Money
Managing your money
Ethical investments
A recent survey has found that demand for investments in green companies and share schemes with sound ecological methods has doubled in the past year, writes Chris Binding
People are putting their money where their heart is – and they are being richly rewarded as a result.
The new trend has seen independent financial advisers rushing to keep up with demand from customers insisting that their money is invested responsibly.
And there has been a dramatic increase in those offering advice in specialist investments. The number of IFAs advising on ethical investment has increased by 56%, with 734 firms now offering this advice compared to 471 firms last year.
So, you’ve adopted a greener lifestyle in response to the crisis facing the planet. You recycle more than ever. You’re determined to be wiser in your use of energy, drive an eco-friendlier car and think carefully about what you buy at the supermarket.
But there’s one crucial part of your life – one that represents everything you ever worked for – that you might have overlooked: your savings.
Years ago, the only consideration most of us attached to our savings and investment plans was the obvious bottom line – the guaranteed return.
Now, your money has become your most powerful weapon as you attempt to do your bit for the planet. You can ensure your savings and investments are not only giving you a good profit, but they are also being used in a way that matches your green credentials.
Emma Howard Boyd, head of SRI (Socially Responsible Investments) at fund managers Jupiter says new money is being invested by people who really care about the future.
Jupiter’s £190m global Ecology Fund, which invests in companies providing solutions to environmental and social problems, has seen 65 per cent growth over three years, compared to a sector average of 40 per cent.
And Jupiter has recently launched the Global Green Investment Trust, with a portfolio of 60 green companies which is also set to enjoy unprecedented growth in the years to come.
“These investments reflect people’s concern about the environment and their willingness to back companies who are working towards solutions. For parents and grandparents who want to invest in a better future for their children, they could not be better,” says Emma.
If you are looking to move your savings and investments, make sure you get the best independent financial advice from an adviser who isn’t simply interested in jumping on the green bandwagon.
You might want to check out their website to see if they even mention ethical investment, find out how long they have been offering ethical investment advice and if they have any specialist advisers in this area. A good source of information is www.ethicalinvestment.org.uk
* Chris Binding's views represent his own opinions and are for general information only. Always seek independent financial advice.
