Faith, ESG, Ethical, Sustainable – it’s a confusing world!
Investing ethically can be extremely complicated for clients to appreciate. What is considered ethical or sustainable to one person might not be to another. Understanding the impact of ESG can be even more challenging and even the fund managers have different approaches to the same theme.
There is significant disparity between how fund managers approach this subject, that’s why taking professional and impartial advice (not solely from the fund manager) is crucial.
Faith concerns needn’t be a worry
Generation Charity Consultancy recently spoke to a church charity which had £7m invested in a fund launched over 10 years ago, specifically to follow the ethos of their faith.
However, since launch the fund had grown into a large multi-asset portfolio with over 33% invested through other manager funds.
The Trustees however didn’t appreciate that the external funds being used were not being managed with regards to their faith and ethical restrictions. In fact it was invested in Stocks that were specifically ‘excluded’ from their Statement of Investment Principles.
The charity moved to a bespoke Discretionary Fund Manager* which followed the charities investment wishes to the letter.
Only deep analytic research can identify the underlying assets.
Our service ensures all mandates remain aligned to the charity’s requirements around faith, ethics or ESG.
* click here for further information on our Central Investment Proposition
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