Ethical investment – or Socially Responsible Investment (SRI) – has moved from the sidelines to become a credible option for forward-thinking investors. In the past, when making the decision to invest ethically, many investors had to decide between profits and principles. Ethical screening was conducted on negative, rather than positive, criteria, with a focus on filtering out “bad” companies rather than seeking those that were making a positive contribution to society.
Today, ethical investment strategies have evolved. An effective SRI approach is designed not just to screen out undesirable companies, but also to pinpoint desirable ones. Positive social themes can provide valuable stimulus for product innovation; meanwhile, asking challenging questions provides scope for fund managers to identify potential opportunities at an early stage in their development.
To meet the growth in demand from both individuals and advice professionals alike, there is a much broader range of investment companies managing SRI funds today. We are finding our clients are much more open about considering SRI within their long-term pension and ISAs investments.
As well as creating bespoke ethical investment portfolios for those clients who have specific religious or ethical requirements, at Chilvester we have also developed a range of three SRI strategies combining selected funds from top investment houses to create our Cautious, Balanced and Aggressive ethical portfolios.
If you would like more information about our investment strategies, be they ethical or traditional, please do contact us.
Chartered Financial Planner, Sam Binstead chairs the Investment Committee at Chilvester Financial.
The value of a fund, and the income derived from it, can decrease as well as increase and you may not necessarily get back the amount you originally invested.