Ethical Investing Case Study - James and Lily

Ethical Investing Case Study

James and Lily are a couple in their thirties. They own their own home, do not have a mortgage and do not have any children. Lily inherited a large sum of capital and consequently asked us to design an ethical investment portfolio for them to invest in. They were keen to avoid investing in companies that generate the majority of their revenue from any of the “sin sectors” (alcohol, tobacco, gambling, pornography and armaments). They wanted the capital to be invested for capital growth over the long-term and for the investment portfolio we designed to be in line with their attitude to risk and capacity for loss.

> JAMES AND LILY

In our free initial meeting we discussed James and Lily’s investment goals and investment time scales. In addition, they completed risk questionnaires so we could ascertain their attitudes to risk and capacity for loss in order to ensure the portfolio we designed was appropriate for them We also worked through a fact find with James and Lily so we had a thorough understanding of their financial circumstances.

> INVESTMENT STRATEGY

We designed an ethical portfolio for James and Lily according to their criteria and invested the capital on their behalf in two stocks and share ISA accounts, one for each of them, (using their annual ISA allowances) and a joint general investment account. All of the accounts were placed on the same investment platform and linked, so James and Lily can log in online and look at their portfolios.

> DETAILED REPORT

We presented our proposal to James and Lily in a detailed report. In the report we included information on the past performance of the investments we were recommending, the ethical screening of the investments we were recommending, the strengths and weakness of our proposed approach, information on the different types of tax wrappers we suggested and most importantly a detailed breakdown of all of the costs involved in implementing our proposal.

James and Lily chose to proceed with our advice and having set up their investments we now manage them on an ongoing basis. This not only means watching over the performance of the individual investment funds within their ethical portfolio but also importantly rebalancing their portfolio regularly in order to ensure it stays in line with their attitude to risk and capacity for loss. In addition, every tax year we transfer capital from their joint general investment account into their individual ISA accounts.

> ETHICAL INVESTING CASE STUDY

Click here for more information about Ethical Investing »

Disclaimer: these case studies are based on real cases but the names and exact circumstances have been changed for client confidentiality. They provide examples of the service we have offered previous clients and may not be suitable for you. Please speak to one of our advisers should you want guidance in any of these areas.

Navigation