Welcome to Finance & Fury, the ‘Say What Wednesday’ edition, where every week we tackle questions from you guys. This week the question comes from Jason;

“My question is about investing with an Environmental, Social and Governance (ESG) / Ethical investment focus.

Given their increasing popularity, do these types of investments have the potential to make the world a better place?

Historically how have ESG/ethical investments performed in Australia relative to the market and what factors should be considered before investing in this space?”

 

Today we discuss;

  • What are Ethical Investments, and how do they work?
  • Inclusionary v exclusionary managed funds; what types of companies are excluded when making their investment decisions, and what types of companies are included?
  • The difference between ‘Supporting’ and ‘Forcing’ when it comes to the way managed funds impact the underlying investment companies’ practices and what this might mean for you as an investor.
  • What to consider when buying these types of investments.
    • Do they actually meet your definition of ethical? You’d be surprised at some of the companies that are actually ‘recognised as a responsible and ethical investment option’
    • How diversified are you?
    • The performance of these (like all ETFs/managed funds) depends on the underlying performance of the companies that they buy.
  • How have ethical investments performed for the past 12 months? Over the long term?
    • The impact of thematic trends
    • Historical returns

 

We talk about how these types of investments have the potential to make the world a better place, but the pros and cons are not what you might think.

  • Supply drives demand
  • Investment losses due to trying to change companies ‘for the better’

 

https://www.canstar.com.au/investor-hub/10-top-ethical-investment-funds/

 

 

In a world with higher levels of inflation, what investments and strategies will do well and which ones won’t

Welcome to Finance and Fury. What investments will do well and those that wont in a world with higher levels of inflation Financial investments – Been talking about MMT and inflation – but what hasn’t been mention – a lot of these intentions of providing business with...

Do robots pose a danger to the employment sector and what does future of employment look like?

Welcome to Finance and Fury, the Say What Wednesday edition. This week’s question is from Phuong. “Hi Louis - With strikes happening at Sydney’s port recently and worker asking for pay rises, do you think that Robot will eventually replace human workers? And what are...

How do I start my journey to financial independence?

Welcome to Finance and Fury, The Say What Wednesday Edition Series to cover a number of questions asked – FAQ on stages of life Hard to get through all questions – from questions compiled – put together run through of steps Go through 3 or 4 – stages of life – cover...

Investment allocations and structures that can last the test of time and how to ensure that this can be passed to the next generation of family members?

Welcome to Finance and Fury, The Say What Wednesday Edition.  Today's question is from Mario  Thanks so much for continuing to put together your insightful and informative podcasts. I have a question about investment strategies that last the test of time and can...

Will enforcing recycling legislation help to save the environment?

Welcome to Finance and Fury, the ‘Say What Wednesday’ Edition. We recently had an awesome email from Zoe about a potential market solution following the ‘Solution for pollution’ episode last week; “We sort our cans from our mixed recycling in our Sydney CBD office...

Why do banks seem to have the ability to lend never ending amounts of money?

Welcome to Finance and Fury, the Furious Friday edition. Today – discuss the topic of banking policy changes and how this opened the gates for the potential of never-ending money supply in the modern banking system To start with – look at How does money get lent out...

The share market in March! Comparing now to 2008 and 2009 and which one we are closest to?

Welcome to Finance and Fury - Where are we at? Market has been going up - Looking at a chart – March in 3 particular years stand out – 2008, 2009 and 2020 – Why? They are each their own respective bottoms of the market after declines – In this episode - March 2008,...

Where to invest in preparation for the next financial collapse?

Welcome to Finance and Fury Today – Want to start looking at what would likely survive another financial correction or worse, collapse Been thinking a lot recently about the structure of the modern economy – This episode is probably more like a FF ep, but this topic...

Is it better to rent or buy a property in the current economic environment?

Welcome to Finance and Fury, the Say What Wednesday edition. This week the Question is from Emma. “Hi Louis – Would like to get your opinion on if it is a good time to buy a property to live in or if it is better to continue renting? We have saved up for enough of a...

What are the investment opportunities that come from the ageing population trend?

Welcome to Finance and Fury, the Say What Wednesday edition. This week’s question is from Shaf – “I would like to get your opinion/analysis on Australia’s ageing population, and investment opportunities that are linked to this segment of the market. For example,...

Pin It on Pinterest

Share This