Ethical and values-oriented investing
What is ethical investing?
Ethical means different things to different people, but in this case refers to stocks and sectors that are excluded from an investment portfolio.
This is known as ‘negative screening’. Quilter Cheviot has a firm-wide policy to avoid investing in companies involved in the manufacture, development or trade of controversial weapons, specifically anti-personnel mines and cluster munitions.
There are some sectors which can receive more attention than others (the traditional ‘sin sectors’ – tobacco, arms, gambling, alcohol and pornography) but ultimately ethics are personal, so we do not take a one-size-fits-all approach.
Our approach to ethical investing
We are experienced in integrating ethical policies into our investment process and can screen all direct holdings (fixed income and equities) to make sure that your ethical values are incorporated into the management of your portfolio. These restrictions are loaded onto our dealing system for on-going monitoring and compliance.
How can we help you?
Ethical investing is available to clients who use our Discretionary Portfolio Service (DPS).
Your dedicated investment manager will work with you to build a portfolio based on your environmental, social, and governance (ESG) priorities, screening out sectors and companies you may want to avoid.
How are restrictions applied to portfolios?
To complement our investment manager’s knowledge, we employ an independent specialist firm (Ethical Screening) to screen the securities researched by our analysts.
It is important to make sure that where sectors or activities are substituted, you do not take unintended risks by way of increased concentration in other sectors, for example.