Investing for good is being made easier with ii's Ethical Growth Portfolio of 10 funds, ETFs and trusts.
As Harry and Meghan begin a new year on a quest shared by the rest of the working population – financial independence, whatever the nuances it’s easier done when you have millions to fall back on. The rest of us need help from the stock market.
But whilst Harry and Meghan will continue to champion good causes, investing for good is becoming a greater priority for a growing number of investors.
interactive investor, the UK’s second largest direct to consumer investment platform, has launched an Ethical Growth Portfolio for investors who want a ready-made, balanced, multi asset portfolio run within a socially responsible investing framework.
Ten funds, ETFs and investment trusts make up the Ethical Growth Portfolio, nine from ii’s ethical ACE 30 rated list, with the tenth, Impact Healthcare REIT completing the line up. To view the methodology, view here.
Richard Wilson, Chief Executive Officer, interactive investor, says: “Our Ethical Growth Portfolio builds on several ii initiatives to help investors navigate this growing but complex subject. We are proud to have created a balanced, multi asset, ready-made portfolio using an ethical framework.
“This is another instrument agnostic offering from ii which is resolutely free from any form of commercial bias. In keeping with our other model portfolios and our rated lists, Super 60 and ACE 30, it is not ‘funds centric’ and also includes ETFs and investment trusts.”
Moira O’Neill, Head of Personal Finance, interactive investor says: “Climate change; social equality; avoiding harm; there are an increasing number of ethical issues for many. Using investment as a force for good is compelling for many investors in the quest for financial independence – either by choosing companies that are environmentally or socially focused or by proactively avoiding harm. It’s not easy – one person’s idea of ‘ethical’ might not be the next person’s – but it is worth persevering with.
“In building this multi asset portfolio, we had to look outside of our ethical ACE 30 rated list to find a suitable diversifying asset to help mitigate losses when equities and bonds fall. Step forward Impact Healthcare REIT (LSE:IHR). Whatever your views on property right now, it’s a major asset class which long term, many investors will not want to ignore.
“Whilst we do the hard work, the underlying holdings have to be bought individually. Since we have scrapped our regular investing charge, monthly investors can buy each of the 10 portfolio constituents for free. We review our ready-made portfolios every quarter to make sure that, throughout the ups and downs of markets and the performance of varying fund manager styles, the asset class mix is closely aligned with our benchmark, and we will communicate with our customers if rebalancing is required.”
interactive investor publish an ethical iinvestments long list, which categorises the ethical universe into three ACE investment styles: Avoids, Considers Embraces, and also an ACE 30 Rated list, the UK’s first.
interactive investor Ethical Growth Portfolio
|Name||ii ACE ethical style||Portfolio weighting||Allocation of £20,000|
|Royal London Sustainable Leaders fund||Considers||15%||£3,000|
|BMO Responsible Global Equity fund||Considers||10%||£2,000|
|iShares Global Clean Energy ETF||Embraces||8%||£1,600|
|Fundsmith Sustainable Equity fund||Considers||14%||£2,800|
|Trojan Ethical Income Fund||Avoids||10%||£2,000|
|Impax Environmental Markets (LSE:IEM)||Embraces||8%||£1,600|
|Stewart Investors Global Emerging Markets fund||Considers||15%||£3,000|
|Rathbone Ethical Bond Fund||Considers||10%||£2,000|
|Impact Healthcare REIT (LSE:IHR)||Embraces||5%||£1,000|
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.