Prosperity Launch Ethical Investment Portfolio Service

Ethical, sustainable and responsible investing are terms largely used interchangeably, whilst all meaning different things to everyone.

Ethical investing is an investment strategy which seeks to consider both financial return and environmental, social and governance (ESG) criteria. We have chosen to use the terms “ESG” and “Ethical” for our sustainable, ethical and responsible investment offering to encompass as many view points and opportunities as possible.

Our ESG Portfolio Construction approach

  • Based on risk profiles, asset allocations and market trends as our standard model portfolios, ensuring investment principals including risk management philosophies are at the forefront of the design. Your prosperity is our business.
  • True to label – genuine ESG integration not just negative screens.
  • Cost-effective – Additional ethical screening comes with additional reporting and review costs, hence it is common for these investments to charge higher investment costs. We ensure these costs are reasonable by utilising the index ETFs to provide core investment exposure at a lower cost to bespoke ESG managed funds.
  • Reputable manager with strong historical performance. We have excluded new to market investments given the higher risk nature of this type of investing.

The Prosperity Investment Committee then reviewed and selected a number of high-quality sustainable investments available in the market. Whilst the investments vary in their sustainability ratings, we are pleased our large holdings are true to label ESG integrated investments. The smaller asset classes are still developing ESG offerings, so in property, infrastructure and emerging markets we are utilising investment managers who are showing progress in sustainable investment philosophies rather than full ESG integrated investments.

If you have any questions about the above, please call your Prosperity Financial Adviser on 1300 795 515 to discuss.