Increasingly we are finding clients taking more interest in where their money is invested and the actions and philosophies of the companies which make up their investment portfolios; a passive market index-based investment approach may not always be suitable for those with strong ethical investment views.
Socially Responsible Investing, also known as Environmental, Social and Governance (ESG) investing, is a subjective concept and various strategies are available. We think the best way for investors to invest according to their values is to exclude companies that cannot meet clear, independent ESG standards. That is why our Socially Responsible portfolios are designed to:
- Help investors remove exposure to controversial/contentious activities;
- Provide a rules-based, transparent exclusions methodology;
- Exclude companies if they are involved with controversial business activities or conduct.
We focus on high levels of negative screening (and avoidance) and our prudent selection criteria enables us to maintain a globally diversified investment approach. We believe that we provide diversified socially responsible portfolios at a very reasonable cost but, as expected, those costs are higher than with our passive portfolios.
However you choose to invest, do always bear in mind that all investments carry a degree of risk and the value of them may go down as well as up and you may get back less than you invested. Past performance is not a reliable indicator of future performance.