avc ethical fund advice

H

hansgru

Registered User
Messages
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Hi,
Some advice on the following would be greatly appreciated.
Scenario:
AVC investment agreed upon with a range of funds to choose from.
Not too happy with the fund choices and wondered if anyone has found themselves in a similar situation.

- I want to go the ethical investment route and while I am fully aware that what constitutes ethical is quite subjective, I am hoping someone has encountered a fund that actively selects shares in responsible companies as opposed to simply omitting companies perceived as negative (e.g. tobacco and arms). I have come across a few of the latter where oil is included and I don't want to invest in that.

- If no such fund exists, are there investment options other than funds for the avc amount until maturity?

Thanks,
 
Hi Hansgru,

I've been considering this quite a bit lately......terrible thing, conscience!

As you point out, when you get down and dirty, it gets pretty subjective.

To get ball rolling and to tease out what would and would not be acceptable to you, I think it would be very useful to consider the top ten stocks in the ISEQ and for you to comment on why you think each particular stock is investment worthy or not by your personal ethical compass. Ideally, a very brief explanation of your rationale would be very helpful.

By market cap, the stocks are:
CRH, Ryanair, Kerry, Paddy Power, BOI, Smurfit, Glanbia, Kingspan, Arzyta and Permanent TSB
 
Hi Brendan,

Sorry - but can't find it via search?

Would you mind providing the link please?
 
Thanks for the advice so far and to Brendan for the link to the very comprehensive post from some years back. I started to look into some of the companies in the Cantor Fitzgerald (formerly Dolmen) "Green Effects" fund. A can of worms when you compare a stated company ethos with some of the comments from staff.
I will continue with the search but may move away from investing in a fund at all. What alternatives do I have when it comes to an avc?
 
Friends First have the Stewardship fund which is an ethical fund.

New Ireland have an ethical equity and ethical managed fund.

Aviva had the SRI range (socially responsible investments) but they seem to have been closed.

If you are investing in an AVC, you will be tied to the funds offered by the scheme that you are a member of. The alternative is setting up a PRSA AVC. A standard PRSA has a limited fund choice which may not include ethical funds so you may have to implement a non-standard PRSA AVC.


Steven
www.bluewaterfp.ie
 
Thanks Steven.
I have started looking into the funds you mentioned.
I wonder if someone could set me straight on the PRSA AVC option. If one opts for a PRSA, is it necessary to choose a fund or is it possible to have the money on deposit and invest it as one sees fit. I presume the answer is no and that AVCs must be bound to a managed fund.
 
You can choose a cash fund and then do a switch into the fund as you wish. You'd want to check out how many fund switches your provider will allow each year for free. There may be a charge.


Steven
www.bluewaterfp.ie
 
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