Ethical Investment Advisers specialise in environmental and socially responsible investment and have become specialists in using direct shares within investment portfolios and self managed superannuation funds (SMSF). This allows the investor to be very specific about the ethics of investments in their portfolio. We can provide ongoing investment services and administration services for SMSFs. The company is a Principal Member of the FPA and has advisers who are Members of the Ethical Investment Association.

What is Ethical Investment?

Ethical investment has several names, some people call it directed investment, others socially responsible investment. But the basic principle behind the concept is to enable you to integrate your personal values and social concerns with your investment objectives, using financially sound investments.

What makes an investment ethical?

You do! Everyone has their own set of ethics, values and opinions. So, for example, if you are opposed to armaments, wood-chipping and alcohol, you would not wish to invest in companies involved in those industries. However, you might still be investing in them indirectly through your bank, superannuation or insurance bond.
Concerns range from alcohol, animal testing, arms, tobacco, gambling, chemicals, drugs, nuclear industry and pollution, to specific countries with repressive regimes. Many investors actively want to support certain industries. You might choose to invest positively by investing in companies with affirmative environmental programs such as reafforestation, recycling and pollution control.

Is ethical investment safe and can I make money?

You choose the risk profile of your investment portfolio. We would find out your investor profile before recommending investments suitable for you. You also can choose, to a certain degree, the level of income and/or growth you want. The performance and security of ethical investments tend to mirror the general investment markets, ranging from very secure government-backed investments to speculative company shares. Some investments generate higher than average growth and/or income, while others are involved in activities or services that limit their rate of return. Normally, ethical investors have a balanced portfolio with some funds in very secure investments and some in more speculative areas. There are no entrepreneurial stocks in the ethical investment portfolio.

Can I get my money when I want it?

Each investment has rules regarding withdrawals, ranging from at call to longer term. Normally you can withdraw funds quite quickly (i.e. shares can be sold and funds are available within five working days). In some cases, such as growth type investments, the minimum recommended investment time is two to three years. We recommend that you invest in different types of investment so that some of it is immediately accessible at all times. Special rules apply to superannuation.

What is the role of an ethical investment adviser?

An ethical investment adviser provides you with the information and assistance you need to make decisions which suit your personal financial and ethical standards. Like all licensed advisers, we have been trained to a very high standard and have to comply with rigorous laws and regulations to maintain our licence, including having extensive knowledge of the investments we recommend. We also rebate all commissions back to you, and charge only a pre-agreed fee for services, so we are not investing your funds to maximise our income. In this way we can be completely unbiased when looking at your situation.

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