Liontrust’s top 10 ethical stocks

TL;DR

Ethical investing is gaining popularity as people realize the impact their investments can have on the world, and evidence shows that it does not sacrifice returns.

Transcript

with me today I have Peter Michaelis who runs the line trust UK Ithaca fund hello Peter hi Emma ethically investing is come a long way in the past few years there's more popular than ever but why do you think that is well I think finally people are making the link that you know the way they invest matters and it affects the world and so just as peo... Read More

Key Insights

• 🌍 Ethical investing is driven by individuals who want to align their investments with their values and make a positive impact on the world.
• ↩️ Evidence suggests that ethical investing does not compromise returns and may even outperform mainstream strategies.
• 🌍 Sustainable strategies focus on companies that contribute to a cleaner, healthier, and safer world, benefiting from societal changes and consumer preferences.
• ✋ Ethical investing avoids sectors with high negative costs on society, such as tobacco, arms manufacturing, and fossil fuels.
• ❓ Traditional companies can be considered ethical investments if they have a positive impact, such as improving energy efficiency or contributing to a circular economy.
• 🎴 Insurance companies, like Prudential, play a significant role in providing security and mitigating risks, especially in regions with low insurance penetration.
• 🥺 Increasing consumer awareness and demand for sustainable packaging, like cardboard, may lead to further growth in companies like Smurfit Kappa.

Questions & Answers

Q: Why has ethical investing become more popular?

Ethical investing has gained popularity as people connect their investment choices with creating positive change in the world. Just as they consider their principles while shopping for food and clothing, they are now extending those principles to their investment decisions.

Q: Do investors have to sacrifice returns to invest ethically?

No, evidence shows that ethical investing does not lead to reduced returns. Companies that focus on sustainability and positive impact tend to outperform mainstream strategies, as they benefit from the changes in society and consumer preferences.

Q: How does the fund define ethical investing?

The fund invests in companies that align with the strong structural trends of a cleaner, healthier, and safer world. It focuses on companies that contribute to pollution control, provide vaccines, and ensure cybersecurity. The fund also avoids sectors with high negative costs on society, such as tobacco, arms manufacturing, and fossil fuels.

Q: What makes some seemingly traditional companies ethical investments?

Some traditional companies can be considered ethical investments based on their positive impact. For example, Kingspan manufactures thermal insulation for buildings, improving energy efficiency. Prudential, an insurance company, plays a crucial role in Southeast Asia, where insurance penetration is low, enabling individuals to mitigate risks and plan for the future. Smurfit Kappa, a packaging company, utilizes recycled cardboard, contributing to a circular economy and reducing plastic waste.

Summary & Key Takeaways

• Ethical investing has become more popular as people recognize that their investment choices can shape the world.

• Contrary to previous beliefs, evidence suggests that investing ethically does not lead to reduced returns.

• Sustainable strategies focus on companies that contribute positively to a cleaner, healthier, and safer world.