and environmental factors.
Sir David Attenborough’s recent BBC series drew our attention to the sheer scale of marine waste and the pervasive nature of microplastics which are consumed by sea creatures. This seems to have stirred a renewed interest in the environment and what we can do as individuals to help. How does this relate to your financial strategy? A general consideration of ethical and sustainable investment is a good place to start.
In terms of implementing a more ethical and sustainable strategy, just as it is important to consider discretionary versus advisory management and active versus passive funds, so too it may be worth interweaving ethical and sustainable funds into a balanced portfolio. When researching ethical funds, it must be remembered that performance does not have to be sacrificed for the sake of principles. Just as with any investment choice, funds with a solid track record are available, which our experienced advisers at The Fry Group would be happy to discuss with you. Please contact us if you would like further advice.