What is ethical investing?
Ethical investing considers its impact on the wider world. It integrates a range of factors into its decision-making processes to ensure that no investment supports potentially damaging industries. Ethical investing pays attention to a range of issues such as climate change, water management, workplace management, ethical innovation, employee diversity, human rights and labour policies and practice. Ethical investing is not philanthropy, while it’s concerned with protecting society and the environment from further harm, its simultaneous goal is to build wealth.
Everyone's deﬁnition of 'ethical' is different and as such, so is everyone's idea of ethical investment. The same applies to fund managers that market their funds as ethical - not all will share the same views or adopt the same strategy for selecting stocks for their funds. Ethical investing has dramatically evolved over the years and today there is a wide variety of ethical investment styles available in the market, such as negative screening, impact investing and engagement, but perhaps the fastest growing investment strategy is environmental, social & governance (ESG) investing.
Our approach to ethical investing
Our investment managers follow a rigorous process when selecting funds for the TAM ESG portfolios, conducting extensive research into the universe of socially responsible investments. This includes one-on-one meetings with fund managers followed by detailed desk-based analysis looking further into the fund’s investment process, portfolio positioning and performance. The team will only select a fund that has proven to deliver on its ethical mandate, adhering to their stringent and comprehensive investment process which screens stocks to ensure only companies with socially responsible business or activities are included.
There is a blend of ethical investment styles incorporated into our TAM ESG portfolios. We want to take full advantage of the developments that have taken place in the ethical market in order to deliver a broader and more diverse ethical investment strategy. Our aim is to appeal to a wide range of socially investors and provide portfolios that best suit their ethical, as well as financial requirements.