Why these clients chose sustainable investments
We speak to a couple who wanted their investments to align with their passion for the environment. Find out about how we helped make it happen.
A significant part of managing a client’s money is about understanding what is important to them.
Of course people want their money to grow, and we have a team that is dedicated to analysing the global economy to find the right blend of investments. But wealth planning is also about helping people achieve a fulfilling life beyond pure financial returns.
That can range from ensuring they have enough money to live comfortably in retirement, to enabling them to leave an inheritance for their children and grandchildren. For many clients, leaving an inheritance is about more than money, it is about the type of world they want to leave behind for future generations.
We spoke to two clients about why they want sustainability to be at the heart of their investments and how we were able to help them with our Sustainable Portfolio Service (SPS).
Colin and Charlotte are surrounded by the natural world. They live in the countryside and have a dog, chickens, and horses. Charlotte runs a floral design business in Yorkshire and they spend much of their free time outdoors.
But while they were out enjoying the paths and trails near their home, they noticed environmental changes happening in real time around them. This caused them to think about their own impact.
Impact through investing
Beyond day-to-day actions, like recycling, they realised that a significant way to take ownership around sustainability was through where they were investing.
But as Charlotte says: “Do I actually know what I’m investing in? Not really, I find it hard work.”
That is what we are here for at Arbuthnot Latham. We can take the stress out of managing money and ensure your finances align with your goals and values.
Colin and Charlotte’s relationship manager, Julia Tyrrell, says:
“Colin and Charlotte raised their sustainability goals in one of our meetings and highlighted that it is something they were passionate about.
“We had been working on a sustainable investment product because it was something that was resonating with more and more people. So, we had something to bring to the table for them.”
Screening funds
It was important to Colin and Charlotte that we had robust criteria for choosing the funds within their portfolio.
Colin says: “We wanted to know what the investments were actively avoiding and what we are measuring against. Are they actually strongly ESG-rated or does it just have a green label on it?”
Although sustainable investments tend to avoid things like oil and tobacco, our choice of funds are properly screened to ensure they go beyond these basics and truly make a measurable difference from a sustainability perspective.
Once they were satisfied, Julia along with their investment manager, Freddie Gabbertas, were able to support the transition from their original investment strategy in a tax efficient way.
Now that the money has been transitioned, Colin and Charlotte feel like it has made a difference. They say their investments are likely having a bigger impact on sustainability than anything else they are doing, while still adhering to the same risk constraints they are comfortable with.
And they have been impressed with our ongoing management and oversight.
For instance, after a regular review of the investments from the sustainable committee found one fund no longer met our standards, it was sold.
Colin says: “That was good for us to hear. It showed it was not just a green label and that you were holding funds accountable.”
Advice for others
When asked about their advice for others interested in ESG investing, they said you should think about where the interest comes from and why it is important to you. It is an area where you can have an impact, but you should educate yourself and make the choice actively.
Our team of bankers and wealth planners are here to understand what you want to achieve and help you decide how your money can help you live the life you want.
If you want to know more about our range of investments, speak to your relationship manager or get in touch.
Investment Management
Our investment management service is designed to deliver your financial goals using a robust framework that leverages our collective investment committee approach.
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This communication should be considered a marketing communication. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research. It is for information purposes only and does not constitute advice, a solicitation, recommendation or an offer to buy or sell any security or other investment or banking product or service. You should seek professional advice before making any investment decision. The value of investments, and the income from them can fall as well as rise, and may be affected by exchange rate fluctuations. Investors could get back less than they invest. Past performance is not a reliable indicator of future results. The tax treatment of investments depends upon individual circumstances and may be subject to change.
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