Investing for a better future
This week saw the release of probably one of the most significant climate change research documents in our history. The challenges we face as a global community are now most definitely visible and our habits are now having a devastating impact on our environment.
We all have the power to make a difference
Environmental, Social and Governance ESG investing is focussed upon building a brighter, sustainable future for us all. It’s goal is to generate longer term investment returns through the allocation of capital across assets that meet the investment managers strict environmental, social and governance criteria.
At Nelson Life we have access to leading investment managers who are now allowing you to make a difference by ensuring ESG considerations are part of the investment process. You can now choose to invest into a ESG investment fund either by lump sum investment, regular investment for non pension ad pension monies.
Returns
The consideration of sustainability risks can impact on the returns of financial products. There is a common misconception that you will have to sacrifice returns in order to be a more responsible investor, or that ethical funds under perform. Some asset managers, especially the larger ones can have a strong influence on the engagement with the companies they invest into to ensure that the highest ESG standards are a core focus for the key decision makers.
Align your investments with your values
There is no reason why you cannot align your values of having a positive impact on the world with aiming to generate a financial return over the longer term.
What is a an ESG multi-asset fund?
Funds invest into a diversified range of equity and bonds.
Equities/shares investing for an impact - the fund aims to invest into those companies whose objectives are to have a positive and measurable societal and environmental impact on the world around us. For example, companies that specifically address climate change and/or unsustainable production and consumption.
Bonds investing for sustainable and responsible investing - the fund aims to invest into bonds from companies who have a higher ESG score on how they run their business and their effect on the planet. For example, companies that have a lower carbon footprint and lower risks to the planet and its people and habitat.
Avoid harm
Funds will aim to to avoid companies who industry or practices pose a longer term threat to people or the planet. For example, the fund will avoid companies that don’t meet standards on corruptions, human rights and environmental measures. It will also avoid those that extract unconventional oil and gas (drilling for and extraction of oil/shale gas), produce tobacco and extract thermal coal.
Who are these funds suitable for
can take a risk with your capital.
are seeking the potential for longer term capital appreciation (ideally investment term of 7 years plus)
interested in investing into organisations that deliver a positive environmental impacts, lower carbon footprint and lower risks to the earth and its inhabitants
This fund is NOT suitable for you if
you don’t want to take any risk with your investment capital.
not prepared to accept any periods of losses due to the volatile nature o investment markets.
have specific ethical or moral investing requirements (ethical funds may be more appropriate).
have investment term of less than 5 years.
RISK factors
All investments involve risk. this fund offers no guarantee against loss or that the fund objective will be attained. This is NOT a guaranteed capital or capital protected investment. There are RISKS to your capital should you choose to invest into this fund.
Want to know more? We are available to discuss your options, and we look forward to hearing from you.
Our job is to help you choose a product and structure that will help you meet your goals.
telephone | 091441188 and/or email | office@nelsonlife.ie
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Nelson Life Limited trading as Nelson Life is regulated by the Central Bank of Ireland.
WARNING: Past performance is not a reliable guide to future performance. WARNING: The value of your investment may go down as well as up. WARNING: You may lose some or all of the money you invest. WARNING: These funds may be affected by changes in currency exchange rates. WARNING: If you invest into this product you will have access until you retire (Pension Products). WARNING: The above content does not constitute investment advice, as it does not take into account the investment objectives, knowledge and experience of financial situation of any particular person. Prospective investors are advised to make their own assessment of the information contained herein and to obtain professional advice suitable to their own individual circumstances. WARNING: The information contained in this document is based on our understanding of current tax legislation and the current Revenue Commissioners interpretation thereof and is subject to change including retrospectively without notice. This is intended as a general guide only and is not a substitute for professional tax, legal and investment advice.