Many people have good intentions to invest ethically, but are hesitant to take radical action with an existing portfolio they may have built and nurtured over many years.
If you are interested in sustainable investing, but aren’t sure what to ditch and keep, or keluaran hk siang how to find and probe decent replacement funds and data hk siang trusts, we have asked financial experts to explain what steps to take.
There is much debate about whether it is better to divest from fossil fuel and other non-sustainable investments, or to stick with them and
It’s a good idea to make up your mind where you stand on this as it will inform any review of your investments, and decisions on how thoroughly you want to overhaul them.
Portfolio makeover: How to work out what to ditch and what to keep if you want to invest more sustainably
1.Review your current holdings
You should ask yourself the following questions when considering a ‘green’ makeover of your funds, suggests Fidelity International’s investment director Maike Currie.
– Do you personally agree with the companies your funds are invested in?
– Have the fund managers held companies to account through engagement and voting activities?
– Are there certain companies or industries you want to exclude completely?
‘The answers to these questions should inform both your head and your heart, enabling you to decide whether the fund is right for you,’ she says.
Currie says you should examine the factsheets of the funds you are currently invested in.
‘These will provide an in-depth look into the fund, including information on the top holdings, regions and sustainability ratings and characteristics.
‘Do note however that there can be a lag between the latest fund factsheet and the fund’s most current holdings.’
2.Consider the broader investing outlook
In the near term, ‘environment social and governance’ funds are facing a few performance headwinds, keluaran hk says Jason Hollands, managing director at investing platform Bestinvest.
He highlights soaring oil and commodity prices, a rally in defence stocks as European governments pledge to ratchet up spending, and the tobacco sector being one of the few areas to generate positive returns this year.
‘The average ESG global equity fund also has around 21 per cent in technology stocks, which have struggled since the start of year as the markets have repriced the present value of future earnings on the back of higher inflation and rising borrowing costs,’ says Hollands.
‘But in spite of these current near term factors, increased numbers of long-term investors do want their money to be invested sustainably.
‘In fact according to Investment Association data hk siang, the share of total UK industry asset under management in ESG funds has grown from 2.7 per cent in the first quarter of 2020 to 5.6 per cent in the fourth quarter of 2021.’
Hollands adds: ‘Ultimately much higher prices for oil and gas support the case for both reducing reliance on fossil fuels and improving energy efficiency, alongside the drive to achieve net zero carbon emissions by 2050.’
3.Explore options on your investing platform or in your work pension
‘While ethical, responsible or green funds used to be quite niche, keluaran hk siang these days they are far more common, allowing investors lots of options to populate diverse portfolios,’ says Rob Morgan, chief analyst at Charles Stanley Direct.
‘If you are using an investment platform, keluaran hk you will have plenty of options from different providers.If you are investing via, for instance, a workplace pension then there may be a more limited number available.
<div class="art-ins mol-factbox floatRHS money" data-version="2" id="mol-c319a570-a092-11ec-831b-01e053235265" website to review your portfolio and give it a green makeover