Ethical Investing

LGillanders

Hi All,

I have a new client who is very keen to invest ethically, they espeically want to avoid; tobacco products, armaments, support human rights and equal opportunities. She also has a very low risk score and is investing on behalf of her daughter as her deputy.

Does anyone have any ethical funds they have used that perhaps fit this criteria to point me in a direction please?

Thanks in advance!

arongunningham

Per HL:

The term 'ethical' is often used as a catch-all to describe funds managed with social, environmental, or other responsible criteria in mind.

But there are lots of different ways you could profit from your principles. The main approaches are:

• Ethical funds – These usually avoid companies that do harm to society like weapons manufacturers and tobacco companies. We call this negative screening.
• Sustainable and impact funds – These funds invest in companies that have a positive effect on the world, which is known as positive screening. It could mean they make their products from recyclable materials, or they provide clean energy. Impact funds try to measure the positive impact their investments have on the world.
• ESG integrated funds – Managers of ESG integrated funds consider environmental, social and governance factors as part of their wider research.
• Passive funds – Ethical trackers follow the performance of an index but filter out certain industries, like oil & gas and munitions.
• Shares – If you can’t find a fund that meets your ethical needs, you could consider investing in a selection of individual company shares.

In terms of suggestions, Kames tend to have highly regarded ethical funds.

DanAtkinsonUK

Have a look at what we are doing in this space. We also offer a DFM service to other advisers. Aron's points are spot on. Is it about avoiding evil or actively doing good?

www.eqinvestors.co.uk/dfm

LGillanders

Thanks both, I personally get the impression that this client has chosen Ethical because they want to be seen to be actively doing good.

I shall check out both points.

SimplyParaplanner

It might be worth looking at someone like Parmenion.

They offer 4 different versions of their portfolios depending on how ethical the Clients views are and then 10 different ATRs so 40 portfolios. Just as an example if you google Parmenion Ethical Portfolio Selector you will see there is a link to a pdf that the Client reviews and selects.

MikeM

I'm probably a little late to help you on this occassion but you may find all you are looking for on https://www.fundecomarket.co.uk/