ESG investing is now a mainstream type of investing and a useful part of a portfolio. But what is it and why is it good for me?
A year ago, someone came to ask for advice on moving investments from UK investments to Spain investment. We discussed their position, their requirements, their reasoning behind moving the money to Spain. All the reasoning behind the thought process was very sound. However, there were some practical aspects that I highlighted that needed addressing before making the move. The issues were taxation in Spain and their requirement for sustainable and/or responsible investments.
These people were really pleased with their investments with returns over 120% in 8 years. The increase in value in these funds had been so spectacular that there was a large capital gains tax liability in Spain if they were to sell. Also, the funds also still meet their belief in ESG values.My advice was for them to keep their investments.