ESG Sustainable Investing Gold Coast

Sustainable Investing on the Gold Coast

Are you looking to grow your wealth by investing in companies that focus on ESG (Environmental, Social and Governance) criteria? Sustainable investing, also known as Socially Responsible Investing (SRI), is about investing in companies thinking ahead of the curve and focusing on the future and learning better ways of doing business. It’s the process of investing in companies that seek to fight environmental devastation and climate change while advocating corporate responsibility.

An ESG investment fund is one type of sustainable investment fund, where ESG factors are part of the investment decision-making process.

If you’re looking to invest in companies that share your values and priorities, turn to Centaur Financial; your local sustainable investment financial adviser on the Gold Coast.

“ESG-aligned managed funds outperformed in all Australian sectors for the three years to August 2020”. – Rainmaker Information

ESG Investment Funds Research Specialists

ESG investment funds research is something that we specialise in at Centaur Financial Services.

We do this by requesting each fund on our Approved Product List (APL) provide details of their ESG policy with attention paid to whether they are part of the Responsible Investment Association of Australasia (RIAA) and/or a signatory to the United Nations Principles of Responsible Investment (UNPRI), which is worlds leading proponent of responsible investment. UNPRI has outlined six principles for responsible investment. They are a voluntary and aspirational set of investment principles that work to develop a more sustainable global financial system.

Only the investment managers that at least meet the minimum screening standards can be adopted into our ethical investment models. Part of our role is to do the ongoing research to ensure that the investments you have are reflective of your values so we continually assess the available ESG managers in our investment universe.

Six Principles for Responsible Investment

The principles are:

  • Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.
  • Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.
  • Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.
  • Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.
  • Principle 5: We will work together to enhance our effectiveness in implementing the Principles.
  • Principle 6: We will each report on our activities and progress towards implementing the Principles.

Who is Sustainable Investing Suitable for?

Sustainable investing is an excellent option for anyone looking to have investments that positively impact society. Sustainable investing can be implemented through active managed funds, passive managed funds and ETF’s. Our ESG investment fund model is suitable for total portfolio allocation or allocation within a broader portfolio, with a suggested minimum investment of $50,000 over a minimum 7-year time frame.

If you are looking for investments that align with your personal preference for sustainable investing, while making a positive contribution to society, or you’re looking for a multi-asset growth-focused portfolio with both passive and active investment styles, sustainable investing is for you.

Centaurs' ESG Investment Fund Model

Our licensee ESG investment fund model has a strategic allocation of 90% to growth assets and 10% to defensive assets. It includes both Australian and international shares, implemented through active and passive management styles, listed property assets, and fixed income and cash. This ensures that you have a diversified investment portfolio representing a growth investment option over the medium to long term.

If sustainable investing piques your interest, and you want to invest ethically, get in touch with an expert sustainable investment funds investment adviser on the Gold Coast; Centaur Financial Services.

Understanding ESG Investing & ESG Investment Funds

ESG investment funds are a type of sustainable investment fund, where Environmental, Social and Governance factors have been incorporated into the investment process.

The ESG factors are outlined below:

Environmental Factors

  • Climate Change
  • Resource Use
  • Waste and Pollution
  • Ecological Footprint
  • Greenhouse Gas Emissions
  • Deforestation

Social Factors

  • Community Impact
  • Conflict
  • Employee Relations & Diversity
  • Labour Standards
  • Customer Responsibility
  • Health & Safety

Governance Factors

  • Shareholder Rights
  • Executive Pay
  • Donations
  • Board Diversity and Structure
  • Risk Management
  • Tax Transparency
  • Anti Corruption

Benefits of Investing in a Sustainable Investment Fund

While it’s great to build wealth and watch your portfolio reach new heights, it’s even better knowing your investment is going towards responsible and ethical companies. This is one of the biggest personal benefits of investing in a sustainable investment fund managed by Centaur Financial Services.

On a much larger scale, your choice to invest sustainably, means your making a stand against companies doing wrong; companies that promote tobacco and alcohol, gambling, pornography, high-impact fossil fuels, predatory lending, and armaments manufacture or distribution. As sustainable investing continues to grow, the snowball effect will force change.

“Companies that incorporate ESG risk management are better long-term custodians of investor capital, offer greater downside protection and can generate better long-term risk adjusted returns.”ftadviser.com

Sustainable Investment Fund Benefits

You're rewarding ethical companies
Major investment companies look to sustainable investing as the future
Sustainable funds are being launched at a record rate
Greater profitability and higher dividends are the results of a good sustainability rating
Companies with a good ESG rating usually have lower risk exposure
Sustainable investing helps to manage risk in uncertain times
Performance results speak for themselves

Frequently Asked Questions About Sustainable Investing

  • Why is ESG investing growing?

    Sustainable investing has shown significant growth over the past few years, and as ethical investment opportunities continue to grow, so too will its popularity. In 2019 alone, the number of funds rose from 2,045 to 2,405, and COVID-19 hasn’t slowed things down at all. In fact, according to Morningstar, a US financial services firm, 23 new sustainable funds were launched in the first half of 2020 with more to come.

    Australia & New Zealand Sustainable Fund and ETF launches

    Sustainable fund launches decade

    Sustainable / ESG investing has rapidly grown to accommodate investors’ demand, including more younger adults and women. Interesting, the GSIA 2016 Global Sustainable Investment states that three-quarters of Australian millennials say they prefer to invest in a responsible super fund than in a fund that only considers maximising financial returns. Moreover, a Vanguard survey revealed that women are more likely to expect their super or other investments to be invested responsibly and ethically (57% of women compared to 42% of men).

  • How is ESG rating calculated?

    Companies are given an ESG Rating based on their cumulating total ESG performance. There are many different ratings, including the Bloomberg ESG Data Service, DowJones Sustainability Index (DJSI), and Corporate Knights Global 100, which are out of 100, and the MSCI ESG Research, which is rated CCC, B, BB, BBB, A, AA, and AAA; worse to best). A company with a AA or AAA MSCI ESG Rating is regarded at the forefront of its industry, in regards to managing the most significant ESG risks and opportunities.

  • How can I invest in sustainably?

    Whether you are starting out as an investor or been doing it for years, there is value added through having professional management in using their skills and expertise to screen and filter through all the companies to choose the right ones to invest in. By using skilled investment managers, you will be able to ensure that your investments are invested in sustainable funds which are reflective of your ethical and responsible wishes.

    From there you would like to diversify across the major asset classes (Australian shares, International shares, Listed property, and Fixed Income) to ensure that you are not taking too much risk to achieve your investment goals. Typically, this can be done through a risk profile exercise.

    Once you have found sustainable funds and diversified appropriately, the next step is to ensure that you monitor the funds regularly to see that they are still reflective of your values and also that their performance is satisfactory.

  • Why should I look at sustainable investing as a strategy?

    Although sustainable investing isn’t for everyone, it does deserve consideration as part of your overall investment strategy for a couple of reasons, namely:

    1. More than half the wealth globally is being managed by some 1,700 signatories to the United Nations Principles of Responsible Investment (UNPRI). This means they are looking at ESG filters and screens as they make their investment decisions, so it makes sense you should too. One of the leaders in this is BlackRock CEO Larry Fink, who’s written a letter to clients outlining their belief that sustainability should be the new standard of investing.
    2. The growth in the number of sustainable / impact / responsible / ESG funds is growing at a record rate in both evidence of the growth and future continued growth in the desire for more investment options in this space.
    3. Performance of many of the sustainable investments has been in the top quartile relative to their peers who do not apply ESG filters which can lead to the assumption that the CEOs and businesses that are thinking about these issues are ahead of the curve in not just their sustainable investing thoughts, but also other areas of business.
    4. While the increased performance is nice, there is also a view that risk is better managed as the CEOs and businesses that manage sustainable risk seem to be better managed and look more so for quality style business, which can tend to be more profitable as well as resilient through market volatility.

See what our happy client's have to say about us!

If you are looking for a company that will go above and beyond to look after you and your money, you can do no better than Centaur Financial Services. Real People, Real Service and Real Returns.
Karen Hobbs
Karen Hobbs
07:26 24 Nov 20
Hugh has been our financial advisor for over ten years. We have always felt very comfortable and confident, trusting in Hugh’s knowledge and strategies in his industry. The Centaur team are friendly and efficient and would have no hesitation in recommending Centaur Financial Services to anyone looking for financial advice.
Pam Lindores
Pam Lindores
06:38 24 Nov 20
Hugh has always made us feel comfortable in every interaction we have had with him and his team, very professional but to a standard that we as non financial experts understand what he is talking about, we feel his advice to us has always made sense.
Peter Craig
Peter Craig
10:12 23 Nov 20
I have felt comfortable from the outset with all interactions with Hugh and the crew. It is nice to feel this way and I feel a rare experience in our current business climate.
Linda Leighton
Linda Leighton
10:03 23 Nov 20
Could not be happier with how our Super is being handled. Hugh and the pleasant girls at Palm Beach would literally bend over backwards for any of their clients.We would not hesitate to recommend Centaur Financial Services to anyone that is looking for a reliable and honest crew to look after their financial affairs.
Ronnie Foley
Ronnie Foley
05:30 07 Aug 20
I have found all members of Centaur staff to be unfailingly prompt, efficient and considerate. They have all seen me through some difficult personal issues and i would have no hesitation in recommending the firm to anyone in need of financial planning assistance or advice.
Ronald Black
Ronald Black
03:59 23 Jul 20
I have known Hugh for more than ten years and have always found him approachable, direct and very client centric. Hugh was a deserved winner of the 2018 AFA Adviser of the Year award, an award which eclipses all others in the advice profession. Hugh and his team at Centaur support many Australian families on their financial journey with advice that provides certainty and peace of mind.
Marshall Brentnall
Marshall Brentnall
23:05 30 Oct 19

Looking for Sustainable Investments on the Gold Coast?

Turn to Centaur Financial Services, your expert Sustainable Investment Funds adviser

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