We’re excited to add more investment options to Sharesies! We’ve teamed up with Pathfinder Asset Management to launch two new sustainable investment options: The Pathfinder Global Responsibility Fund, and the Pathfinder Global Water Fund.
It’s the first time the Global Responsibility fund has been available to the general public. Managed funds usually have a $5,000 buy-in, through Sharesies people will have access to these funds with $5.
(Since this post was written, there is no longer a $5 minimum investment. You can invest as much, or as little as you can afford. Our post on fractional shares explains it all.)
This is something that our customers are asking for, and trend that is growing worldwide.
What exactly are socially responsible investments?
Also known as ethical, impact, and responsible investing— socially responsible investing takes into account both financial return and social good, by avoiding companies that cause harm to individuals, society or the planet.
Before companies are included in the fund they go through a three step screening process:
Screening company activities and revenue sources—to avoid companies that get significant revenues from armaments, gambling, tobacco, thermal coal and pornography.
Rating companies and their current level of “controversy”—for example current environmental issues and product recalls. Poor performers can be excluded.
Scoring companies on environmental, social and governance (ESG) criteria.
The research for these three steps is undertaken independently by Sustainalytics, a leading global provider of ESG and corporate governance research and ratings.
What’s included in the funds?
The Pathfinder Global Responsibility Fund—includes socially responsible companies around the world. This means excluding companies involved in restricted industries such as gambling, tobacco, controversial weapons and thermal coal. And selecting the companies that have the highest Environmental, Social and Governance (ESG) score.
The Pathfinder Global Water Fund—includes socially responsible companies around the world involved in the water industry. Water companies cover a wide range of activities including water treatment, pipe and pump manufacturing and specialist engineering— there are no bottled water companies in the water fund.
These are managed funds—this means you don’t own shares in one particular company, but in units in a fund that is made up a group of companies. This helps keep your portfolio diversified— so you don’t have all your money riding on one company.
To invest in these funds go to Sharesies and either create an account or login.
Happy investing 🎉