ethical investments

springer712

Given what's happened over the last few months what are people's views on ethical investing?
Banks like the Co Op and Triodos seem to offer poor interest rates at the best of times. And ethical unit trusts seem to have a fair degree of risk attached as its such a young market.
If you've a positive view on the matter can you suggest how best to invest.

dunstonh

Given what's happened over the last few months what are people's views on ethical investing?

People's views shouldnt have changed.

And ethical unit trusts seem to have a fair degree of risk attached as its such a young market.

They typically have a little more risk than the generic sector they follow due to the limited areas they can invest in.

If you've a positive view on the matter can you suggest how best to invest.

You have to decide on what your ethics are as there is no one standard.

gozomark

ethics are in the eye of the beholder...

do you consider charging interest ethical ?
how about alcohol or tobacco ?

springer712

i'm a dark green investor, with a strong emphasis on renewables and sustainability.
my i.f.a. described my stance as "bonkers".
who's right?

gozomark

you are doing it for your beliefs, he/she is presumably saying you are bonkers because you are limiting the investments you can make - you can both be right (or wrong), as they are completely different matters

lets say your IFA could guarantee, say, tobacco stocks would double over the next year. He is right to recommend his clients buy them. You are right, based on your beliefs, not to.

personally I'd change IFA as he's that condescending about your beliefs

tradetime

Not a suggestion as such, since I am not constrained by such considerations I haven't really looked at these sort of investments, however I saw your thread last night, and came across this today during some general reading, don't know if it fits your requirements.

springer712

i've been keeping an eye on the general trend of 'socially responsible' investments over the last 12 months or so and it hasn't made for great reading. But then neither has the stock market generally.
My feeling is that one doesn't invest in this specialised market to make a quick buck. It's much more about slow, long-term growth.

gozomark

springer712 wrote: »

My feeling is that one doesn't invest in this specialised market to make a quick buck. It's much more about slow, long-term growth.

I don't see why that should be true any more for this area than for the market in general. If anything these stocks are likely to be a bit more volatile than the market in general, given they are more susceptable to politics than most, and a basket of these stocks won't provide the same diversification as the overall market

Blah99

gozomark wrote: »

personally I'd change IFA as he's that condescending about your beliefs

I'd keep that IFA because he's got enough of a clue to challenge your beliefs. Have whatever beliefs you want, but investment is about making and growing your money. Disregarding companies, sectors and asset classes because you believe they are "unethical" is madness, and is only a detriment to yourself.

Hungerdunger

Blah99 wrote: »

Disregarding companies, sectors and asset classes because you believe they are "unethical" is madness, and is only a detriment to yourself.

So if I could convince you that investing in a new brothel I was about to open would provide you with better returns than you could get anywhere else, can I assume you wouldn't have any qualms about this?

springer712

Quite. Ethical investing is about investing with a conscience, not just making money per se.
Given the state of the world as it stands at the moment - geopolitically, climatically, financially - an overhaul of investment attitude is long overdue.
Woolly, liberal nonsense? Or just plain common sense?