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Ethical investors are reaping their rewards

Ethical investors are reaping their rewards

Category: Ethical

Updated: 31/10/2008
First Published: 29/08/2007

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The latest survey by reveals that ethical investors are being rewarded for following their conscience, with ethical fund returns surging ahead of mainstream traditional funds.

The strong returns enjoyed by ethical funds in recent years have helped to shatter the misguided belief that ethical investments will always underperform traditional investment funds.
Ethical funds have outperformed their non-ethical rivals and the FTSE 100 over the last three years.

Our survey examined the performance of ethical funds, conventional non-ethical funds, index trackers and the FTSE 100 over one, three, five and ten years.

1 year3 years5 years10 years
Ethical Funds18.36%57.23%65.96%97.75%
Non-Ethical Funds13.73%52.39%67.11%103.47%
FTSE 10013.28%48.02%41.91%43.51%

Source: Lipper Hindsight. % Growth as at 1 July 2007, total return, UK net, no initial charges

  • Over the last 12 months the average ethical fund has posted growth of 18.3% compared with 13.7% from the average non-ethical fund.
  • Ethical funds are also now outstripping non-ethical funds over three years with growth of 57.2% compared with 52.3%.

Some individual ethical funds are also performing well within their respective sectors in comparison with their conventional counterparts:

  • F&C Investments Stewardship Income fund is ranked second within the UK Equity Income sector in terms of cumulative performance over one year
  • Jupiter Ecology lies sixth within the Global Growth sector out of 167 funds for cumulative returns over three years
  • AEGON Ethical Equity is ranked 16th out of 290 in the UK All Companies sector for cumulative returns over three years

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.