Ethical Portfolios & Manx Credit Union

Ethical Investing, or as is sometimes called “Socially Responsible Investing”, involves avoiding investing in companies which manufacture “harmful” products such as alcohol, tobacco, or weapons. Often the investment focus is on companies providing good or services which deliver economic, social and environmental benefits for society.

We have constructed four portfolios. These each contain ten funds: three fixed interest funds, six equity funds and one property fund.

The performance of each portfolio has been excellent over 3 years:

 

Ethical Cautious:                          7.06% per year*  Prospective volatility 3/10

Ethical Cautious Growth:             7.85% per year    Prospective volatility 4/10

Ethical Balanced:                         8.80% per year    Prospective volatility 6/10

Ethical Balanced Growth:            9.98% per year    Prospective volatility 7/10

(*based on Old Mutual U-Scan as at 2 October 2017)

 

A graph of 3 year performance versus volatility is below: 

 

Funds included within the ethical portfolios have been chosen on the basis of:

  • Low charges
  • Excellent long-term performance
  • Ethical credentials
  • Returns versus risks taken
  • Geographical dispersion of assets

The ethical stance of the fund providers included within our portfolios as stated by the fund providers:

Kames: invests “in equities and equity type securities in companies which meets the funds predefined ethical criteria”.

Henderson: “Investment will only be made in those companies whose products and practices are considered by the authorised Corporate Director to enhance the environment and life of the community”.

Rathbone: invests “in a range of bond and bond market instruments that meet strict criteria ethically and financially”.

Liontrust: “invests only in companies that meet their rules for environmental and social responsibility”.

Stewart: “The fund invests in companies which are positioned from, and contribute to, the sustainable development of the countries in which they operate”.

Royal London: “The fund is screened in accordance with The Co-operative Investments’ ethical investment policy. However, for the sole purpose of asset collection, the fund may enter into transactions in index derivatives where some of the underlying constituents may not fully meet this policy”.

Standard Life: “The fund aims to provide long term growth by investing in a diversified portfolio of UK equity assets that meet our strict ethical criteria”.

Stewart: “The fund invests in companies which are positioned from, and contribute to, the sustainable development of the countries in which they operate”.

M&G: have signed up to the United Nations Principles of Responsible Investing.

*Performance to 30 June 2017 assuming the investments were made on 1 July 2014 in the currently allocated proportions.

A Manx Credit Union was established in 2016 – to find out more about how this organisation can benefit the local community and how you can use their services please <CLICK HERE>