Socially Responsible Investment Portfolio

Socially Responsible investing is an umbrella term to describe an investment process which takes environmental, social, governance or ethical considerations into account when making an investment decision.

Have you ever wondered what companies your superannuation or investment portfolio is actually invested in?  Everyone has their own set of ethics, values and opinions. We work to implement an investment portfolio depending on what issues and causes you personally care about using positive and negative screened investment choices.

Negative Screening – Ensures the companies you are invested in are not engaged in practices that you don’t support; such as tobacco companies, uranium or coal mining, the exploitation of people or old growth forest logging.

Positive Screening – Actively support causes, companies and industries you believe in. These causes can include renewable energy, climate change minimisation, medical innovation, technology breakthroughs, efficient transport and more.

Can I make money?

The most common misconception of the various responsible investment approaches, is that investors will be sacrificing returns for investing more responsibly. As you can see in the table below,socially responsible investing has consistently outperformed both the index and sector average up to June 2012 in all but one category, across time periods of 1, 3, 5 & 10 years. Only in multi-sector, growth managed funds did the average responsible investment managed-fund, on a review of 1 year performance, perform slightly under the mainstream average (returns of 12.5% vs 13.8%).

Socially Responsible Returns

Source: Responsible Investment Association of Australasia (2013). Responsible Investment Benchmark Report, page 5.

Ethical Investment - Busting the Myth

Ethical Investment - Why It Works

Source: Video's have been provided by Australian Ethical Investment ltd.