ethical fund

(redirected from Ethical Mutual Fund)

Ethical fund

Ethical Fund

A mutual fund in which the asset managers make investment decisions based upon some ethical code. An ethical fund is marketed to investors who may have moral objections to certain investment vehicles or companies. For example, an individual may have a moral objection to smoking and may therefore buy shares in a mutual fund that refrains from investing in tobacco companies. Ethical funds may have positive or negative guidelines; that is, a fund's ethics may inform where it makes investments (e.g. in environmentally friendly companies) and where it does not (e.g. in arms manufacturers). See also: Green fund, Islamic finance.

ethical fund

A mutual fund that limits investment alternatives to securities of firms meeting certain social standards. For example, an ethical fund might exclude securities of companies that are known to practice discrimination, that operate in certain countries, or that produce specific products (for example, those having to do with nuclear weapons or nuclear power plants). Ethical funds include the Dreyfus Third Century Fund, the New Alternatives Funds, and the Working Assets Fund, among others. See also social investing.
References in periodicals archive ?
Bauer, Rob, Keen Koedijk, and Roger Otter (2002) International Evidence on Ethical Mutual Fund Performance and Investment Style.
Evidence on the performance of ethical mutual funds is mostly limited to the US and UK markets.
As can be seen from the ethical investment statistics above, the majority of ethical financing in Canada occurs in the pension and ethical mutual fund sections.
The absence of any objective basis for determining what qualifies as "ethical" or "environmentally responsible" may impede the expansion of the ethical mutual fund market.
34) These products include green mortgages, ethical mutual funds, and pollution damage liability insurance.
These institutions range from specialist ethical mutual funds to large pension plans.
A number have established ethical mutual funds, such as the Ethical Growth Fund founded in 1986 by Vancouver City Savings Credit Union.
Although Canadian regulation of the mutual fund industry, as in other jurisdictions, does hot distinguish between ethical mutual funds and traditional mutual funds, some commentators have suggested that investment regulation should make a distinction because the unique investment agenda of ethical funds gives rise to specific expectations from investors.
At the interview Jacob mentioned that he had been studying ethical mutual funds in the USA.