Can you really do well by doing good?

Investments

Can you really do well by doing good?

We are finding that increasing numbers of clients want more from their investments than purely good financial returns. There is a growing feeling among many investors that they want their money to be invested to take into account such issues as climate change and the future of the environment, the impact of businesses on society generally and the way that companies are led and governed, as well as their treatment of employees.

This concern for wider objectives is spreading rapidly into professional and institutional investing. Responsible investing and ESG (Environmental, Social and Governance) investing has accelerated recently and is now thought to be worth over $32tn, according to Gillian Tett of the Financial Times (FT 17.2.20).

But can you really do well by doing good? Commentators argue that companies can reduce the risks they face by avoiding reputational damage from pollution and other environmental or social disasters – remember the BP oil spill. Good governance makes for sound business decision-making and climate change and other environmental concerns have created valuable business opportunities.

At Helm Godfrey, we believe that investing in responsible investment funds aiming to have a positive impact on society is more practical than buying funds that try to achieve ethical purity by excluding all problematic activities – a strategy that can increase risk.

In addition to our current risk rated portfolios, we are adding a parallel range of risk-rated portfolios with a tilt towards responsible investing. If you wish to consider this approach, we will aim to deliver responsible investment without compromising your financial objectives.

The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investing in shares should be regarded as a long-term investment and should fit in with your overall attitude to risk and financial circumstances.

 

 

 

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The information in this article does not constitute advice and should be used for informational purposes only. This content has been provided to Helm Godfrey by Taxbriefs.