EBI & ESG Investing
EBI & ESG Investing
“Evidence Based Investing is an approach that is based on research, observing markets and how they work, and using data to make considered investment decisions.”
What Is Evidence Based Investing?
In the most simplistic of terms Evidence Based Investing is on the opposite side to the more widely known – and more volatile – Active Investing.
An evidence based approach uses passive investment management, mimicking an index of market returns. Passive investing seeks to minimise costs by limiting the number of trades performed. This is known as strategic asset allocation, where investors set target allocations for various asset classes based on criteria such as the investor’s risk tolerance and investment objectives.
The evidence employed is the product of many decades of independent, peer-reviewed research and analysis by some of the world’s leading academics, including numerous Nobel laureates.
This contrasts with an active management approach where the manager undertakes specific investments with the goal of out-performing a target return, or ‘beating the market’. This is known as tactical asset allocation.
Markets are notoriously hard to beat in the long term and this is why Evidence Based Investing sits at the heart of our investment philosophy.
What is ESG Investing?
ESG (Environmental, Social & Governance) is a responsible investing strategy that seeks both financial return & positive social change.
Investors are now seeking to put their money where their mouth is, by expressing their values and aspirations via their investing. Your home, your car, the clothes you wear… they all speak to who you are as a person.
Why should your investments be any different? Having your hard-earned money work in a way that reflects what you value is not a case of trading returns for principles.
ESG investing is now firmly entering the mainstream, and companies are being forced to adapt their operations to address these concerns from investors who, in case we have forgotten, are the owners of those firms
The three pillars of Environmental, Social & Governance combine to define what most people would categorise as good business practice.
Within our suite of Earth Portfolios, we use screened funds to control certain exposures based on criteria such as business sectors, vice products or controversial weapons manufacture, for example, or companies that participate in environmentally damaging activities.
The finance sector has an important influence on companies and their sustainability credentials and we believe that the stewardship of investment managers will help drive long term sustainability change.
Can We Help You Live YOUR Best Life?
We would be delighted to meet with you to see how we may be able to help in achieving your financial and lifestyle aspirations. We will not engage with clients unless we are certain that we can add significant value. In this respect all initial meetings are always at our expense and no fees are ever charged until all parties are agreeable to working together.
Glennan Wealth Management
114 Wellington Street,
Tel: 0113 388 4885
Fax: 0333 344 9425
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Glennan Wealth Management is authorized and regulated by the Financial Conduct Authority. FCA Number 599267 | Registered Address: PO Box B30, 35 Westgate, Huddersfield, West Yorkshire HD1 1PA. Company Number 08416853.