INSIGHTS WITH EVALESCO
Investing sustainably, also known as ESG investing, is a growing trend within Australia. ESG stands for Environmental, Social and Governance, and represents the non-financial factors that define how responsible an investment is – and therefore how risky or appealing a prospect is to an investor.
Examples of ESG criteria might include
Environmental – total carbon emissions, water and air pollution levels.
Social – diversity within the organisation, commitment to equitable labour or dedication to social justice.
Governance – which, if any, political parties the company is associated with or how often they are audited.
In some cases, individuals might use their personal preferences or principles to negatively screen investments, refusing to buy into problematic industries like tobacco, arms or alcohol.
How do sustainable investments perform?
In short, these investments generally perform well. In fact, sustainable investments in Australia have been shown to outperform multi-sector funds over the short and mid-term, and to significantly outperform the mainstream Australian share fund benchmarks over a ten-year period. You can find out more in the recent report by the Responsible Investment Association of Australasia.
The average responsible investment fund in Australia will outperform the ASX total return over a five or ten year period.
How can I invest sustainably?
Your financial adviser can work with you to create a strategy that invests either wholly or partly in ESGs. Generally, people with a responsible investment strategy opt in for a strategy that integrates ESG assets into their existing portfolio.
When considering the wide variety of sustainable investment options, it is crucial to decide on what is non-negotiable from your perspective – for example, do you want to champion the environment, increase diversity or promote growth in developing sectors?
Having this direction and the guidance of an expert will help you to narrow down choices and put together a portfolio that works for you. We can help, so please reach out if you have any questions of would like to discuss this further.
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We believe the true value of financial advice isn’t found in dollars and cents (although this is important too!) but in the peace of mind a financial plan can provide. It’s knowing where you want to go and how to get there, with a dedicated team behind you every step of the way.
We know the impact of good holistic financial advice can make and we have the life experience, technical capability and quality support team that can make that difference for you. We’ve empowered over 1000 families through the delivery of great financial advice, to be healthy, wealthy and happy.
The amount of super you’ll need when you retire depends on your big costs in retirement and the lifestyle you want. The Associate of Superannuation Funds of Australia (ASFA) estimates for a single $44,224 a year and for couples $62,562 a year is how much you may need. This is only an indicator and our advisers assess everyone’s individual circumstances.
The fees we charge for financial advice is only a fraction of the value we derive for our clients, meaning our clients are always better off after seeing us. Rarely do we encounter a new client invested appropriately for their needs, with adequate risk protection, structuring and estate planning provisions in place. Even small tweaks to a financial plan over a long period of time can result in drastically better outcomes for our clients which eclipses the fees of the financial advice. Additionally, you can opt-out of an ongoing fee arrangement at any time.
In our discovery meeting with you our advisers discuss the initial advice fee and the ongoing fees associated with our services.
After our initial phone call to discuss why you are seeking a financial adviser, we arrange a discovery meeting that outlines what is important to you, your current position, our areas of advice, our approach. We then present a Statement of Advice (SoA) to discuss your goals and our recommendations and go through the steps of how to proceed to the implementation stage. After signing the SoA, we discuss your questions, get you to sign the authority to proceed and complete any application forms before implementing the recommendations detailed in the SoA.
One thing to consider is the interest rate on your home loan in comparison to the rate of return on your super fund. Before making a decision, it’s also important to weigh up your stage in life, particularly your age and your appetite for risk. Whatever strategy you choose you’ll need to regularly review your options if you’re making regular voluntary super contributions or extra mortgage repayments. As bank interest rates move and markets fluctuate, the strategy you choose today may be different from the one that is right for you in the future
The information provided on and made available through this website does not constitute financial product advice. The information is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you obtain your own independent professional advice before making any decision in relation to your particular requirements or circumstances. Evalesco Financial Services do not warrant the accuracy, completeness or currency of the information provided on and made available through this website. Past performance of any product discussed on this website is not indicative of future performance. Copyright © 2019 Evalesco Financial Services. All rights reserved