Informed Choice is updating its investment philosophy to incorporate positive impact principles, while aligning its £500 million of client portfolios based on Environmental, Social and Corporate Governance (ESG) factors.
With a high and growing number of clients viewing the ESG credentials of their investments as important or essential, and the pandemic serving as a catalyst for the global movement to net zero, the updated Informed Choice investment philosophy strives for progress over perfection.
Informed Choice managing director Shelley McCarthy said:
Our updated investment philosophy recognises that investing for positive impact is about progress, not perfection.
Rapid evolution within the ESG marketplace in recent years means it is now possible to achieve competitive risk-adjusted returns while making a positive social impact with investments.
As the global economy ‘builds back better’ following the pandemic, allocation of capital will increasingly move away from carbon-intensive companies and towards those supporting a more sustainable future.
With around £500 million of client investment assets under influence, we are in a privileged position to make a significant positive contribution to society and the planet when making investment recommendations.
As part of the realignment of its portfolios, Informed Choice became a Partner firm of Worthstone. Gavin Francis, founder and director of Worthstone, said:
Enlightened financial planners are rising to lead, preparing themselves for a growing number of investors looking to generate positive impact when investing. Worthstone is proud that Informed Choice have joined the ranks of its Partner firms.
This new partnership heralds a commitment to sustainable and impact-led investing as Shelley McCarthy and her team prepare for the growth in the market and the increasing number of investors who want to engage their wealth to make a meaningful difference in the environment and society, alongside a safe and secure financial return.
As part of the realignment of its portfolios over the coming months, Informed Choice is also assessing the ESG credentials of its chosen providers and suppliers, and wants to encourage its peers in the financial planning profession to embrace its potential to make the world a better place.
In conversations with our clients, we increasingly recognised that investment and pension assets have significantly greater potential for making a positive impact than our day-to-day lifestyle choices.
We can all recycle, drive low emission vehicles and limit our carbon footprint, but unless our money is working hard to deliver a positive impact, and not funding harmful activities, the potential for positive change is squandered.
Investing for a positive impact is the only viable future for advisers and investors. We are excited about being part of this positive change.