What is Ethical Investment?
Ethical Investment is known by many names, and takes many different forms. For Ethical Advisers Funds Management, we invest to ensure that the investments we purchase do no significant harm to the environment or society, and instead we actively seek investments which are having a positive environmental or social impact.
There are many different forms of ethical or responsible investing, including ESG Integration, Values-Based Investment, Impact Investing, Negative Screening and Sustainable Investing. Ethical Advisers Funds Management use a combination of these different approaches to build diversified and ethical portfolios.
Transparency of investments
The portfolios are designed for investors who care about the environment, who want transparency of their investments, and who want to know that their money is having a positive impact on the environment or society.
Ethical investors realise the double-edged power that their investments can have to change companies for the better. This is done through both actively investing in companies they believe in, as well as withdrawing support from companies involved in harmful and unsustainable practices.
As well as investing ethically, we ‘walk the talk’ by charging a fair and transparent fee, having a publicly available and clear ethical charter, as well as providing full disclosure of the actual companies you will be investing in.
Investors are demanding Ethical Investment
Recent research into consumer attitudes by the Responsible Investment Association of Australasia (RIAA) showed that an overwhelming majority of Australian investors (92%) expect their superannuation or other investments to be invested responsibly and ethically.
Australian investors are no longer just shopping around for ethical investments; they are expecting ethical behaviour as a standard. More than half of all Australians already expect that their advisers are considering societal and environmental values before making decisions about their accounts.
Recent legislation (FASEA) also demands that investors’ social and ethical concerns are taken into consideration when making investment choices (see FASEA Standards 5 and 6).
Link to survey: https://responsibleinvestment.org/consumer-polling/
There is no need to choose between good values and good returns. Research by the Responsible Investment Association of Australasia (RIAA) show that ethical investments, on average, provide returns in-line with, or better than, mainstream funds over most time frames:
Link to full report: https://responsibleinvestment.org/resources/benchmark-report/