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Socially Responsible Investing with Netwealth

Combining ethically focused investments with our high-quality sterling portfolios

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What is Socially Responsible Investing?

Socially responsible investing (SRI) is an approach that combines financial returns with positive social and environmental impacts. This investment strategy focuses on socially responsible investments – such as companies with sustainable practices and high environmental, social, and governance (ESG) scores – while excluding those with harmful business practices.

Essentially, socially responsible investors aim to achieve their financial goals while contributing to positive change. And we're here to help you do just that.

Why do it?

  • Support companies committed to sustainability and social responsibility
  • Contribute to positive environmental and social impact
  • Invest in companies with long-term, sustainable business models
  • Achieve financial returns without compromising ethical principles
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The Netwealth approach to SRI

Netwealth’s SRI portfolios focus on what matters for today’s investor: high-quality, globally diversified investments that are also cost-effective.

At the same time, we prioritise companies with strong environmental, social, and governance (ESG) ratings, while reducing exposure to those that don't meet these standards. This approach offers a powerful mix of ethics, quality and efficiency, giving you a socially responsible investment option without compromising on performance.

Learn more about our investment approach

How is our SRI different to our Core portfolios?

Our goal is to keep the performance of our SRI portfolios as close as possible to our Core portfolios while making responsible investment choices. We focus on excluding companies that have the most harmful social or environmental impact, particularly those contributing to climate change, and increasing exposure to companies with the highest sustainability ratings.

To achieve this, we invest in ETFs that follow the MSCI Socially Responsible Investing indices. These indices exclude certain companies and focus on the top 25% of the market based on sustainability.

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Netwealth offers advice restricted solely to our services. We do not consider the whole of the market, nor offer advice in relation to tax compliance, insurance products, or the transfer of defined benefit pensions.

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Where profitable investment meets social responsibility

Transparent, ethical investment

Our socially responsible investments let you align your financial goals with your values. We ensure transparency in our investment process, selecting companies with strong ESG ratings. By using negative screening and focusing on positive impact, we exclude harmful practices and emphasise corporate social responsibility.

Tailored SRI portfolios

We offer tailored socially responsible investment (SRI) portfolios, using ETFs that target the top 25% of socially responsible companies, we ensure your investments meet strong ESG standards.

Award-winning management

Our expert portfolio managers at Netwealth balance financial performance with ethical values. Through a rigorous positive screening, we select companies committed to sustainability and corporate social responsibility.

Manage your own SRI portfolio with advanced financial tools

Our online wealth service makes investment analysis easy to plan and manage your personal and financial goals. You can explore various investment strategies, track your progress and choose socially responsible investments.

By modelling different options, you can visualise potential financial returns while incorporating ethical considerations. This ensures your responsible investments support both your financial performance and positive social impact.

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How SRI is supported by the Netwealth Network

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Our socially responsible investment offering is enhanced through the Netwealth Network. This enables families and close groups to pool assets while maintaining individual investment portfolios focused on ethical goals. By reducing fees through the Network, you can allocate more resources to your sustainable investing strategy, ensuring long-term financial performance.

This collaborative structure supports responsible investing by aligning portfolios with values that promote community investing and ethical business practices, benefiting future generations while contributing to meaningful positive impact.

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When investing your capital is at risk.

Netwealth SRI FAQs

We believe for clients seeking a socially responsible approach it’s key to exclude those companies with the most negative social or environmental impact, and enhance exposure to stocks which score best on the same criteria. Explicitly, we aim to filter out the types of companies with the most negative current impact on climate change due to carbon emissions.

For this reason, our SRI portfolios invest consistently in exchange traded funds (ETFs) aligned with the MSCI Socially Responsible Investing family of indices, which have a number of exclusions and target the best 25% of the broader market capitalisation of their respective 'parent' indices.

In a nutshell, the SRI portfolios are designed to be consistent with our existing approach, but with an added SRI and climate filter.

The ETFs we include in our SRI portfolios track the performance of indices which are adapted from so-called ‘parent’ indices. These parent indices are usually unfiltered baskets of investments from a region or sector, weighted primarily by their value, and reflecting few, if any qualitative exclusions or exemptions. From this starting point, SRI indices are usually subsets of the parents with the most unsuitable stocks or bonds excluded, and more socially beneficial assets amplified in weight.

We are focused on providing high quality, globally diversified portfolios that are transparent in their holdings. You can find full details of each risk level's current holdings, along with historic characteristics and forward-looking projected returns in our modelling tools.

The minimum amount to open a Netwealth account is £50,000. This is across all account types.

At Netwealth, we feel strongly that investors should be able to choose to reflect their ethical considerations without compromising on the calibre of an investment proposition. Likewise, many clients and potential investors have asked us about our views on socially responsible investing and sought our solution.

The Netwealth approach is consistent across all our portfolio ranges, and this applies to the SRI portfolios too. All direct costs of investing in SRI portfolios are the same as for core portfolios. However, the indirect costs of investing are expected to be slightly higher due to different instruments held. A key consideration in our instrument selection process is always to maintain efficiency, by reducing direct and indirect costs by selecting attractively priced and liquid strategies. Pleasingly, the costs of investing have been falling in recent years.

The total costs of investing with Netwealth are shown here.

You can choose to invest responsibly in any, or a combination, of our accounts depending on what is right for your investment goals. Choose from: General Investment, Pension, ISA and JISA. Speak with the team to find out which is best for you or email them at contact@netwealth.com.

No, at this time we only offer our SRI portfolios in sterling.

Insights

I have been very impressed by the Netwealth service. It gives me greater transparency and at considerably lower fees than traditional providers, as well as the comfort of knowing that my SIPP funds are being professionally managed, with access to advisers if I need it.

Justin Rushbrooke

QC

The Netwealth service has provided me with financial peace of mind, with its very low charges and user-friendly access to my account. I am extremely pleased with the switch.

Ina Machen

RETIRED NURSE