Ethical investment turns 50 this year, and ethical financial advisers are celebrating excellent investment performance and the industry’s coming of age by launching the inaugural Ethical Investment Week 13-20th October 2014.
In 1964 race riots exploded in Rochester, New York, a company town whose black inhabitants were treated like slaves by employer Kodak Eastman. Socialist agitator and creative protestor Saul Alinksy became involved and lobbied church organisations for their proxies at Kodak’s AGM. The Unitarian Universalist Association backed Alinksy with their entire holdings (5620 shares worth $700,000) and what began as a little troublemaking became a tactical lynchpin for the civil rights movement.
In fact, religious organisations had been investing ethically for centuries, but Alinksy’s audacious move was a match thrown into the tinderbox of the America’s quest for equality, and the modern ethical investment industry was born. From the 60’s to the 90’s, investors took on weapons manufacturers, the Apartheid regime, big-tobacco and Nike’s sweatshops with significant success.
Behind the scenes, ethical financial advisers and fund managers are suit-and-tie professionals building portfolios which ‘do well and do good.’ The industry has established an excellent track record for financial performance. ‘Core ethical funds in Australia manage over $25 billion in assets and have outperformed comparative Australian, International and Multi-sector benchmarks over 5 and 10 years. Some of the best performances have come from the ‘deepest green’ funds.’ says Adelaide based financial adviser Paul Garner.
With all this going for the industry, it’s no surprise that ethical investment is growing fast (51% pa) but it still only makes up 2.3% of total Assets under Management. (Source RIAA Benchmarking Report) ‘There’s a huge knowledge gap. Millions of investors, including those with deep social and environmental consciences have never thought about where their money is invested, and don’t know that they have a choice in the matter’ says Perth adviser Paul Elkington.
Yet options abound. Specialist ethical advisers have recently formed a national co-operative with advisers in every state. To celebrate the financial and social success of the industry, the Ethical Advisers Co-op (EAC) Co-op is holding Ethical Investment Week, a series of events and information sessions designed to make ethical investment more accessible. For more information see www.ethicaladviserscoop.org
‘Everything is coming together for this industry. Investors are realising that they can make a competitive financial return without compromising their values. Great work is been done by groups like 350.org and Market Forces to highlight specific issues. Well known, respected investors have already started moving their money. Warren Buffet is investing $2 billion in wind energy. The Rockefeller Fund has divested from fossil fuel investments. The time is ripe for everyday investors to move their money to smarter choices’ says Karen McLeod, Chairperson of the EAC.
Ancient Greek dramatist Antiphanes pronounced ‘The quest for riches darkens the sense of right and wrong.’ How refreshing, nearly 2500 years later, to prove that a sense of right and wrong can enlighten the quest for riches.
James Baird from JustInvest will be participating in:
The SW Divestment Forum in Margaret River on Thurs 16th October 6pm RSVP: https://swdivestmentforum.eventbrite.com.au
Movie screening ‘Divide in Concord’ on Mon 27th October, 6pm. An entertaining feature length doco about the battle to rid Concord (whose patriots fired the first shot in the American War of Independence) of plastic bottles. RSVP: https://divideinconcordperth.eventbrite.com.au
The Conservation Council WA Spring Festival: Sun 26th Oct 11am-4pm http://ccwa.org.au/springfest
