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/

 

 

Give the people what they want; Socialism for the masses & the human economy

Furious Friday - Part 1 Give the people what they want; Socialism for the masses & the human economy Haven't Liked us on Facebook yet? Show some love This is going to be a bit of a longer episode in order to unpack this topic fully… You’re probably going to need...

The RBA rate drop will further compound our ‘low growth trap’, rather than stimulating the economy

Welcome to Finance and Fury, The Furious Friday Edition In this ep, we continue looking at the lucky country look at a downward spiral in growth – low growth traps – and how it is created by what is meant to help growth?   Low growth trap – The big problem comes...

Securing your Road to financial independence

Welcome to Finance and Fury Everyone has heard of more money, more problems – it is a bit of a contradictory statement It is false as money can cover bills and be used in emergencies It is true as not valuing money can lead to problems How to value money? What is...

Furious Fridays: Dissecting Labor’s plans for housing affordability

Furious Fridays Dissecting Labor’s plans for housing affordability Welcome Finance and Fury’s Furious Friday episode. Today we’re answering the question we asked on Wednesday about Labor’s polices and their promises to lower housing prices/increase affordability. If...

Say What Wednesdays: Shorten Vs Morrison

Say What Wednesdays Shorten vs Morrison Government "Spending" Everything is portrayed as a ‘cost’, which is ironic. “Costs” from the Government’s perspective is simply NOT charging you tax. Not taking all income earned is a trillion-dollar cost to them.  ...

Furious Fridays: Is progressivism the destroyer of equal opportunity?

Welcome everyone to Finance and Fury, the Furious Friday edition. Today’s episode is part 5 of the miniseries. The last part looked at the ‘fair go’, what is fair for some, isn’t for others. Nearing the end of the series, I want to put forward a case. The constant...

Say What Wednesdays: Should I lock in a fixed rate on my home loan with interest rates so low?

Say What Wednesdays Should I lock in a fixed rate on my home loan with interest rates so low? Welcome to Say What Wednesdays – Where we answer your questions about personal finance and the economy! This week’s question comes from Michael. His question related to...

Furious Fridays: Is minimum wage such a good thing after all?

Furious Friday Is minimum wage such a good thing after all? Welcome to Finance and Fury! The main aim of our Furious Friday editions is to clear up misconceptions. We’ve been seeing a lot of news stories lately about companies underpaying staff – 7-Eleven, hospitality...

Furious Fridays: The Devil giveth and the Devil taketh away

Furious Friday The Devil giveth and the Devil taketh away Welcome to Finance and Fury! If you haven’t listened to last Friday’s episode go check it out, it’s a prelude to this episode. Today we are going to discuss the founder of Communism – Karl Marx, along with his...

(Intro Series) The wrap up party

Intro - Episode 6 The wrap up party Hey guys! Welcome to the wrap up party for this little intro series Well done if you’ve made it to this point listening. I know a lot of it could have come across pretty confusing …and don’t worry I was quite confused myself by this...

Pin It on Pinterest

Share This