Discover how David and Patrick were able to build wealth while remaining true to their values.
David, 33, and Patrick, 35, are looking to set themselves up for the future, while still “doing good”. Here’s how they built an investment portfolio that could do both.
Using your wealth with purpose
David and Patrick are at the stage in life where they want to regularly set aside part of their income to invest for their future. They have strong beliefs about using their wealth to do the right thing, so it was important that their investments supported society and the environment.
Through their research, the couple discovered there is a growing number of investment options that seek to achieve clean, green outcomes and provide community benefits.
Helping to make a difference
Working with their licensed financial adviser, they looked at the outcomes they wanted their investments to support, as well as their own financial goals. The couple then identified different investments that met their needs and investigated those options to get a feel for how their money would be spent.
Their Australian Unity investments now include:
10Invest, a 10-year investment bond that they add money to each month. This fund pays tax as it goes, so the couple won’t be hit by personal tax when they withdraw their money.
David and Patrick are also researching social infrastructure funds, which develop assets society needs to function, such as schools and hospitals.
Investing in a better world
By carefully researching their investment options, David and Patrick were able to invest in their future while also supporting the causes they care about.
Tips for investing responsibly
Like David and Patrick, more and more investors are choosing to invest ethically. The Responsible Investment Association of Australasia (RIAA)’s latest 2019 Australia benchmark report shows $2.24 trillion has already been invested responsibly, representing 44 per cent of all professionally managed assets under management (as a proportion of total assets under management) in the country. Listed below, are some tips to help you start.
Tips for investing responsibly
Investment funds use lots of different approaches, so it’s important to really get a feel for what you’re investing in before you allocate money to a fund. Read product disclosure statements carefully and work with a licensed financial adviser.
Some funds invest with a positive screen, which means they only put money into investments that do good — renewable energy projects are an example. Other funds have a negative screen, which means they avoid investing in companies that contribute to a negative environmental or poor societal outcome, such as tobacco businesses.
Decide what you’re passionate about supporting. Some people want to contribute to better environmental outcomes, for example, while others want to invest in things that help humanity, like medical research.
Look for licensed financial advisers and products and services that have been certified by the RIAA. This gives you confidence you are investing with people with experience and expertise in ethical investing.
Some funds have marketing that looks clean and green, but if you take an in-depth look into them, you’ll find they aren’t as environmentally friendly as they may seem to be. Check each fund’s credentials before you invest.
RIAA’s 2019 Australia research shows ethical funds perform just as well — if not better — than other funds. So, you can have confidence that when you’re investing responsibly, you’re building your wealth too.
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