Ah, social investing. This is an old question of whether social/ethical investing is really that, OR a niche marketing way to gather assets? Enter Eguality Capital looking to invest in only pro-LGBT companies and ones that focus on pro-LGBT rights. Obviously stocks that are in the tobacco, alcohol or gun fields can be excluded from some social funds since they are easy to segregate, BUT social agendas or causes? How do you screen investments? Call ANY company and ask before you invest “are you pro-LGBT rights?” You for woman’s rights? Diversity? Are you for chopping down trees? Not one will say no, I’ll bet. So, ethical investing or market niche? I see marketing niche.
A new player, Equality Capital, has entered the wealth management market with a very specific mandate, to only invest in pro-LGBT companies, building on the current vogue for environmental, social and governance (ESG) or ethical investment programmes to include those focussed on pro-LGBT rights. Therefore, if you are a supporter of LGBT equality then it makes sense to consider the ethics of your investments and whether they support your views. Increasingly, the LGBT community is beginning to understand that they have the power to create positive change with their spending and investment decisions.
According to this new market entrant, the global wealth of the LGBT community worldwide is US$15 trillion, a not insubstantial sum. This figure has attracted wealth management companies into this sector who recognise that if you can match your offering to the needs of your customers then there’s money to be made…”
Source: LinkedIn Pulse/Elaine Mullan