What is ESG Investing?

ESG is an abbreviation that means Environment, Society, Governance. ESG investing combiles these non-financial factors are now becoming a trend, and investors analyze these factors as a part of their research process to identify the right investment opportunities aimed to make a world a better place. Moreover, today’s investors prefer to avoid investing in alcohol companies, tobacco manufacturers, coal mining and weapon manufacturing companies, and others who may be or is involved in environmentally-unfriendly industries or in bribery, corruption, money laundering.

Human rights, child or forced labor, air and water pollution control, carbon emissions and energy consumption are also a part of research to identify ESG investment products. ESG Investing is also known as Sustainable investing and Socially-Responsible Investing.

ESG Key Factors is included in the graph below:

ESG investing

On top of that, company culture, freedom of association, consideration of people and relationship, data protection and privacy, board composition, audit committee structure and business ethics can be also considered as factors for particular research. Such assessment is required to to identify the right ESG investment options that match or exceed investor’s expectations.

ESG Investing becomes a trend

Covid-19 pandemic has significantly accelerated ESG transformation of global corporations and top-tier financial institutions, including wealth management companies, mutual funds, banks, electronics manufacturers and even cryptocurrency mining companies. Most of key industry players already provide ESG investment products as they are highly demanded by retail and institutional investors. The idea of investing in a better world becomes more important than performance or growth potential, and wise investors put the future of next generations on the first place. The world changes and so do investors’ objectives and motivations.

ESG investing in numbers

Most important ESG factors

According to TD Ameritrade Report, rate of return and past performance of the investment have almost equal value to social and environmental impact. The online survey was conducted with over 1,000 investors with at least $250,000 in investable assets.

The appetite to ESG Funds is growing from all age groups, especially from millennials, who are mostly looking to choose the investment products that provide additional value to returns. Moreover, ESG investing factors are becoming increasingly critical for portfolio managers and offshore investment funds.

Another factor of ESG investing acceleration is an extremely high concentration of assets among leading asset management companies. 34% of total external assets under management are managed by TOP-10 key players of the market.

Thirdly, retirement investment funds and pension funds are also looking at ESG investment products with more attention. Such investment products are strived to save the nature and animals, and can’t be ignored when the fund is aimed to ensure investors a happy and hassle-free life after retirement. Learn more about The Rise of ESG Investing.

Why choose ESG investing with Einvestment?

Einvestment is an offshore investment platform powered by Cayman Islands-domiciled mutual fund. The Fund’s investment offerings include two segregated investment portfolios for allocation of funds. The platform enables investors to set up offshore investment account online and benefit from quick, secure, immediate and totally paperless investing experience. The fund’s top investment option has generated over 316% Total Return since it’s inception on February 13th, 2019. Portfolio managers at Einvestment are also very concerned about environmental and problems, human rights, climate change, as well as wealth and racial inequality. If you are looking to invest in mutual funds for monthly income, Einvestment also suits your investment objectives.

Einvestment and ESG investment products

Wealth managers of ESG Funds pick the right assets as a result of deep research and assessment process aimed to avoid investing in toxic companies that are not compliant with common ESG standards. In addition to above mentioned benefits, Einvestment provides long-term investment opportunities to deliver tax-efficient solutions strived to maximize your return and reduce the risks by allocating your savings to a broad range of asset classes, industries, countries and currencies.

Special conditions for retirees

If you have already retired and looking to invest after retirement you are eligible to invest with reduced performance fee of just 15% with a minimum investment of 10,000 Euros or more. Learn more about the Fund’s retirement investment options. With Einvestment, you can supercharge your retirement portfolio and power additional monthly to cover your regular needs.

No annual and account-keeping fees

Einvestment doesn’t charge any annual account-keeping fees or subscription fee that is usually charged by most of mutual funds for subscription to investment products.

Broad coverage – built for international investors

The Fund’s selection of cost-efficient, tax-efficient and income-producing investment products are available to to international clients from Europe, Asia, Middle East, Australia and New Zealand.

Monthly distributions

By allocating your savings to Einvestment, you allocate the funds to the most cutting-edge companies with strong growth potential within short-to-medium time horizon alongside with monthly income distributions.

Redemptions

Einvestment charges just 2.99% redemption fee in case you need immediate access to invested funds due to emergency or any other expected or unexpected reasons. Redemptions are processed on Mondays excluding local public holidays.

Low investment minimums

Quick and paperless access to investment products alongside with low investment minimum of just 1,000 Euros – the accessibility highlights of Einvestment mutual fund platform.

High portfolio turnover rate

Portfolio managers regularly rebalance the assets in actively-managed investment portfolios to ensure the right balance between total return and high level of current income and bring investor’s to their financial goals.

Conclusion – is it worth investing with ESG funds?

Aside from helping to to fight environmental, social and governance issues, ESG investment strategy can also offer higher returns as we may see from performance of large number of EST-enabled investment offerings. Many ESG indexes and funds have already outperformed the classic indexes, and these shares will continue rebalancing. ESG Funds have strong growth potential for the next 5 to 10 years, especially in post-pandemic period. It’s worth to start migrating your savings to ESG investment products and invest to make a world a better place. Invest in a better world today with Einvestment.