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Investors worth £550bn urge government for legal clarity on fiduciary duty

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Investors with over £550 billion in assets under management have called on the government to consider legal clarification when it comes to stewardship issues. This follows on from the Law Commission confirming that trustees could consider a wide range of sustainability issues when making investment decisions.

Last week, the Law Commission published its final report on fiduciary duty after a consultation period. It concluded that the law did allow environmental, social and governance (ESG) factors to be taken into account, although it acknowledged that the current rules are “confusing and inaccessible”.

The report also noted that sustainable investment and the incorporation of ESG issues into the investment process can reduce risk, particularly in the long-term. It highlighted a range of practices, such as poor treatment of employees and environmental degradation, as being financially material risks to investors.

The UK Sustainable Investment and Finance Association (UKSIF) has now co-ordinated a letter signed by investors urging the government to take up the commission’s recommendations on ESG and stewardship issues. The letter, which has been sent to business secretary Vince Cable, also asks the government to consider statutory clarification.

Signatories of the letter include Alliance Trust, Schroder Investment Management, Impax Asset Management, Aviva Investors and WHEB Group.

The signatories state that as “responsible and long-term investors” they believe that creating an environment that facilitates ESG issues is important. In particular they support the recommendations that trustees should be required to state their policy on stewardship and that the Pensions Regulator and Financial Conduct Authority should provide rapid, accessible guidance in the area.

Simon Howard, UKSIF chief executive, said, “We live in a world where issues such as climate change, resource depletion and human rights practices are coming under increasing scrutiny.

It is therefore essential that the government gives absolute certainty to pension trustees that they can and should consider the full range of sustainable investment approaches necessary for the type of long-term decision-making that grows the value of beneficiaries’ assets.”

Recent research has found that pension savers also support long-term investment strategies and the incorporation of ethics. Almost half of respondents to a National Association of Pension Funds (NAPF) survey said they would accept lower returns if their pension provider avoided companies with unethical practices.

Howard added, “We believe that statuary clarification of some aspects of the law in line with the Law Commission’s views is still the most effective way to protect the public’s pensions and savings, and is a much stronger statement of the government’s commitment to long term investment.

“We therefore call upon Vince Cable and Steve Webb to consider statutory clarification to provide pension trustees with the greatest possible confidence the full range of investment approaches.”

Photo: danist07 via Freeimages

Further reading:

Investment trustees should consider ESG factors, concludes Law Commission

Fiduciary law ‘fit for purpose’ but investor knowledge needs to improve

Fiduciary duty: are your investments fit for the future?

Law Commission’s consultation on fiduciary duty closes

ShareAction calls for laws to encourage sustainable investment

Energy

Responsible Energy Investments Could Solve Retirement Funding Crisis

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Energy Investments
Shutterstock / By Sergey Nivens | https://www.shutterstock.com/g/nivens

Retiring baby-boomers are facing a retirement cliff, at the same time as mother nature unleashes her fury with devastating storms tied to the impact of global warming. There could be a unique solution to the challenges associated with climate change – investments in clean energy from retirement funds.

Financial savings play a very important role in everyone’s life and one must start planning for it as soon as possible. It’s shocking how quickly seniors can burn through their nest egg – leaving many wondering, “How long will my retirement savings last?”

Let’s take a closer look at how seniors can take baby steps on the path to retiring with dignity, while helping to clean up our environment.

Tip #1: Focus & Determination

Like in other work, it is very important to focus and be determined. If retirement is around the corner, then make sure to start putting some money away for retirement. No one can ever achieve anything without dedication and focus – whether it’s saving the planet, or saving for retirement.

Tip #2: Minimize Spending

One of the most important things that you need to do is to minimize your expenditures. Reducing consumption is good for the planet too!

Tip #3: Visualize Your Goal

You can achieve more if you have a clearly defined goal in life. This about how your money can be used to better the planet – imagine cleaner air, water and a healthier environment to leave to your grandchildren.

Investing in Clean Energy

One of the hottest and most popular industries for investment today is the energy market – the trading of energy commodities. Clean energy commodities are traded alongside dirty energy supplies. You might be surprised to learn that clean energy is becoming much more competitive.

With green biz becoming more popular, it is quickly becoming a powerful tool for diversified retirement investing.

The Future of Green Biz

As far as the future is concerned, energy businesses are going to continue getting bigger and better. There are many leading energy companies in the market that already have very high stock prices, yet people are continuing to investing in them.

Green initiatives are impacting every industry. Go Green campaigns are a PR staple of every modern brand. For the energy-sector in the US, solar energy investments are considered to be the most accessible form of clean energy investment. Though investing in any energy business comes with some risks, the demand for energy isn’t going anywhere.

In conclusion, if you want to start saving for your retirement, then clean energy stocks and commodity trading are some of the best options for wallets and the planet. Investing in clean energy products, like solar power, is a more long-term investment. It’s quite stable and comes with a significant profit margin. And it’s amazing for the planet!

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How to make a sustainable living out of Forex Trading?

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sustainable forex trading
Shutterstock Licensed Photo - By Robert Kneschke | https://www.shutterstock.com/g/robertkneschke

There are two different types of forex trading in general: the profitable one and the not so profitable one. Everyone wants good profits at the end of the day, but unfortunately a good number of traders are burdened with the huge losses at the end of their forex careers. Many newbies run the other way around when they hear about forex trading due to heavy losses in their initial period. Of course, you would have heard about all those success stories, in your friends’ circle or on the internet. However, if you are looking forward to replicate those success stories, you need get yourself ready before that.

In this article, we will discuss the six essential skills that are needed to earn some profits from trading foreign currencies and make a sustainable living out of it.

1. Limit your risk ceiling

When you start with forex, you should try to define limits. Try to create a balanced scorecard that defines your personality with regards to various parameters such as your strengths, weaknesses, behaviors, and ability to take risks. It is essential that you list your financial goals before you start with forex trading.

2. Learn about leverage ratio and account type

When you start, brokers will suggest different forex trading accounts that might take you for a whirl if you aren’t prepared. Each forex trading account has its own pros and cons. It is essential that you engage with your broker to create a mini trading account so that you will be able to warm up on your forex trading skills in a low risk environment.

3. Start small

While starting out, some investors rush to have multiple currency pairs without doing proper research on them beforehand. It is very important have you understand the nature and volatility of a currency before you start trading a pair. Every single foreign currency is like a market onto itself. It is therefore important that you take the time to study about the country before forming pairs to understand the volatility of the currency. By using forex trading platforms such as ETX Capital, you can take informed decisions easily.

4. Learn to control emotions

A forex trader should never take any decisions on the spur of the moment based on emotions and should be as rational as he can. Controlling your impulses is the key to becoming a great forex trader.

5. Automate your processes

I am not suggesting you to rely completely on forex robots and trade copiers, but make use of the latest automation tech to execute transactions faster than ever before. Make use of automation features such as stop loss, price options etc. to make the most out of the exciting opportunities.

6. Keep it simple.

Not everyone can be a genius economist, mathematician and a trader, bundled into one. Forex trading is not a complex subject, you only need to arm yourself with positive thinking, and set yourself clear and realistic goals.

Conclusion

I hope this article was useful for you to learn about the key reasons why online forex trading is a good investment and how you can earn money through it. If you have any doubts with regards to this, let us know through the comments and we will be glad to help you out. If you have any suggestions regarding how we can improve the article, let us know them through the comments as well for us to improve.

Though it’s a reliable source of income, you will have to educate yourself properly before you start investing. It is important that you take the time to understand why things are the way they are before you jump all in and start making your first big bucks. All the best for your future ventures and keep coming for more interesting and useful articles.

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