My First Client and Her Investment Experience

July 1, 2020
Pedro Marin Ramirez

Tailoring Sustainable Investment Options

My first client was a lovely woman in her late 50s with very strong convictions about how her money was to be invested, which gravitated towards social impact and sustainable options. Her views were something I genuinely took on board as I wanted to provide her with the best investment experience I possibly could at the time.

After due diligence and hours of research, I was able to deliver a range of investment options which made her proud of her portfolio, as she seemed to be in between a rock and a hard place when we first met.

Testimonial: A Happy Client

“I went to see Pedro about managing my super and making some ethical/sustainable investments .. Pedro explained the difference between super accumulation and funds after retirement .. We discussed my special needs and interests in sustainable investment. Pedro was able to explain very clearly the options that are out there, and prepared a very complete and interesting portfolio that I was satisfied with. He was very attentive to detail, concerned that I understood everything, took the time to explain, and follow up on the actions we agreed upon.”

Advocacy for Sustainable Investing

In the months and years following this, during many meetings with investment managers, I continued to raise questions about sustainable investing. These questions would include stripping out fossil fuels, ammunition, tobacco, and gambling from some model portfolios in order to make them more sustainable for retail clients. This concept was something I knew would become more important as time goes on, especially with a growing number of clients interested or concerned about where their money is being invested.

Challenges in the Australian Market

Having said this, in Australia, most of the concentration of stocks in the ASX derives from a non-sustainable-friendly category (fossil fuels), and when you strip out some of these categories to seek investment options for sustainable/ethical retail clients, you’re left with a smaller fraction of this investment universe. Remember, diversification is key when investing, which is why it is important to seek professional advice before making any changes to your investments.

Imagine that each one of us (inclusive of our investments) are like a singular colour passing by a colour prism. One small movement and it can completely change you (or your portfolio). This movement is what I call, education.

Encouraging Investor Awareness

A large majority of Australians don’t pay attention to how their most important assets are invested, as that job is placed mostly in the hands of superannuation funds and investment managers. But when you are able to align your investment needs with your convictions (whichever they may be), it can truly be a rewarding experience.

Next time you are considering your investment options, please reach out to your dedicated financial advisor (or to myself) as we will be thrilled to open the Pandora box of investment options and tailor something that matches your needs and convictions.

Until next time,

Pedro Marin Ramirez CFP ®