5 Considerations for Socially Responsible Investing

By Marc Westlake

Published on: July 12, 2020

ESG / Ethical Investing

You’ve done your research. You’ve decided that you definitely want your investment portfolio to reflect your values and are searching for the right Socially Responsible Investing (SRI) solution for you. The research has also clearly demonstrated that well-structured SRI portfolios typically perform at least on a par with other portfolio approaches.

At Everlake, we offer Irish investors a choice of portfolios to meet their investment preferences, from traditional investment portfolios through to our ethical filtered portfolio. Any of these equity portfolios can also be combined with our Sustainable Fixed Interest Portfolio to create an appropriate trade-off between risk and expected return, within the constraints of a socially responsible and ethical investment philosophy. Read more about our Tax Efficient, Sustainable Investing Portfolios.

Some people are very specific and prescriptive about what they do and don’t want, whereas others are not. To help you, we’ve outlined five issues for you to consider that will help you access a portfolio that meets your specific needs and is aligned with your values,

  • Your attitude to risk and investment aims: These are likely to be a result of your personal situation including – for example; number of dependents. This will help to shape your portfolio.
  • Your personal motivations will determine the most suitable approach for you: For some investors, SRI is all about making a difference, for others the primary motivation is making money. What are your motivations?
  • Your views can change over time: This may happen as a result of a personal experience or some external factors. It’s important that your investment solution is capable of embracing and adjusting to these changes.
  • Your depth of interest: Some investors are very well informed and ask for lots of information on a particular subject. Others may simply want to know an investment is managed in a green or ethical way. How involved do you want to be?
  • Your interest in specific issues: Some investors are primarily interested in environmental issues, while others wish to focus on social issues. Some may wish to focus on particular areas such as food or water supply. Do you have specific areas of interest that you want reflected in your investment portfolio?

These are some of the issues to consider when thinking about SRI.  We’ve only covered the tip of the iceberg here; nothing will beat sitting down with someone who is fully versed in this space. We are fortunate at Everlake to have deep experience and expertise in helping people to invest in line with their own preferences and convictions.

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