Ethical investments
This style of investing has become much more widespread in recent years as investors have become more sophisticated in their requirements. There are three basic approaches adopted by fund managers and you will find that funds will now very often call themselves 'Sustainable Future Funds' rather than 'Ethical'. This allows the fund manager a wider scope and this can help create a wider investment parameter to actively seek investment returns.
Support, Avoid or Engage?
Support strategies will include buying into companies that sell positive products, such as renewable energy, educational materials and safety products to name a few. Funds can also favour companies with positive policies, such as good equal opportunities, supply chain management, community involvement and charitable giving.
Avoid strategies will screen companies prior to investing and avoid areas such as Tobacco, Alcohol, Armaments and Pharmaceuticals (promoting animal testing) etc. These tend to be favoured by investors who have a strong personal feeling towards certain types of business.
Engagement strategies have a more open architecture, as the fund invests in companies with a view to using shareholder rights to encourage more responsible business standards. Engagement is often used alongside an avoidance investing strategy, as certain industries cannot be changed irrespective of investor sentiment.
Engagement fund managers have a clear guideline as to how they work towards their engagement goals. This is borne out of a risk matrix, which positions the prospective company based on its product sustainability and management quality, which creates a grading system such as a credit score might work.
Aspen fully subscribe to membership of The Ethical Investment Association, as we believe that it is important to fully understand the moral values of investors.
We realise that investors do not always hold moral views, but the importance of this sector for future investment portfolios cannot be underestimated.
We also subscribe to the UK Social Investment Forum, which provides Ethical Screening and Socially Responsible Investment Research and Analysis tools to guide our advice when working with Avoidance strategies.
As part of our commitment to the environment, we commission our brochures and paper on Forestry Certified recycled paper, which is manufactured without using Chlorine
This style of investing has become much more widespread in recent years as investors have become more sophisticated in their requirements. There are three basic approaches adopted by fund managers and you will find that funds will now very often call themselves 'Sustainable Future Funds' rather than 'Ethical'. This allows the fund manager a wider scope and this can help create a wider investment parameter to actively seek investment returns.
Support, Avoid or Engage?
Support strategies will include buying into companies that sell positive products, such as renewable energy, educational materials and safety products to name a few. Funds can also favour companies with positive policies, such as good equal opportunities, supply chain management, community involvement and charitable giving.
Avoid strategies will screen companies prior to investing and avoid areas such as Tobacco, Alcohol, Armaments and Pharmaceuticals (promoting animal testing) etc. These tend to be favoured by investors who have a strong personal feeling towards certain types of business.
Engagement strategies have a more open architecture, as the fund invests in companies with a view to using shareholder rights to encourage more responsible business standards. Engagement is often used alongside an avoidance investing strategy, as certain industries cannot be changed irrespective of investor sentiment.
Engagement fund managers have a clear guideline as to how they work towards their engagement goals. This is borne out of a risk matrix, which positions the prospective company based on its product sustainability and management quality, which creates a grading system such as a credit score might work.
Aspen fully subscribe to membership of The Ethical Investment Association, as we believe that it is important to fully understand the moral values of investors.
We realise that investors do not always hold moral views, but the importance of this sector for future investment portfolios cannot be underestimated.
We also subscribe to the UK Social Investment Forum, which provides Ethical Screening and Socially Responsible Investment Research and Analysis tools to guide our advice when working with Avoidance strategies.
As part of our commitment to the environment, we commission our brochures and paper on Forestry Certified recycled paper, which is manufactured without using Chlorine