Friday 23 March 2012

Offshore investment the Ethical Way

For some investors, it’s very important to ensure that the offshore investments being made on their behalf are ethical. Low risk investments like high growth timber investments are good for investors and the environment.




Every investor is different. Their goals are different, they have different amounts to invest and they choose to invest in different things. For some, the nature of the fund and the way it operates is just as important as the potential returns.

Why choose ethical offshore investments?

Offshore investments, by their nature, are managed from a wide range of countries around the world. Regulation of financial products, including the areas in which they invest, varies from country to country. Whilst many investors are happy to choose the fund that fits in with their financial plans, others want to be sure that they are comfortable with the sectors the fund invests in, and how the fund itself is managed.

How do I find out if my offshore fund is ethically-run?

Before you commit to any offshore fund, ask your advisor some key questions. These will help you to determine whether the fund meets your ethical requirements. Questions could include:

  • What sector(s) does this fund invest in?
  • Is the financial reporting clear and open?
  • Does the fund comply with any specific environmental regulation?
  • Are investors made fully aware of all the risks?
  • Is the fund likely to invest in unethical sectors in the future?

Your financial advisor will be able to help with these questions so that you can decide whether or not you want to continue with the investment.

What counts as an unethical investment?

Whether an investment is unethical or not is largely down to your own personal opinion. Examples of investments that are commonly seen as unethical are:

  • Arms manufacture or supply
  • Animal testing
  • Pornography
  • Tobacco
  • Nuclear power
  • Human embryo research
  • Exploitation of developing countries
You can talk your concerns through with your advisor, who will be able to add notes to your records to show that you do not want to be associated with certain types of investment, offshore or otherwise. You can also specify the types of investment that you would like to be involved with.

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