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Financial Advice | Financial Planning | Investing | Private Equity
Retained value of investment
Focused reallocated portfolio
Thriving scientist Rachel, 48, has spent the last 20 years living and working in several Asian countries. Through her own experience, she has seen the negative environmental effects of human activity worsen in recent years. While she has made personal lifestyle changes to combat this, she wants to make a more meaningful impact through her investments.
Rachel has an existing £2,000,000 investment portfolio that has no special considerations for climate change, or any other ethical issues. She was in search of a way to align her portfolio with her beliefs, whilst not losing the value and growth of her portfolio. She reached out to us to discuss how best to reallocate her portfolio into more sustainable and socially responsible investments.
During her initial meeting with our advisers, she was advised that ESG-focused portfolio allocations are like conventional portfolios, and can similarly include equities, fixed income, and alternative assets. Before reallocating the portfolio, thought was also put into tax implications, amongst other financial considerations based on her personal background.
Through our ESG-focused model portfolio, Rachel was able to express her beliefs through her investment strategy. Combining active and passive funds, the bespoke portfolio focused on fund managers that invest in companies that are actively making an impact. As the global political landscape shifts towards cleaner technology and a more equitable society, Rachel’s portfolio will be in a good position to benefit from this change.
However, a major problem with ESG investing is that some fund managers who see the growing demand overestimate their strategies are more environmentally focused than they are. This problem, known as greenwashing, makes it difficult to determine the actual, green-focused fund managers from those who are over-exaggerating their claims. In building our ESG portfolios, we focused on managers who have had a long history of investing in companies that are making an impact while also delivering significant returns.
In the end, with expert guidance, Rachel had a bespoke tax-effective portfolio built to achieve her financial goals, whilst being aligned with her personal values.
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