The view that says financial performance must be sacrificed if you consider sustainability when investing is “finally withering away”, according to Joe Keefe, president and CEO of US-based Pax World Management.
Keefe said that while it has taken time, many institutional investors – such as foundations, endowments and pensions funds – that were either not interested in or committed to sustainable investment, are beginning to be interested.
“The old canard, demonstrably false, that sustainable investing requires that one sacrifice financial performance, is finally withering away”, he added.
“At the same time, there are certain emerging demographics, like women and younger investors, who are much more interested in aligning their investments with their values and are therefore accelerating interest in and demand for sustainable investing strategies.”
Speaking to Blue & Green Tomorrow after the launch of the Pax MSCI International ESG Index fund, Keefe explained that environmental, social and governance (ESG) factors were becoming increasingly relevant to companies’ long-term financial risk and performance.
He said that firms that acknowledge this not only have greater positive impacts on the economy and society, but are also better long-term investments. This includes companies working to confront issues like climate change, gender equality, access to education and water shortages.
“We want to invest in those companies and we want our shareholders to benefit from their vision and their success”, Keefe added.
“Sustainable investing gives investors the opportunity to align their investments with their values while promoting positive social and environmental outcomes in capital markets.”
The company’s newest fund, launched at the end of March, is the 11th offered by Pax World – whose assets under management now exceed $3.3 billion (£1.96 billion). The company launched the first socially responsible mutual fund in the US in 1971, and applies ESG filters to all of its investments.
The Pax MSCI International ESG Index fund will invest exclusively in the MSCI EAFE ESG Index, which covers companies in Europe, Australasia and the Far East, and the minimum investment for individual investors is $1,000. To invest in a US-based fund, individuals from outside the US need a US brokerage account.
Keefe described Pax’s new fund as “an attractive option for sustainable or ESG-oriented investors who want exposure to international developed markets in their portfolios”.
Meanwhile, speaking about the future of sustainable investment, he added, “There is no question that growth capitalism must give way to sustainable capitalism. It’s as simple, and as urgent, as that.
“Over the next 20 years, the sustainable investing industry must play a pivotal leadership role in ushering in this historic transformation. We can also help investors profit from this transformation.
“I think people will increasingly demand that their money be invested in a way that produces positive outcomes rather than problematic ones. And I think they will increasingly realise that sustainable investing is actually a smarter way to invest over the long-term.”
In accordance with the Financial Services and Markets Act 2000, Blue & Green Communications Limited does not provide regulated investment services of any kind, and is not authorised to do so. Nothing in this article and all parts herein constitute or should be deemed to constitute advice, recommendation, or invitation or inducement to buy, sell, subscribe for or underwrite any investment of any kind. Any specific investment-related queries or concerns should be directed to a fully qualified financial adviser.
Responsible Energy Investments Could Solve Retirement Funding Crisis
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 your retirement savings will 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!
How to make a sustainable living out of Forex Trading?
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.
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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