Ethical / Socially Responsible Investment

As part of our Wealth Management services to clients, we are able to guide you where to invest monies if an ethical/socially responsible investment approach is something you would like to have considered for your portfolio and pension investments.

 

There has been a growing trend over the last few years for clients wishing to have all, or part of their money, with an ethical/socially responsible screen (positive or negative screening) applied to their investment management.

 

As part of the planning and investment suitability process we have an in-depth discussion concerning your investment views, taking into account your capacity for loss and risk aptitude to investing your money that will sit alongside your overall financial planning needs.

 

There is no particular right or wrong way to invest in terms of ethical/socially responsible investment versus other types of investments, you simply need to have peace of mind that you are happy with your investment choices and own philosophy around how your money is being used to gain suitable investment returns to meet your goals.

 

At King’s Court, we are able to provide an ethical/socially responsible screening process to help clients invest in styles of funds that meets their values. These funds are available for investment portfolios and pension contributions with the scope of funds available now being greatly improved as the ethical/social responsible investment sector has grown in popularity.

 

A new type of socially responsible investment has recently started to gain momentum, this being called Social Impact investing. There is significantly greater risk than mainstream ethical investment associated with this newer type of socially responsible investing, but if clients wish to have a very targeted and geographic influence on how their money is invested, which provides a direct ‘social impact’ e.g. helping local youth work or supporting homeless charities, for a proportion of their investment this may meet part of their investment ‘values’.

 

An attraction to social impact investing is that with some funds there is tax relief available for tax payers under the Government Treasuries ‘Social Impact Tax Relief’ (SITR) rules, where up to 30% of income tax and potential Capital Gains Tax Relief (CGT) deferral can be achieved using similar rules to Enterprise Investment Schemes (EIS).

 

Again, King’s Court can help you decide if this type of investment is suitable to your circumstances and you are willing to take the associated extra risks with part of your monies available for investment.