Ethical funds are 'closer to an investor's beliefs'

16 October 2007
Although investors can never be sure that the funds they invest in meet their ethical criteria exactly, one expert has suggested that certain funds will be more in line with their beliefs than others.

Jeremy Newbegin, director of The Ethical Partnership, said that matching clients to specific funds is not an "exact science" and is unlikely to ever be "perfect".

However, at least by researching funds investors are likely to find they are "much closer to their beliefs and lifestyles" than if they based their decision on performance potential, Mr Newbegin remarked.

"There are lots of different funds with different criteria, so there's normally something for somebody," he commented.

Moneyfacts recently reported that over a three-year period, the average ethical fund has offered better returns than both the average non-ethical fund and the FTSE 100 index.

Richard Eagling, editor of investment, life and pensions at the firm, said that strong performance has helped to "shatter" the perception that ethical investments do not deliver the kind of returns offered by other investments.

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