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Kames – ethical investing through the market turmoil

Kames fund manager Audrey Ryan has been investing in a responsible way for decades. She tells Emma Wall, Head of Investment Analysis, what ethical investing means for her, and how to navigate the current stock market volatility.

Important notes

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

  • Ryan looks for stocks with growth prospects
  • Kames Ethical Equity screens out unethical sectors such as tobacco stocks
  • Audrey Ryan sees opportunities in small and mid-sized companies

Read transcript

Emma Wall faces the camera directly.

Emma: Hello, I'm Emma Wall and joining me today it's Audrey Ryan, manager of the Kame's Ethical fund. Hello Audrey.

Audrey: Good morning.

Emma Wall turns to speak to Audrey Ryan.

Emma: So what does ethical investing mean for you?

Audrey: Well, we've been involved in responsible investing for over 30 years at Kame's Capital and our Ethical Equity Fund is very much based on client led exclusions. We're aiming to invest in companies that we deem do not harm the environment or society.

Emma: And because you're invested in equities however, even though you do have that screen, you're very much looking for stocks that are going to outperform over the long run and indeed are sensitive to market turmoil. And there has been a bit of that of late if you ever look at a one-year view, the fund looks very good but on as one month you there are challenges, so perhaps you could talk a little to what's going on the market at the moment?

Audrey: You know clearly the situation we have at the moment with regards to the coronavirus and you know has destabilized the market to some degree and things have been somewhat volatile as I would expect. But I guess what we're looking for as you know bottom-up stock pickers is the opportunity that it's very often somewhat indiscriminate sector or stock moves provide us as stock pickers.

Emma: Where are you seeing those opportunities as stock pickers that would that overlay of that ethical view?

Audrey: I'm always on the lookout for you know an attractive growth business whether it be sustainable or secular growth characteristics, you know businesses we believe on a multi-year view can be much larger so always looking out for those types of sustainable businesses that we believe you know can deliver positive earnings momentum.

Emma: Where are you seeing those opportunities at the moment?

Audrey: Well in the small and mid-cap arena, I guess you know our research we very much focus on parts of the market place that we feel is underappreciated. And you know we're looking for opportunities and stocks that we believe you know the valuation can either be rate or indeed they can deliver positive earnings momentum that the market isn't expecting.

Emma: And what do you say to the fact that ESG and ethical investing has so surged in popularity in the last year? I know you've been doing it for a very long time but all of a sudden it's hitting headlines and investors are much more engaged than they use to be.

Audrey: Yeah no I absolutely agree with that I guess in terms of the products that we have on offer we've diversified our offering across asset classes and we see very strong interest both in ethical and sustainable investing. And you know as I go out and see clients the interest in terms of where we are allocating our capital is I would say increasingly important to end clients within the marketplace. So I believe we will continue to see momentum in terms of interest in both sustainable and ethical investing going forward and clearly climate change at the moment in terms of you know being a very important issue for many many years but I guess in terms of that has very much moved up the agenda. You know I think that very much benefits and what many of us are trying to do.

Emma: Audrey, thank you very much.

Audrey: Thank you.

This video is not personal advice or a recommendation to invest. If you are unsure about the suitability of an investment please seek advice. Investments can fall as well as rise in value and you could get back less than you invest. Past performance is not a guide to the future. Please read the key investor information before investing for more details of the risks and charges.

The views in this video are those of Audrey Ryan and may not be shared by Hargreaves Lansdown.

Views correct as at 03 March 2020.

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    Important notes

    This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

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