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Fortunes improve for ethical investors

Fortunes improve for ethical investors

Category: Ethical

Updated: 10/06/2010
First Published: 10/06/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Green investors have been rewarded for their principled approach after it was revealed the performance of ethical funds sector had improved over the past year.

The latest survey from Moneyfacts.co.uk showed ethical investment funds had enjoyed strong returns over the last 12 months, after having endured several years of relative underperformance.

Ethical funds fared particularly badly during the economic downturn, losing on average 22% of their value in the year from 1 May 2008 to 1 May 2009, compared with the average loss of 18% posted by non-ethical funds.

By contrast, the average ethical fund has delivered a return of 29.9% over the past year, slightly outperforming the average return of 29.8% delivered by non-ethical funds.

The news comes after a survey by F&C found almost three quarters of investors would consider using an ethical investment trust if one were available.

The ethical investment research service EIRIS also recently revealed that investments into green and ethical funds in the UK had hit a record high.

"As with any type of investment fund, it is clear that there are good, bad and indifferent performers within the ethical fund universe," said Richard Eagling, editor of Investment Life & Pensions Moneyfacts.

"However, although some ethical funds have performed consistently well, the challenge remains to convince mainstream investors of their benefits."

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