After Simon Jones and his wife Anna sold their business, they were keen to plan their financial future through the aid of ethical investments. They came to Heron House because they were becoming increasingly frustrated with their existing adviser who would not fully engage in their ethical requirements and offered a model ethical portfolio that could not be tailored to their exact needs.
When constructing the ethical portfolio for the Jones’, we had to first establish whether they were negative or positive ethical investors. This meant finding out if their investment aspirations were based on avoiding particular sectors (such as armaments and tobacco) or choosing to make a positive contribution by investing in particular areas (such as healthcare and water). To construct the portfolio we used some of our existing preferred ethical funds, but we also carried out further research so that the final portfolio represented all of the Jones’ needs and objectives.
An example of the further research undertaken was to find funds that promoted UK job creation within the manufacturing sector. The business the Jones’ previously owned was within this sector and so it was a priority for them to continue to support it.
The Jones’ were also pleased to learn that an ethical portfolio does not necessarily mean a reduction in performance. Through thorough research and well thought out asset allocation, our ethical portfolios, as well as our standard client portfolios, are designed to produce healthy returns over the medium to long term.