Responsible Investing: Explained

31st Aug. 2020

Article written by InvestNow What is ‘Responsible Investing’? From a Fund Manager perspective, Responsible Investing is essentially a values-based approach to selecting the underlying investments within a managed fund; And from an Investor perspective, Responsible Investing is identifying and selecting managed funds that employ a responsible investing strategy; or selecting companies/shares that meet a responsible investing standard.

Article written by InvestNow

Traditional investment – about returns and risk

Traditionally, investment strategies have been primarily focused on return and risk. Fund Managers would select underlying investments (companies) that offered the best returns for an acceptable level of risk, for their customers, with less interest in the nature of those investments and their real-world impact e.g. fossil fuels, tobacco, etc. This traditional approach to investing still exists, and is entirely relevant for some investors, however as society has evolved, consumers have driven demand for investment options that don’t hurt the world around them; And further to that, demand for investment options that have a positive impact.

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