Ethical Investing

Whilst text books teach us that ethical means a negative screen is applied, here at King & Shaxson, we are in fact adding much more to the investment process. Whilst screening out the ‘evils’, such as oil, gas, coal, poor governance and tobacco, we implement a positive inclusion, which by its very nature finances solutions to social and environmental issues. All of which comes on top of the standard investment criteria.

Our sole interest is ethical investing, meaning we can take the above concept and invest in issues that are close to our client’s hearts, whilst also seeking positive returns over the long term.

Personal Discretionary Service

At King & Shaxson we understand each client has a different opinion on what ethical investing is, emphasising the necessity to develop an individualistic approach.

With our personal discretionary management service we don’t tell our clients what ethical investing is, we allow them to tell us, meaning we have a more human approach to investing with our clients via their financial adviser. Our extensive value based questionnaire allows us to gain a strong understanding of the investments mission as well as an understanding of the client’s motives.

This enables the fund managers to build a portfolio proposal which then enables active communication between fund manager, adviser and end client. The investment pack includes the fund manager’s rationale, allowing the client to fully understand how their ethical stance has been reflected in their portfolio.

What opportunities exist?

  • Fixed income: social housing bonds, microfinance, off grid renewable finance, African leasing and railway bonds
  • Property: Social housing, private sector rental and medical properties
  • Equity: renewable energy, healthcare, environment, public transport, infrastructure, food and housing
  • Cash: ready to be utilised or increased based on market conditions and clients risk profile

The above thematic investments, by their very nature, are largely engaged in positive social or environmental activities. This leaves the door open to non-thematic investments which although they have no formal ethical criteria, are deemed to exhibit the best ethical practices within their industry.

Platform Model Portfolios

With our model portfolios, our ethical approach aims to meet the majority of ethical investors’ concerns, with the investment decision involving a positive as well as a negative screen. Areas with significant involvement in armaments, tobacco, human rights violations and poor environmental management are avoided in what is called a negative screen. Companies that are perceived to have a direct positive impact on social and environmental issues are included in the positive screen.

Using a mixture of the two types of screening allows our fund managers to consider all types of firms during the investment decision.

Is your client already invested in a platform product or other discretionary service? Make the most of King & Shaxson’s ethical screening service to understand how ethical their portfolio is.