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Ethical investment screening75479As changes in global politics and the economy make financial returns more elusive, and moral and ethical considerations rise in popularity, ethical screening is an established investment strategy.Ethical screening is a way investors can do social good, whilst gaining financial returns. As changes in global politics and the economy make financial returns more elusive, and moral and ethical considerations rise in popularity, ethical screening is an established investment strategy. Our expert, David Smith, Business Development Manager of Asset Management, explains how ethical investments moved from niche to mainstream.2017-06-29T14:00:00Z<p style="color&#58;#848780;font-family&#58;&quot;segoe ui semilight&quot;, sans-serif;font-size&#58;14px;box-sizing&#58;border-box;background-color&#58;#ffffff;"> <span class="ms-rteStyle-Body" style="color&#58;#403f3f;font-family&#58;calibri;font-size&#58;16px;box-sizing&#58;border-box;"> <img id="imgContent" src="/News/PublishingImages/Pages/Ethical_investments-news.jpg" alt="" style="margin&#58;5px;" /> <br></span></p><p style="font-family&#58;&quot;segoe ui semilight&quot;, sans-serif;font-size&#58;14px;box-sizing&#58;border-box;"> <span class="ms-rteStyle-Heading5" style="font-family&#58;calibri;font-size&#58;16px;box-sizing&#58;border-box;"> <br></span></p><p style="font-family&#58;&quot;segoe ui semilight&quot;, sans-serif;font-size&#58;14px;box-sizing&#58;border-box;"> <br> </p><div> <strong id="newsIntro" style="color&#58;#000000;font-family&#58;montserrat;font-size&#58;18px;">As changes in global politics and the economy make financial returns more elusive, and moral and ethical considerations rise in popularity, ethical screening is an established investment strategy. Not only can investors do social good with ethical investment screening, but they can also enjoy sound financial returns. David Smith, our Business Development Manager, explains how ethical investments moved from niche to mainstream.</strong><br></div><div> <br class="ms-rteStyle-Body"> </div><div> <span class="ms-rteStyle-Heading3">What is ethical screening?&#160;</span></div><div> <span class="ms-rteStyle-Body"> <br></span></div><div> <span class="ms-rteStyle-Body">Ethical screening is the process investment companies use to determine where to invest by checking investments against certain moral standards and either selecting or removing them based on whether they are good or bad stewards of the world. Negative screening is the exclusion of investments deemed to be undesirable. Positive screening actively favours investments expected to benefit people, equality, or the environment. For example, companies with sound corporate governance, environmental or labour policies.</span></div><div> <br class="ms-rteStyle-Body"> </div><div> <span class="ms-rteStyle-Heading3">Why look for ethical investments?</span></div><div> <span class="ms-rteStyle-Body"> <br></span></div><div> <span class="ms-rteStyle-Body">An ethical investment strategy considers what your money is funding, and in some cases, not funding. It has a direct impact on people and the planet and can put pressure on companies with a poor record on issues such as child labour, the environment or human rights abuse.&#160;</span></div><div> <span style="color&#58;#403f3f;font-size&#58;16px;"> <br></span></div><div> <span class="ms-rteStyle-Body"></span> <span style="color&#58;#403f3f;font-size&#58;16px;">For investors, it is important to clarify what ethical screening is, as it may not align with your values or may exclude things you’re interested in supporting. Make sure to consider, ‘what does ethical really mean?’ and ‘ethical for whom?’ to decide what is right for you.&#160;</span></div><div> <br class="ms-rteStyle-Body"> </div><div> <span class="ms-rteStyle-Heading3">What does this mean to CCI?</span></div><div> <span class="ms-rteStyle-Body"> <br></span></div><div> <span class="ms-rteStyle-Body">We manage investments in line with the Catholic social teachings of human dignity and social and financial stewardship. We screen investments and exclude any that are involved in armaments, pornography, gambling, abortifacients, contraceptives or tobacco.</span></div><div> <br class="ms-rteStyle-Body"> </div><div> <span class="ms-rteStyle-Body">We don’t just review a company’s investment strategy. We also screen their objectives, conduct and trade agreements. For example, companies which engage in excluded conduct including child labour, discrimination, corruption and dictatorial regimes, wages and conditions below minimum standards, lack of labour rights relating to work conditions and environmental damage that is not redressed, are screened out. This full Catholic values screening is something no other provider in the market place offers.</span></div><div> <br class="ms-rteStyle-Body"> </div><div> <span class="ms-rteStyle-Body">Ethical investment screening will keep evolving as markets and values change, but it is largely here to stay.&#160;</span></div><div> <span class="ms-rteStyle-Body"> <br></span></div><div> <span class="ms-rteStyle-Body"><strong>For more information about how you can invest responsibly, call 1300 655 220 or&#160;speak to&#160;our expert David Smith&#160;today&#58;</strong><br></span></div><p>&#160;<br></p><div class="divTable"><div class="divTableBody"><div class="divTableRow"> <span class="divTableHead leftNav">​<img src="/who-we-are/PublishingImages/Pages/David-Smith/David-Smith.png" alt="" style="margin&#58;5px;" /><br><span class="ms-rteStyle-Heading6">David Smith</span><br><span class="ms-rteStyle-Heading7">Business Development Manager</span><br><br><span class="ms-rteStyle-Body"><span class="ms-rteStyle-CodeSample"><a href="mailto&#58;David.Smith@cciassetmanagement.org.au"><span class="ms-rteStyle-EmailLink">&#160; &#160;​Email David&#160;&#160;&#160;</span></a> </span> </span> </span></div></div></div><p> <br> </p><img alt="" src="/News/PublishingImages/Pages/Ethical_investments-news.jpg" style="BORDER&#58;0px solid;" /> <img alt="" src="/Style%20Library/Asset_Management/CCI/img/AllNewsBanner.jpg" style="BORDER&#58;0px solid;" />3/09/2017 5:30:07 AMhttp://cciassetmanagement.org.au/News/Pages/Forms/AllItems.aspxhtmlFalse
Moving up the risk spectrum75480During periods of low investment growth, investors often re-examine their appetite for risk in search of better returns and higher yielding investments. During periods of low investment growth, investors often re-examine their appetite for risk in search of better returns and higher yielding investments. This strategy may be successful, but organisations need to ensure that they understand, and are able to tolerate the risks.2017-05-30T14:00:00Z<p> <img id="imgContent" src="/News/PublishingImages/Pages/Risk_spectrum-news.jpg" alt="" style="margin&#58;5px;" /> <br> </p><p> <br> </p><p> <br> </p><div> <span class="ms-rteStyle-Heading5"> <strong id="newsIntro">During periods of low investment growth, investors often re-examine their appetite for risk in search of better returns and higher yielding investments. This strategy may be successful, but organisations need to ensure that they understand, and are able to tolerate the risks.</strong></span></div><div> <br class="ms-rteStyle-Body"> </div><div> <span class="ms-rteStyle-Heading3">What is investment risk?</span></div><div> <br class="ms-rteStyle-Body"> </div><div> <span class="ms-rteStyle-Body">There are many types of investment risk. When it comes to investment returns, risk is the variability (or volatility) of your investment and the chance that your investment won’t return the outcomes you want. If you think of your investment strategy as a journey, you may start with investments such as cash, which have lower risks and generate low returns. As your desire for returns and risk appetite grows you may look at other types of investments such as property and Australian equities. One approach to managing the risk associated with these types of investments is by diversifying or mixing the asset combinations.&#160;</span></div><div> <br class="ms-rteStyle-Body"> </div><div> <span class="ms-rteStyle-Heading3">What is return?</span></div><div> <br class="ms-rteStyle-Body"> </div><div> <span class="ms-rteStyle-Body">To determine how profitable an investment is, investors look at how much they stand to profit from investing in a particular stock. Relative to the cost of your investment, it is usually expressed as a percentage, so a $100 return on a $1000 investment in a stock is a 10% return. Not all investments have high returns, so investors then compare the percentages of different investments and take into account their exposure to market risks, to determine what is most profitable.&#160;</span></div><div> <br class="ms-rteStyle-Body"> </div><div> <span class="ms-rteStyle-Heading3">Aligning risk perceptions with reality</span></div><div> <span class="ms-rteStyle-Body"> <br></span></div><div> <span class="ms-rteStyle-Body">This prolonged period of low growth and low interest rates is uncharted territory for investments and risk. Before the Global Financial Crisis (GFC), high interest rates meant higher returns on lower risk investments, like cash (see graph 1.0). Therefore, investors were not under pressure to engage in riskier investments, like property or Australian equities, to get returns. Where the market has lower interest rate expectations, such as in today’s economic environment, investors often re-examine their appetite for risk and move up the risk spectrum in search of higher yielding investments and better returns.&#160;</span></div><div> <span class="ms-rteStyle-Body"> <br></span></div><div><p> <span class="ms-rteStyle-Body"> <strong>Graph 1.0</strong></span></p></div><div> <img id="imgGraph" src="/News/PublishingImages/Pages/Annualised%20Return.jpg" alt="" style="color&#58;#403f3f;font-size&#58;16px;margin&#58;5px;" /> </div><div> <br> </div><div> <br> </div><div> <span id="noWrap" class="ms-rteStyle-Heading3">Risk and you&#160;</span></div><div> <span class="ms-rteStyle-Body"> <br></span></div><div> <span id="noWrap" class="ms-rteStyle-Body">The key here is to consider your appetite for risk and your investment time horizon. While interest rates remain low, for those investors relying on investments as an income stream from cash or fixed interest, as is the case with many Church entities, the risk is these investments may not provide sufficient long-term returns to achieve an organisation’s objectives. In some cases, it means lower than expected returns and potentially not achieving a return above the rate of inflation.</span></div><p></p><div> <br class="ms-rteStyle-Body"> </div><div> <span class="ms-rteStyle-Heading3">What can I do?</span></div><div> <br class="ms-rteStyle-Body"> </div><div> <span class="ms-rteStyle-Body">The best way to rest easy at night is&#58;&#160;</span></div><div> <span class="ms-rteStyle-Body">1.&#160;Understand your risk tolerance.&#160;</span></div><div> <span class="ms-rteStyle-Body">2.&#160;Understand your investable time horizon.&#160;</span></div><div> <span class="ms-rteStyle-Body">3.&#160;Diversify your investment across different asset classes, so you spread risk.&#160;</span></div><div> <span class="ms-rteStyle-Body"> <br></span></div><div> <span class="ms-rteStyle-Body"> This way, you can align an appropriate investment strategy to your risk and return preferences. </span></div><div> <br class="ms-rteStyle-Body"> </div><div> <span class="ms-rteStyle-Body"> <strong>Taking risks can have great rewards – it’s all about being comfortable with, and understanding, those risks.&#160;</strong></span></div><div> <span class="ms-rteStyle-Body"> <strong> <br></strong></span></div><div> <span class="ms-rteStyle-Body"><strong>Call 1300 655 220 or speak to one of our&#160;experts today&#58;&#160;</strong></span></div><div> <span class="ms-rteStyle-Body"><strong><br></strong></span></div><div> <span class="ms-rteStyle-Body"><strong> <div class="divTable"><div class="divTableBody"><div class="divTableRow"> <span class="divTableHead leftNav">​<img src="/who-we-are/PublishingImages/Pages/William-Manuel/William-Manuel.png" alt="" style="margin&#58;5px;" /><br><span class="ms-rteStyle-Heading6">William&#160;Manuel</span><br><span class="ms-rteStyle-Heading7">Head of Asset Management</span><br><br><span class="ms-rteStyle-Body"><span class="ms-rteStyle-CodeSample"><a href="mailto&#58;William.Manuel@cciassetmanagement.org.au"><span class="ms-rteStyle-EmailLink">&#160; &#160;​Email William &#160;&#160;</span></a> </span> </span></span><span class="divTableHead leftNav">​<img src="/who-we-are/PublishingImages/Pages/David-Smith/David-Smith.png" alt="" style="margin&#58;5px;" /><br><span class="ms-rteStyle-Heading6">David Smith</span><br><span class="ms-rteStyle-Heading7">Business Development Manager</span><br><br><span class="ms-rteStyle-Body"><span class="ms-rteStyle-CodeSample"><a href="mailto&#58;David.Smith@cciassetmanagement.org.au"><span class="ms-rteStyle-EmailLink">&#160; &#160;​Email David&#160;&#160;&#160;</span></a> </span> </span> </span></div></div></div> </strong></span></div><br><img alt="" src="/News/PublishingImages/Pages/Risk_spectrum-news.jpg" style="BORDER&#58;0px solid;" /> <img alt="" src="/Style%20Library/Asset_Management/CCI/img/AllNewsBanner.jpg" style="BORDER&#58;0px solid;" />22/08/2017 12:09:47 AMhttp://cciassetmanagement.org.au/News/Pages/Forms/AllItems.aspxhtmlFalse
Searching for yield75482Searching for yield on your investments in a low interest environment is hard, but not impossible. Business Development Manager David Smith explains the challenges.Searching for yield on your investments in a low interest environment is hard, but not impossible. Our expert, David Smith, Business Development Manager of Asset Management, explains the challenges. 2017-01-28T13:00:00Z<p> <img id="imgContent" src="/News/PublishingImages/Pages/article2.jpg" alt="" style="margin&#58;5px;" /> <br> </p><p> <br> </p><p> <br> </p><p style="font-family&#58;&quot;segoe ui semilight&quot;, sans-serif;font-size&#58;14px;box-sizing&#58;border-box;"> <span class="ms-rteStyle-Body"></span></p><div> <strong id="newsIntro" style="color&#58;#000000;font-family&#58;montserrat;font-size&#58;18px;">Searching for yield on your investments in a low interest environment is hard, but not impossible. Business Development Manager David Smith explains the challenges.&#160;</strong><br></div><div> <span style="color&#58;#00aec1;font-family&#58;montserrat;font-size&#58;22px;font-weight&#58;bold;"><br></span></div><div> <span class="ms-rteStyle-Body"><strong></strong></span><span style="color&#58;#00aec1;font-family&#58;montserrat;font-size&#58;22px;font-weight&#58;bold;">What is yield?</span></div><div> <br class="ms-rteStyle-Body"> </div><div> <span class="ms-rteStyle-Body">Yield is the income returned on an investment or security. Generally expressed as a percentage, yield measures the cash flow of an investment over the year ahead, and takes into account interest and dividends, but not capital growth. For example, if you invest $1000 into a stock with 4% yield per annum, your yield will be $40 every year. The total return an investment provides can be determined by calculating the yield of the investment plus capital growth.</span></div><div> <br class="ms-rteStyle-Body"> </div><div> <span class="ms-rteStyle-Heading3">Is yield important?</span></div><div> <br class="ms-rteStyle-Body"> </div><div> <span class="ms-rteStyle-Body">Yield is tied to your investment risk, and higher yields mean higher risk. If you’re investing for income, then yield is extremely important, as it provides greater certainty of return and a regular cash flow. For many Church organisations, the income they receive from their investments is what enables them to continue their mission. While there’s still a chance of a capital loss, the yield generated from the investments flows back to the organisation as income.</span></div><div> <br class="ms-rteStyle-Body"> </div><div> <span class="ms-rteStyle-Heading3">How do I invest for yield?</span></div><div> <br class="ms-rteStyle-Body"> </div><div> <span class="ms-rteStyle-Body">High yield investments have become popular since the Global Financial Crisis (GFC) ushered in a low growth environment. As economies around the world have low or no growth, and interest rates remain low, this puts pressure on investment returns. Pre-GFC, Term Deposits were high yielding investments (see graph 1.0) and investors could lock in term deposit rates as high as 6% pa, a higher return than bonds at the time. Term Deposit rates now sit between 2-3% pa, leaving little room for profit above inflation. This current low interest rate period will have long-term consequences. As interest rates remain low, the yield on higher risk investments (like stocks) is also low, meaning investors need to wait longer and take on higher risks to get higher yields.</span></div><div> <br class="ms-rteStyle-Body"> </div><div> <span class="ms-rteStyle-Heading7">Graph 1.0</span><br></div><div> <img id="imgGraph" src="/News/PublishingImages/Pages/Term%20Deposit%20Rates.jpg" alt="" style="margin&#58;5px;" /> <br></div><div><br></div><div><br></div><div><span style="color&#58;#00aec1;font-family&#58;montserrat;font-size&#58;22px;font-weight&#58;bold;">Build an investment solution to suit you</span><br></div><div> <span class="ms-rteStyle-Body"> <br></span></div><div> <span class="ms-rteStyle-Body">Yields are all about product mix and time horizon. For more aggressive, higher yielding strategy, be prepared to pursue a longer term strategy and wait out any sudden changes in the market. Conversely, for more conservative strategies, a diverse product mix over a shorter time horizon will give you a lower yield.</span></div><div> <br class="ms-rteStyle-Body"> </div><div> <span class="ms-rteStyle-Body">In addition to yields, consider the strength and stability of the company you wish to invest in. For example, if there is a major scandal and their share price halves – not only is your yield affected, your initial investment is also at risk of being lost.&#160;</span></div><div> <br class="ms-rteStyle-Body"> </div><div> <span class="ms-rteStyle-Body">Searching for yield in a low interest environment is difficult but not impossible.&#160;</span></div><div> <span class="ms-rteStyle-Body"><br></span></div><div> <span class="ms-rteStyle-Body"> <strong>Call 1300 655 220 or speak to our expert David Smith&#160;today&#58;</strong></span>​<br></div><div> <br> </div><div><div class="divTable"><div class="divTableBody"><div class="divTableRow"> <span class="divTableHead leftNav"><img src="/who-we-are/PublishingImages/Pages/David-Smith/David-Smith.png" alt="" style="margin&#58;5px;" /><br><span class="ms-rteStyle-Heading6">David Smith</span><br><span class="ms-rteStyle-Heading7">Business Development Manager</span><br><br><span class="ms-rteStyle-Body"><span class="ms-rteStyle-CodeSample"><a href="mailto&#58;David.Smith@cciassetmanagement.org.au"><span class="ms-rteStyle-EmailLink">&#160; &#160;​Email David&#160;&#160;&#160;</span></a> </span> </span> </span></div></div></div> </div><div><span class="ms-rteStyle-Body"><br></span></div><img alt="" src="/News/PublishingImages/Pages/article2.jpg" style="BORDER&#58;0px solid;" /> <img alt="" src="/Style%20Library/Asset_Management/CCI/img/AllNewsBanner.jpg" style="BORDER&#58;0px solid;" />21/08/2017 1:47:36 AMhttp://cciassetmanagement.org.au/News/Pages/Forms/AllItems.aspxhtmlFalse