Wake up daily to our latest coverage of business done better, directly in your inbox.
Get your weekly dose of analysis on rising corporate activism.
The best of solutions journalism in the sustainability space, published monthly.
Select Newsletter
By signing up you agree to our privacy policy. You can opt out anytime.
The past 12 months have been a notable period for ethical fund performance with the average ethical fund posting gains of 24% compared with 18% growth from the average non-ethical fund.
The latest survey from Investment Life & Pensions Moneyfacts survey examined the performance of ethical funds, conventional non-ethical funds, index trackers and the FTSE 100 over a number of investment periods.
It also compared ethical funds within the three IMA sectors that contain the most ethical funds.
Ethical funds have also outperformed UK Index Trackers (23%) and the FTSE 100 (18%).
Richard Eagling, head of investments and pensions at Moneyfacts, said: “Ethical funds have clearly benefitted from their lack of exposure to ‘unethical sectors’.”
Over three years ethical fund returns have also edged ahead of non-ethical funds, with the average ethical fund up by 36% compared with growth of 31% from the average non-ethical fund. However, after five years there is very little difference in performance levels.
Comparing ethical funds within the three IMA sectors that contain the most ethical funds (£ Corporate Bond, Global and UK All Companies) shows that in each case there is only a small gap between ethical fund performance and their non-ethical peers.
For instance, over 10 years the average Global ethical fund is up by 127% compared with growth of 131% from their non-ethical peers.
TriplePundit has published articles from over 1000 contributors. If you'd like to be a guest author, please get in touch!
