Ethical Investing

Yunita Ong wrote a piece for The Sunday Times titled “World of Values Investor”. (20 May 2012) She reported that ethical investing is on the rise worldwide. This can mean excluding companies that may deal in arms or involved in gambling, alcohol or other “sins”.

I have gone done that path since last year. I deliberately sold off my holdings in ST Engineering in March 2011 even though this company still offers good dividends and potential for growth. I did not cover this counter in my analysis report as well. The reason is that part of ST Engineering group develops weapons for armies for world market.

I had sold off Fraser & Neave in 2010 and continue to avoid this counter for reason that it is a major shareholder of Asia Pacific Breweries, the breweries that bring you Tiger Beer, Heineken, etc.

I avoided Genting Singapore, the one that has a casino at Resort World Sentosa. Besides ignoring shares of Genting, I did not even care to take a look at the perpetual securities issued by Genting.

In ethical investing, investors are supporting companies that strive to make a positive social impact such as the environment and still make profits from these ventures. Two such companies in my portfolio include K-Green Trust and Hyflux. K-Green Trust invests in “green” infrastructure assets (such as waste management, water and wastewater treatment, renewal energy, energy efficiency and other “green” initiatives).  Hyflux is big in water recycling and desalination.

Copyright © 2012, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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