Apr 24 2007
Despite commonly-held misconceptions, ethical investment products, such as ethical child trust funds, are not necessarily less profitable than non-ethical investments, it has been claimed.
F&C Asset Management reports that there is no market evidence of lower returns from ethical funds, though the firm also notes that many ethical investors are more concerned with the ethical accountability of their investment.
Jason Hollands, a director at the firm, said: "People who buy ethical funds primarily do it because they want to make sure their money isn't invested in certain types of business."
He added that these people will also consider the performance of their ethical funds, but often rank this as being of secondary importance.
Last year, F&C reported that the trade of ethical funds was booming in the UK as a result of increased public awareness of such options meaning they are no longer seen as an unusual niche investment.
