What constitutes an ethical investment? Is there a set of rules for something to be considered ethical? I am reasonably well off financially, but want to make sure my investments do not include coal and oil companies. How do I make sure that that is the case? Can a financial adviser help with this?
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What a great question Kim.
I receive this question very often. The interesting thing is that the definition of an “ethical” investment differs from investor to investor. I have clients who believe our supermarket giants are “unethical” as they don’t give our farmers a fair deal. I have clients who view the banks as “unethical” due to many dubious fees and charges they apply and, I even have clients who view pharmaceutical companies as “unethical” due to the exorbitant prices they charge for many of their drugs.
As the saying goes, ‘beauty is in the eye of the beholder’, in this case, ethical investment is in the eye of the investor.
The only way to truly match your investments to your values, goals and objectives is to take control of them, with the help of a trusted professional adviser. With my advice, all of my clients invest in direct investments they understand and can control, whether that be through their superannuation or other investment portfolios.
We make investment decisions together that match their values and goals. In doing so, we can all achieve our desired lifestyle and financial success and, more importantly, be able to sleep at night.
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