Climate Change – Ethical Investing – What’s Happening?

One of the most common questions I am receiving is along the lines

“ While I want my investments to be safe and earn a good rate of return I am also concerned about being reasonably Environmental sustainable”

Some people do go further and express serious concerns  while a few say “ Maximise returns – that’s it”

Okay so how do I reply ?

While I have my personal beliefs as your Financial Advisor I don’t believe it is not my role to advise or judge on the politics of issues like Climate Change.

My role is to advise you on the most suitable investment options available and how they may help you achieve your goals and objectives

Virtually ALL Fund / Investment Managers see these issues are critical to their ongoing investment decision

“Investment in renewables will be the  key driver of $56b fund’s growth, says Cbus chief”

“Climate change will reshape finance, says world’s largest fund manager  –  Will make climate change central to investment decisions when investing it’s $US7 trillion”

These sentiments from today’s news are repeated every time I speak with Investment Chiefs.  

In December I meet a UK based Investment Manager personally responsible for around $1.5 trillion. When asked about “fossil fuel” type investments he was very clear,  “Yesterday’s investments  – okay they will continue to be significant businesses for some time to come but very little, if any, new investment is being made.

“They are already struggling to match returns from new technology especially renewables BUT if you need to invest new capital – forget it.”

In particular he “won’t touch coal – dead as a Dinosaur“. He confirmed the UK will be out of coal power production in just a few years    

Investment Managers don’t allow emotion to rule decisions rather they look at what will deliver clients $$$ into the future.  

What they are all saying is the way to make money into the future is :

  1. Continue to investment in New Age Technology  – that’s where the big returns have already come in the 21st C and that trend will continue.
  2. Focus on Companies those Management that is “switched on” to what Society and their  Employees are demanding –  they all expect more and more attention on Government and Socially lead pressure on companies to respect the Environment and increase Social Responsible Practices. If they don’t they will suffer.

BANKS  – Many people ask about whether Banks, in Australian and worldwide,  are focused on these areas ?   My belief is YES   – It is my understanding that very few , if any , banks are investing in say Coal based investments  – yes they will support some existing project loans,  but new loan / equity – Forget it !

Again Banks are fundamentally “investment managers “ – they only lend money only if they think they will get a good return and get their money back

Ron’s POINT   – Almost all the investments in which your funds are invested are already very conscious of the need to move away from these type of “old world industries” :   While their decisions aren’t being made on “social grounds”  it just makes good investment sense !  

There is a huge divergence in what different people view  as “environmentally/socially/ethically” acceptable and important.

When people ask me about investments labelled  “Ethical or Socially Responsible“  the difficulty I have is truly understanding exactly what are their  “rules” and where are really invested

Then a big issue is  “what one person views acceptable others don’t “   eg

Woolworths  –  makes money from Poker Machines and Alcohol  –  is that acceptable ?

Banks  – if they have loans to say Coal companies but are not making new investments is that okay?   

They all lend to companies in the Defence Industry

Even say A2 Milk   – some say they are effectively undermining the “average” Dairy Farmer by only supporting “select” diaries ?

BHP / RIO    – Do many people really know what they mine ?

Facebook    –  are they acceptable ?

Chinese Owned Companies  – are they acceptable?

You tell me ! 


Overall I believe that most Investment Manager I recommend are very aware and focused on the big issues, especially those most commonly believed to be impacting Climate Change. While not so much for “social reasons” ( although I suspect many are believers) but rather for economic reasons are rapidly moving away from those areas.   

In the meantime  always happy to chat to every-one especially those who have particular concerns or have definite views and requirements

Cheers and stay happy,

Property Always Goes Up – Get in quick !


Well that was the call for the past several years from all the “wise” guru’s.  

Well as we saw in 2018 Property does not always go up !  – In fact like virtually every other

Investment in goes up and down !    Funny that !

What happened  in 2018 and is continuing is nothing knew – in the life time of an “ old guy” like me I’ve seen this 3  –  4 times !

Read more
Why you invert in shares

Why you invest in shares


Fidelity has always been a “favourite” of mine ! . While not so great over past 12-18mths long term it has been a real winner .

If you’d invested $10,000 in June 2003, it would now be worth $57,259. You’d have made almost six times your money. NB Remember this includes the GFC period Read more

Personal tax Cuts

Personal Tax Cuts – Not So Soon!!


Just to clarify a few points re the proposed ( not yet legislated) Personal Tax cuts ( lets focus on the first round )

  • Will not actually lower weekly tax ie you will not get more in each week’s pay packet
  • The idea is to increase the “Lower Earners Tax Offset “ – this is only applied when you lodge your tax return
    SO – if you qualify when you lodge your tax return in 2019 / 2020 the ATO applies an “extra credit “ so tax if everything else was equal
    You would get a larger tax refund or be asked to pay less tax

Money $$ YES – but not so quickly

Personal Income Tax Plan Bill

On 9 May 2018 the Government introduced the Treasury Laws Amendment (Personal Income Tax Plan) Bill 2018.

The Bill introduces the personal tax measures announced in the 2018 Federal Budget which include:

  • a Low and Middle Income Earners Tax Offset of up to $530 applying from 1 July 2018 to 30 June 2022
  • an increase to the Low Income Tax Offset from 1 July 2022 from $445 to $645, and
  • progressively increase the income tax thresholds in 2018/19, 2022/23 and 2024/25.

Ron Ogilvie
O & M Private Wealth

Plan your Retirement

Aged Pension – Significant Changes

I have started discussing this major change to the aged pension with some of you but to bring all up to date

From Jan 2017 the  Assets Test is to be significantly tightened  which will impact many people’s pension.

You may have heard the maximum level of assets people can hold and still be entitled to a pension is being reduced eg. Read more