An­gelique Ruz­icka of­fers ad­vice for in­vest­ing in green com­pa­nies or funds that em­brace pru­dent ESG prin­ci­ples

CityPress - - Business -

4Sharia funds are in­vest­ments governed by guide­lines un­der Is­lamic law. Ac­cord­ing to sharia law, non-per­mis­si­ble in­vest­ments in­clude those made into busi­nesses which of­fer in­ter­est­based money-lend­ing trans­ac­tions; con­ven­tional in­sur­ance; em­bry­onic or stem cell re­search and cloning; gam­bling; non-ha­laal meat; and night­clubs.

These val­ues may be in line with your own, and the good news is that you gen­er­ally do not have to be Mus­lim to in­vest in these funds.

5CONSIDER AL­TER­NA­TIVE IN­VEST­MENTS Some re­new­able en­ergy com­pa­nies may not be listed on the JSE, so in­vest­ing in them could prove dif­fi­cult. If you have the col­lat­eral, you could con­sider al­ter­na­tive in­vest­ment funds.

So, should you let your be­liefs guide your in­vest­ment de­ci­sions?

Maguire says that, be­sides re­duc­ing your risk, in­vestors should look at im­pact in­vest­ing be­cause they can im­prove per­for­mance and have be­come more so­cially ac­cept­able. “In­ter­na­tional share price ex­pe­ri­ence shows us that firms that have the best so­cial and en­vi­ron­men­tal gov­er­nance prac­tices also tend to man­age their busi­nesses best, man­age their work­force bet­ter and out­per­form other less re­spon­sive firms,” he adds.

ESG val­ues will be some­thing that will need to be em­braced in the fu­ture, par­tic­u­larly con­sid­er­ing the fact that we live in a coun­try where wa­ter is scarce, elec­tric­ity is un­re­li­able and cli­mate change is real. “In an en­vi­ron­ment where the in­vestor can get a com­pet­i­tive re­turn while also do­ing good, the so­cial ac­cept­abil­ity of in­vest­ing solely for re­turns is rapidly dry­ing up,” says Maguire.

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