Sussexes join US ethical investor with big stakes in social media firms
THE Duke and Duchess of Sussex have said they are putting their “values into action” by becoming “impact partners” with an asset management company which has invested in social media giants Facebook and Twitter.
The Sussexes have put money into New York-based company Ethic, which helps customers direct their finances towards companies “that treat people and the planet with respect”.
The Duke and Duchess have previously campaigned against the dark side of social media, working alongside campaign group Stop Hate for Profit and lobbying major corporations to withdraw advertising spending from “lawless” social media companies
Last year, the Duke wrote a 1,400word column in which he said the cost of using social media was “very high”, with personal data traded for profit in a “relatively lawless space”.
Yesterday, the couple announced they had invested in Ethic, a fintech asset manager, saying they “want to rethink the nature of investing to help solve the global issues we all face”. “We believe it’s time for more people to have a seat at the table when decisions are made that impact everyone,” they said. “This is one of the ways we put our values in action.”
Ethic has $6.9million (£5million) invested in Facebook shares, making it the company’s 13th biggest investment, according to a recent US filing. It also has a
$32 million stake in Alphabet, the parent company of Youtubeowner Google, and a
$2 million investment in Twitter.
Investing their own money through Ethic could mean the couple owning stakes in the tech giants, although the company does allow investors to build personalised investment portfolios that can opt out of owning certain companies or sectors. Ethic has $1.3billion under management. In an interview with the New York Times announcing their new deal, the Sussexes highlighted the difference between their own upbringings. The Duchess said: “From the world I come from, you don’t talk about investing, right? You don’t have the luxury to invest. That sounds so fancy.”
She added: “My husband has been saying for years, ‘Gosh, don’t you wish there was a place where if your values were aligned like this, you could put your money to that same sort of thing?’” The Duke said: “You already have the younger generation voting with their dollars and their pounds, you know, all over the world when it comes to brands they select and choose from.”
The Duke, the Queen’s grandson, and the Duchess left the working Royal family in January 2020, and are pursuing financial independence in California. The couple are said to hope that their involvement in Ethic “would help democratise investing, making people – especially younger people – more deliberate in their choices and conscious of investing in sustainable companies”. Announcing the new partnership, Ethic founders said: “They’re deeply committed to helping address the defining issues of our time – such as climate, gender equity, health, racial justice, human rights, and strengthening democracy – and understand that these issues are inherently interconnected,” they said. “So much so, in fact, they became investors in Ethic earlier this year and have investments managed by Ethic as well.”
Theo Osborne’s venture capital fund, 9Yards Capital, where his brother and former chancellor George Osborne is also a partner, has invested in Ethic. Ethic, founded in 2015, is selfdescribed as a “diverse team” which “helps wealth advisers demystify the world of sustainable investing”. Its “chief smile officer”, Byron, is a dog.