Finances under the carpet

It’s no use putting it off any longer. Unfortunately it won’t go away and none of us are invincible.  Our heads need to come out of the sand or from under the carpet and we need to have a good look. What funds are we investing in and what on earth are we supporting? Do you know what it means and what implications it has to our future?  I’m not saying we have a crystal ball but we can provide a clear and honest opinion of where you are at, understand where you want to be and create a path to help you get there, taking into consideration your ethics.

Pensions, ISAs, OEICs, yada, yada, yada

Have you switched off already? We can give your finances the once over and have a rethink, taking the burden away.  Finance and retirement jargon options discombobulate (I love that word) your head. Maybe you think that you don’t even have a say with your finances (especially pensions). This may no longer be the case.  Legislation allows greater flexibility than it did 10 years ago.  Pensions and investments are confusing and often use terminology that we are not all familiar with.  This can scare us away.  Please don’t let it.  You have ethics, you recycle, you want to do good but never realised that there are so many options to make a stand with your money, too. There are a multitude of ethical funds which are committed to and have a deep understanding of ethical issues.  You may think you are already avoiding arms and tobacco companies but haven’t really checked, what about a company’s actions around labour rights and the environment?  We can share our knowledge and help you understand what it all means in plain English.

We understand everybody’s criteria is different

You may be vegan, concerned with climate change, or you want to support social housing. We don’t judge, we listen as it’s your ethics and concerns we want to understand. We can help you use your investments as a way to effect a positive change that matches your beliefs. When we all chip in together with our investments, we can collaborate for change. Fund managers can and do influence shareholders meetings and companies.

I’m sticking my head back in the sand

Possibly the easiest option but we are all getting older and it may not only affect you, but your dependents, too.

FACT 1: People who receive either independent or restricted financial advice are on average £40,000 better off than their unadvised peers. *

FACT 2:  One in three who take financial decisions without independent advice later regret them. **

Take a look at yourself and make that change

Your money could already be with a fund that you believe to be responsible, but have you ever asked about their ethical funds and checked them out?

In 2007, investment in UK green and ethical retail funds totalled around £8.9 billion, 10 years later in Oct 2017 this figure has nearly doubled to an estimated figure of just over £16 billion.***

Conventionally ethical investments are perceived to provide less returns than non-ethical investments.  However the latest research suggests quite the opposite. Research by Moneyfacts in Nov 2017 comparing performance of ethical versus non-ethically screened funds concludes: – “With every passing year, the traditional view that investing ethically entails sacrificing profits looks increasingly outdated,” said Richard Eagling, head of Pensions and Investments at moneyfacts.co.uk. “In our latest survey, ethical funds have more than held their own.” Their research revealed that ethical funds are performing remarkably well in the current economic climate, proving that investors can stick to their principles and still enjoy healthy investment returns. The average ethical fund has posted gains of 24% over 2017, compared with 18% growth from the average non-ethical fund. Ethical funds have also outperformed non-ethical funds 2014-2017 years, with the average ethical fund up 36% compared with 31% for the average non-ethical fund. ****

Easter is coming, don’t put all your nest eggs in the wrong basket, make yours an Ethical Easter egg.

Check out Investing Ethically’s Early Future Planning page or for an initial consultation at no cost without obligation call on 01603 309020, let’s get ethical.

* Research by the International Longevity Centre-UK (ILC-UK) http://www.ilcuk.org.uk/index.php/publications/publication_details/the_value_of_financial_advice  July 2017

**Unbiased.co.uk and AXA Life Invest Oct 2014 https://www.unbiased.co.uk/value-of-advice/report-stats

*** Research by the EIRIS foundation

**** Moneyfacts July 2017 IA Sector performances includes Ethical Corporate Bond funds, Non-ethical Corporate Bond funds, Ethical Mixed Investment 40-85% funds, Non-ethical Mixed Investment 40-85% funds, Ethical Global funds, Non-ethical Global funds, Ethical UK All Companies funds, Non-ethical UK All Companies funds