How It Works

What Does Socially Responsible Investing Mean at Ethical Funds?



Ethical Funds Brochure

For Ethical Funds, socially responsible investing is about marrying traditional financial analysis with environmental, social, and governance (ESG) analysis during investment decision-making. They believe companies that combine strong financial performance and ESG practices have the greatest potential to deliver returns over the long term.

Financial Analysis

They begin with top independent managers focused on performance and risk management. They conduct financial analysis to evaluate corporations: how a company fares in terms of profitability, solvency, liquidity and stability.

Environmental, Social, and Governance Analysis

They then leverage environmental, social, and governance analysis, using a proprietary evaluation process that focuses on identifying less quantifiable risks not reflected in financial statements and often overlooked by traditional financial analysis.

Portfolio Construction

Companies that have passed both financial and environmental, social, and governance analysis criteria and have satisfied the fund’s mandate are then selected to be included in Ethical Funds.

Quote of the Month

“Do I not destroy my enemies when I make them my friends?”
– Abraham Lincoln