Ethical investing is rapidly gaining momentum, quadrupling in the last 3 years to approx. $622 billion. The UK and US have a sufficiently deep market to maintain a benchmark for ethical investments, unlike the Australian market which is still in its infancy, with limited choices – currently approximately 40.
In the ethical investment sphere, companies that care about the environment, the treatment of their workers, and have strong social governance, are the ones that are less likely to be affected by changing government regulations or corporate disaster, which could result in a share price decline.
Many investors want a say over where their money is invested, or at least where they don’t want it invested – eg areas such as tobacco, gambling or polluting companies. Ethical investments generally help investors to align their portfolio with their personal values without sacrificing returns. Of course, for many people the return on investments may not just amount to the dollars, but include the resulting environmental benefits and community well-being. Please contact our RDL financial planning team for information on available ethical investments that are right for you.