BlackettwalkerltdPWP IFA MAr13 FU ethical
FINANCE UPDATES
MARCH 2013
Ethical investing This guide introduces the idea of ethical investing, in which human and environmental considerations influence investment decisions.
How would you decide who to bank with, which mortgage or pension provider to choose, or where to invest your money? Would you consider ethical questions when shopping for a financial product, in the same way that you might with Fairtrade products such as tea, coffee or bananas? Would you think twice about choosing a particular product or provider if your money was being invested in a certain industry or business?
products, including - but not limited to the following:
Ethical investing is about applying human and environmental considerations to decisions that you make about saving and investing your money. An ethical investment is one that places as much, if not more, importance on the way funds are used and invested as it does on the cost of or potential returns from the investment.
If you have a credit card, it is likely that your primary concerns when choosing that card were around whether there was an initial 0 per cent interest period on purchases or balance transfers, and what the typical annual percentage rate (APR) of interest would be.
Making ethical investment decisions Ethical considerations can be applied when you choose a range of financial Gosforth Park Avenue, Newcastle upon Tyne Tyne & Wear NE12 8EG 0191 256 9600 [email protected]
t bank accounts t credit cards t insurance policies
Investment UPDATE
Similarly, the decision to open the ISA you chose was probably based on one or more of the following factors: t how much you were looking to invest
t mortgages and bank loans
t your attitude to risk, and whether you wanted a cash ISA or stocks and shares ISA
t individual savings accounts (ISAs)
t how long you wanted to invest for
t investments (funds and/or individual shares)
t whether this ISA was your first or you were transferring funds in from an existing account
t pension funds
Likewise, if you’ve recently purchased an insurance policy, the answer to the question “how much is my premium going to be?” was probably your major motivation for choosing the product and provider that you selected.
t how readily accessible you wanted your funds to be. An ethical investor is concerned with more than the financial cost of, or return provided by, a financial product or investment. They look at how their money is, in turn, invested by their bank or investment fund, or by their pension or insurance provider. They consider the other companies and industries that are being lent to or invested in.
www.blackett-walker.co.uk
Ethical investing Avoiding certain industries and companies Investments in industries that could be considered to have a harmful human or environmental impact are excluded by ethical investors in favour of those that are considered to be ‘green’, more socio-environmentally ‘positive’ or are more committed to demonstrating corporate social responsibility (CSR). Ethical funds undertake careful ‘screening out’ exercises to avoid making investments in businesses that are engaged in activities that could be considered morally-questionable or ‘negative’. Industries that are typically screened out by ethical investors are: t arms and munitions t tobacco t alcohol t gambling t nuclear power Investors in the fashion industry, for example, might ask whether the label concerned uses fur in its collections. Before investing in a food production company, an ethical investor might ask how well they rate on animal welfare.
Community-owned businesses and projects - or ‘co-ops’ - are increasingly popular with those who want to invest ethically. Ethical investors also commonly seek to use their influence as shareholders to bring about positive change where they find morally-questionable practices.
Sustainable investment: in figures Global value of assets under management
£8.6 trillion
Percentage of all assets under management
21.8%
National Ethical Investment Week (NEIW) 2013 NEIW is designed to raise awareness of, and interest in, green and ethical investment and finance options. It has been announced that NEIW 2013 will take place during 13-19 October 2013. A number of events and awareness-raising campaigns will be held across the country during this week. These include targeted social media activity via Twitter and relevant blogs as well as promotion via local press. NEIW is run by the UK Sustainable Investment and Finance Association (UKSIF), which promotes responsible investment and other forms of finance that support sustainable economic development, enhance quality of life and safeguard the environment.
Favouring certain businesses and practices However, they also go a step further, by actively ‘screening in’ and investing in companies and projects where the express intention is to enhance the quality of human life or to have a positive environmental impact, for example, renewable energy projects or sustainable agriculture. They might also look to invest in businesses that can demonstrate:
Ethical investment: in the news In August last year, at the height of the phone-hacking scandal, the Church of England announced that it had sold its shares in News Corporation after saying that the allegations had raised ‘serious concerns’ about its holding in the company. The Church sold £1.9 million worth of shares, which amounted to 0.005 per cent of News Corporation’s stock.
t a low-carbon footprint and efforts to minimise their impact on the environment t a commitment to treating staff fairly and safeguarding human rights
We can help you plan, manage and review your investments. Talk to us to find out more.
t equal opportunities for staff irrespective of gender, race, religion, age or disability.
Important information The way in which tax charges (or tax relief, as appropriate) are applied depends upon individual circumstances and may be subject to change in the future.This document is solely for information purposes and nothing in this document is intended to constitute advice or a recommendation. You should not make any investment decisions based upon its content. The value of investments can fall as well as rise and you may not get back the full amount you originally invested. Whilst considerable care has been taken to ensure that the information contained within this document is accurate and up-to-date, no warranty is given as to the accuracy or completeness of any information. E & OE.
Blackett Walker Ltd is Authorised & Regulated by the Financial Services Authority. Registered in England Number 2895559.
MARCH 2013
Ethical investing This guide introduces the idea of ethical investing, in which human and environmental considerations influence investment decisions.
How would you decide who to bank with, which mortgage or pension provider to choose, or where to invest your money? Would you consider ethical questions when shopping for a financial product, in the same way that you might with Fairtrade products such as tea, coffee or bananas? Would you think twice about choosing a particular product or provider if your money was being invested in a certain industry or business?
products, including - but not limited to the following:
Ethical investing is about applying human and environmental considerations to decisions that you make about saving and investing your money. An ethical investment is one that places as much, if not more, importance on the way funds are used and invested as it does on the cost of or potential returns from the investment.
If you have a credit card, it is likely that your primary concerns when choosing that card were around whether there was an initial 0 per cent interest period on purchases or balance transfers, and what the typical annual percentage rate (APR) of interest would be.
Making ethical investment decisions Ethical considerations can be applied when you choose a range of financial Gosforth Park Avenue, Newcastle upon Tyne Tyne & Wear NE12 8EG 0191 256 9600 [email protected]
t bank accounts t credit cards t insurance policies
Investment UPDATE
Similarly, the decision to open the ISA you chose was probably based on one or more of the following factors: t how much you were looking to invest
t mortgages and bank loans
t your attitude to risk, and whether you wanted a cash ISA or stocks and shares ISA
t individual savings accounts (ISAs)
t how long you wanted to invest for
t investments (funds and/or individual shares)
t whether this ISA was your first or you were transferring funds in from an existing account
t pension funds
Likewise, if you’ve recently purchased an insurance policy, the answer to the question “how much is my premium going to be?” was probably your major motivation for choosing the product and provider that you selected.
t how readily accessible you wanted your funds to be. An ethical investor is concerned with more than the financial cost of, or return provided by, a financial product or investment. They look at how their money is, in turn, invested by their bank or investment fund, or by their pension or insurance provider. They consider the other companies and industries that are being lent to or invested in.
www.blackett-walker.co.uk
Ethical investing Avoiding certain industries and companies Investments in industries that could be considered to have a harmful human or environmental impact are excluded by ethical investors in favour of those that are considered to be ‘green’, more socio-environmentally ‘positive’ or are more committed to demonstrating corporate social responsibility (CSR). Ethical funds undertake careful ‘screening out’ exercises to avoid making investments in businesses that are engaged in activities that could be considered morally-questionable or ‘negative’. Industries that are typically screened out by ethical investors are: t arms and munitions t tobacco t alcohol t gambling t nuclear power Investors in the fashion industry, for example, might ask whether the label concerned uses fur in its collections. Before investing in a food production company, an ethical investor might ask how well they rate on animal welfare.
Community-owned businesses and projects - or ‘co-ops’ - are increasingly popular with those who want to invest ethically. Ethical investors also commonly seek to use their influence as shareholders to bring about positive change where they find morally-questionable practices.
Sustainable investment: in figures Global value of assets under management
£8.6 trillion
Percentage of all assets under management
21.8%
National Ethical Investment Week (NEIW) 2013 NEIW is designed to raise awareness of, and interest in, green and ethical investment and finance options. It has been announced that NEIW 2013 will take place during 13-19 October 2013. A number of events and awareness-raising campaigns will be held across the country during this week. These include targeted social media activity via Twitter and relevant blogs as well as promotion via local press. NEIW is run by the UK Sustainable Investment and Finance Association (UKSIF), which promotes responsible investment and other forms of finance that support sustainable economic development, enhance quality of life and safeguard the environment.
Favouring certain businesses and practices However, they also go a step further, by actively ‘screening in’ and investing in companies and projects where the express intention is to enhance the quality of human life or to have a positive environmental impact, for example, renewable energy projects or sustainable agriculture. They might also look to invest in businesses that can demonstrate:
Ethical investment: in the news In August last year, at the height of the phone-hacking scandal, the Church of England announced that it had sold its shares in News Corporation after saying that the allegations had raised ‘serious concerns’ about its holding in the company. The Church sold £1.9 million worth of shares, which amounted to 0.005 per cent of News Corporation’s stock.
t a low-carbon footprint and efforts to minimise their impact on the environment t a commitment to treating staff fairly and safeguarding human rights
We can help you plan, manage and review your investments. Talk to us to find out more.
t equal opportunities for staff irrespective of gender, race, religion, age or disability.
Important information The way in which tax charges (or tax relief, as appropriate) are applied depends upon individual circumstances and may be subject to change in the future.This document is solely for information purposes and nothing in this document is intended to constitute advice or a recommendation. You should not make any investment decisions based upon its content. The value of investments can fall as well as rise and you may not get back the full amount you originally invested. Whilst considerable care has been taken to ensure that the information contained within this document is accurate and up-to-date, no warranty is given as to the accuracy or completeness of any information. E & OE.
Blackett Walker Ltd is Authorised & Regulated by the Financial Services Authority. Registered in England Number 2895559.
