Frequently asked questions
This all sounds very nice but how do I know you can be trusted anymore than any other financial shark!
We belive that a long term client is far more likely to be profitable for us than if we go chasing one of quick deals. This approach has been the foundation of our business for the last twenty years and it works.
So even if you don't believe our words - then trust our self interest.
Will a company committed to 'being green' suffer from lower growth as a result?
Evidence suggests on the contrary, businesses with a clear and strong commitment to corporate and social responsibility and who adopt sustainable practices will enjoy a more successful future. These companies will benefit from a reduced risk of litigation, less waste (cost) and better public image
Do you really think it will change anything?
Although the financial system and value of investments is huge, an ever increasing proportion of this money is being channelled into investments which take into consideration social and environmental issues. Ethical investment works on the principle of collectively we can bring about change. The growing influence of ethical investors is already bringing about significant changes in the practices of big businesses around the world as they recognise the strength of the green movement.
Isn't it true that ethical investments usually under-perform?
This is one of the myths about ethical investments that generally is untrue. Companies that align themselves to their customers" principles by adopting environmentally and socially aware policies are better placed to achieve sustainable growth and deliver above average long term returns to investors.
If you are comfortable with a general approach to ethical investing then you do not need to sacrifice investment performance to have investments that take account of your ethical concerns. As with any investment, some perform better than others.
What you find with ethically screened funds is that because they exclude some sectors (arms, tobacco, etc) and are more heavily weighted towards others (renewable energy, transport and communication, etc) they will be subject to different business cycles to non screened funds.
Invariably there will be periods of relative over performance as well as relative under performance when compared to their un-screened peers, but generally over the medium to long term the returns will be very similar.
Isn't it true that Ethical funds exclude too many companies, limiting choice and therefore diversification?
No. All funds have to "screen out" some companies as it is impossible for them to invest in every available option. Ethical issues are as good a criteria as any other (geography, sector, etc) for a manager to focus on.
As mentioned above, quite often companies that adopt social and environmental policies are better placed for long term business success.
Aren't ethical investments just for green fanatics?
No. Most personal investors and institutions who invest in ethical funds are not environmentalists.
Due to media interest and government debate, awareness of sustainable and responsible investment issues have been raised in the public eye to such an extent that investing with a set of ethical concerns is now much more likely to be a mainstream choice - and one that is increasingly driven by sound commercial judgement. £9.5 billion can't come from just the environmentalist but this is what is currently invested ethically.
Why should I choose Investing Ethically Ltd as my Financial Adviser?
We are a small group of people who are passionate about ethical investment.
We are one of the few IFA practices in the UK who specialise in ethical investment.
So, if you are interested in this type of investment we are the financial advisers for you!
We also offer a genuinely personal service, where our relationships with our clients are equally, or if not more important, than the amount of money we make.
In addition to this, all our Independent Financial Advisers are well qualified with many years experience between them and we think you"ll find our rates very competitive too.
How can I be sure that a company really is green?
As green consumerism becomes more important, it is more tempting for companies to claim that they are green when they may not be.
Ethical investment funds are supported by dedicated analysts and fund managers who focus on understanding the practices of each company they consider for investment and seek evidence of a long term commitment to sustainable business practices rather than just the corporate sound bite.
Is "ethical" investment an investment fashion statement with a sell by date?
Whilst it is true that different themes occupy the central green space - currently climate change is the focus on the main debate, ethical investment has developed steadily over the last 20 years to become a major consideration for a significant proportion of investors including pension fund trustees. T
his reflects the growing awareness that unsustainable businesses will not prosper long term without significant changes.
