Jun 4 2007
While reporting that sales could well grow in the future, the Investment Management Association (IMA) has reported that ethical individual savings accounts (Isas) are at present a "niche" market.
The IMA reports that at currently, such investments represent less than a single per cent of the total funds managed in the UK.
However, the association notes that as long as these accounts remain commercially viable, there exists no fundamental reason why their market share will not increase with time.
Discussing ethical Isas, Helen Stephenson, communications officer for the IMA, said: "They're the same as any other fund, it's just that they seek to promote or avoid certain sectors of industry."
She added that the only disadvantage of such accounts is that they will avoid larger corporations that invest in certain industries, but that the spreads involved in investments with smaller companies are often "quite good".
Last month, Fidelity FundsNetwork forecast that sales of ethical investments would double over the course of 2007 as they increase in popularity.
