Articles: Ethical investing makes more money

      Ron
   Robins
     MBA

Founder
& Analyst

Media Coverage of Investing for the Soul

Report on Business Television's Business Morning
CBS MarketWatch
The Financial Post
Rogers Television's Money Line
CBC Radio One's Metro Morning
680 News Radio
New Directions Magazine
Environmental News Network Radio
The Catholic Register
More...

Editorials

Shareholder Values

"Of the 1,003 investors surveyed, nearly half (49%) said that over the next 12 months they were likely to invest in a company or mutual fund looking to provide solutions for environmental problems."
-- Allianz Global Investors
(USA) January 2008

"88% of respondents felt
that it was either “fairly” or “very” important for companies to take environmental, social and governance issues seriously'"
-- F&C Investments
(UK) May 2008

84% of Canadian shareholders agreed with this statement: "[The] financial community should pay more attention to social and environmental performance when valuing companies."
-- GlobeScan
(Canada) February 2004

Ethical investments make more money

from: MyFinances.co.uk August 16, 2005

Ethical funds have outperformed the FSTE 100 and index-tracking funds over the last ten years, proving that profits and principals can go hand in hand.

The latest survey from the investment, life and pensions service of price comparison website Moneyfacts.co.uk finds that over a ten-year period, the average ethical fund has delivered returns of 75 per cent - higher than both the average index tracker fund and the FTSE 100 index.

"Supporters of ethical investing agree there is a great opportunity for funds to outperform index-trackers as there is a much greater emphasis on active management in seeking out stocks which meet the criteria of the fund from both a financial and ethical perspective," said Richard Eagling, editor of Investment, Life & Pensions Moneyfacts.

"The average ethical fund has achieved better growth than the FTSE 100 (with the exception of the last 12 months). This is particularly prominent over ten years where ethical funds posted a return more than 20 per cent ahead of the index. These results should give investors confidence that it is possible to profit without sacrificing your principles."

The Moneyfacts survey looks at the performance of ethical funds, conventional non-ethical funds, index trackers and the FTSE 100 over one, three, five and ten years.

Index-trackers, able to invest in blue chip companies without question, offer an interesting comparison with ethical funds - which are often forced to rule out many of these stocks.

Over the last year, index-trackers outperformed ethical funds, producing returns of 13.34 per cent - almost exactly 50 per cent higher than the return on the average ethical fund.

But over the longer term this levels out, with ethical funds narrowing the gap on three and five-year investments and producing far stronger returns over ten years than index trackers.

Over the last 12 months ethical and less limited non-ethical funds grew by a very similar amount, with returns of 8.87 per cent and 9.38 per cent respectively.

But over the long term the figures reverse.

Looking at the ten-year horizon, the average non-ethical unit trust has risen 87.63 per cent while the average ethical fund has grown just 74.84 per cent.

Both outperformed index-trackers and the FTSE 100 by a significant margin, Moneyfacts reports.

But, as ever, the choice of fund can be key.

An investment in a well managed ethical fund can comfortably hold its own against non-ethical funds, over any investment horizon.

Moneyfacts points to the F&C Stewardship Income fund, this is ranked ninth out of 64 UK equity income funds over five years, and seventh out of 71 funds over three years.

Ethical Investing News & Commentary | Archives | Books | Important Links | Ron Robins

Ethical Investing Workshops | Services For Investors & Investment Professionals | Who Should Invest My Money?

Press Kit | Press Releases | Editorials | Spiritual Quotes | Free Newsletter/Unsubscribe

Privacy Policy | Event Notification | Want a Speaker? | Contact Us | Sitemap

Disclaimer: This website does not make investment recommendations. Nothing in this site should be interpreted as a recommendation or solicitation to buy/sell any securities or investments. Investing for the Soul is a source of general information and resources for spiritual investing, ethical investing, and socially responsible investing (SRI). Investors should consider their actions thoroughly and consult their financial advisers and other professionals, prior to taking any investment action. This website does not necessarily agree with the opinions expressed in articles on its pages or offered on the web pages to which it might be linked. Such opinions are the responsibility of the writers themselves. Furthermore, this site does not offer or provide any warranties, representations, guarantees, implied or otherwise, as to the accuracy, legality, copyright compliance, timeliness or usefulness of the information, materials or services on this, or other sites, to which it is linked.

Investing for the Soul is a registered business name in the Province of Ontario, Canada.