Socially responsible investing 'still a popular choice'

Investing their private wealth into socially responsible companies or initiatives is still a popular choice among Britons, despite the ongoing recession.

This is according to Irish Independent writer John Cradden, who states that the economic crisis has instigated a period of change when it comes to wealth management.

He added that there are a plethora of alternative investment options for those who are concerned about the behaviour of companies in recent times.

Socially responsible investing is an area that is growing significantly, Mr Cradden furthers, with such fund managers tending to avoid industries involved in alcohol, tobacco, gambling, weapons and excessive pollution.

Speaking to the newspaper, Ray McNichols from Ethical Financial commented: ’Ethical investments are all about the environment and sustainability. They’re not in opposition to each other. Looking after the environment is the ethical approach.’

Meanwhile, according to market strategist at City Index Joshua Raymond, who was speaking last month, recent positive activity in the equities market has not stopped many professionals looking for safer investment options.

A recent report Responsible Investment and Wealth Management: Opportunities for the future, written by EIRIS and published in association with wealth management newswire WealthBriefing and Kleinwort Benson, investigated high net worth (HNW) individuals’ perceptions of responsible investment (RI) and its implementation across the wealth management industry.

The report concluded that 90 per cent of wealth managers responding to the survey said that their RI portfolios have performed the same or better than their other portfolios. Additionally it found that HNW individuals are now more aware than ever of social, environmental and governance issues and how they might relate to their investments.

Guy McGlashan, head of private wealth management services at Kleinwort Benson, commented: ’It is our job as wealth management professionals to be more proactive in the education of both private clients and charities in terms of RI capabilities.

’The financial landscape has changed immensely since the demise of Lehman and we have a responsibility as wealth managers to understand not only a client’s investment outlook but also their philanthropic drivers. We believe wealth management tools will evolve as RI takes on a significantly greater role in mitigating risk and delivering investment goals.’
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