It’s been a wild and windy start to October, complete with flooding rains and earthquakes. Markets have been much the same, with volatility increasing as we move through the seasonally turbulent September/October period. Losses on the Australian Stock Exchange during September snapped an 11 month streak of monthly gains. But there are reasons for optimism: along with the warmer weather, rising vaccination rates are paving the way for the re-opening of borders and business after another winter of seemingly endless lockdowns.
Ethical, responsible, sustainable – call it what you will, but investing with a social conscience is on the rise. So, in this month’s snapshot we discuss what is meant by responsible investing, who is leading the trend and whether the returns are as good as the mainstream alternatives.
The concept of “ethical investing” is extremely subjective, and prone to nuance and manipulation. At Akambo, we have used ESG (environmental, social governance) considerations for many years to help guide our investment decisions on the belief that in order to be a good business (and therefore a good investment), a company needs to embrace a sound ESG approach. Of course, it is important to emphasise that ESG considerations are but one of many factors that determine whether a particular business is a sound investment.
As always, if you would like to discuss your investment strategy, don’t hesitate to contact our office on 03 9602 3233.
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