Existing clients can use these links to log in to the Infinity dashboard. Not a client? Why not get in touch to find out about our services.
If you have strong political, religious or environmental beliefs, it makes sense to invest in companies which don’t go against your principles. If you think Amazon is the work of Satan because of its reputation for tax avoidance and unfair treatment of its employees then you will probably avoid investing in shares in the company. Similarly, if you spend your spare time campaigning for Greenpeace, you won’t want to be supporting Shell which remains committed to drilling in the Arctic in spite of a targeted campaign by the NGO.
There are two aspects to investing ethically. Negative screening is avoiding companies because you are opposed to their activities and might include businesses which are involved in the arms trade, tobacco, alcohol, fossil fuel production, fracking and so on.
Positive investing, also known as socially responsible investing, is supporting companies who seek both profit and social good. This involves investing in companies actively engaged in practices which you support such as promoting human rights, protecting the environment or supporting sustainable agriculture.
Ethical investing actually has a pretty long history. In the early 1900s religious groups entered the investment game but were opposed to anything involving gambling, alcohol and the manufacture of arms. In the seventies ethical investment entered the public domain as many investors wanted to avoid companies profiting from the Vietnam War. The result was the Pax World Fund which initially attracted just £40,000 in investment and has grown to be worth over £1bn.
One of the difficulties with socially responsible investing is that what constitutes an ethical fund is never black and white. Each individual will have a different definition of what ‘ethical’ means and, similarly, ethical criteria will vary from one fund to the next. In addition, the diversification of large multinational companies often obscures some of their activities. To give an example, a company may not be directly involved in the manufacture of arms but may produce components used in their manufacture.
As well as facing the challenge of defining just what ethical means to them, investors wishing to go the ethical route have historically had to compromise on profit for the sake of principles. This has changed in recent years. Sustainability, climate change and the scarcity of resources have had a major impact on consumer habits since the turn of the century and these issues will continue to influence the decisions of consumers and companies alike. This in turn influences the investment landscape with an increase in the number of ethical funds emerging. There are now around 100 in the UK alone.
Our investment partner, Tilney Bestinvest, takes ethical investing very seriously and invested over £8.6bn in green and socially responsible funds in 2013. TBI also produces an annual report on the topic which includes an analysis of the best performing ethical funds and rates their ethical criteria on a three tiered green scale. Our financial planners would be happy to discuss the issue with you and can even work with you to create a tailor-made investment portfolio to meet your specific requirements. Get in touch to find out more.
This Site and the Content are not directed at or intended for distribution to any person (or entity) who is a citizen or resident of Hong Kong (or located or established in) any other jurisdiction where the use of the Site would be contrary to applicable law or regulation or would subject Infinity Financial Solutions Limited to any registration or licensing requirement in such jurisdiction.
Persons (or entity) who is a citizen or resident of Hong Kong please click on the link below to access our Hong Kong Site.