That’s why we are delighted to announce the addition of an ethically focused fund that investors can access across all x of our Model Portfolios.
"More than ever, investors are looking for investments that inspire them and considering the impact of their investment on wider society and/or how a company treats their people."
"Many people are uncomfortable with the idea of profiting from investing their money in ‘sin stocks’, organisations that are associated with stigmatized activities such as alcohol, tobacco, gambling and guns.
It’s not just about what a company produces though, it’s also important to consider their approach to matters such as the environment, social responsibility and how they treat their staff.quot;
More than ever, people are looking for investments that inspire them. Other key considerations including the impact of their investment on wider society and how a company treats their people are feature are becoming more common too
With many nations focused on improving their environmental practices, many commentators believe that the performance of ethical and environmental funds will continue to strengthen as the world develops alternative energy solutions, which is great news for investors.
The idea of ethical investing is far from new, in fact it can be traced back to 18th century religious groups, before gaining traction in the last century. However, in recent years there has been an increased focus on this approach to investing that has seen socially conscious funds account for around £20 billion of assets in the UK; an increase of over £4 billion in the last ten years.
Yet this remains a largely under-served market in the international arena.
Traditionally, ‘ethical’ investing was often associated with green schemes and many investors believed that such funds provided lower returns. This is simply not the case, as Ramsay explains;
“When picking stocks to build ethical funds, it’s possible to be mindful of the environmental and social impact a company has as well as its potential to deliver strong returns.”
Investing with confidence in something that is still relatively unknown can be quite daunting. However, GWM's team of UK trained, internationally experienced Financial Planners are on hand to answer any questions you might have.