ethical fund

(redirected from Socially Responsible Funds)

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 ?
The list of climate sinners is longer at Parnassus Investments and Green Century Capital Management, two specialists in so-called socially responsible funds.
Forty-six percent of all respondents in the Charles Schwab survey, and 60% of the millennials, said it was important to invest in socially responsible funds because they wanted their investment to align with their beliefs.
Islamic funds screen their portfolios according to religious guidelines such as bans on tobacco, alcohol and gambling, similar to socially responsible funds in Western markets.
Islamic fund managers screen their portfolios according to religious guidelines such as bans on tobacco, alcohol and gambling, in much the same way as socially responsible funds.
We also commend TI-CREF for taking this important step to disassociate this harmful corporation from its Social Choice Funds and call on all socially responsible funds to do the same.
investors (such as hedge funds and private equity funds) that utilize ESG factors in their selection criteria, there are many opportunities for individual investors to find suitable socially responsible funds.
TYPICALLY, WHEN investors think of socially responsible funds, they think of windmills, herbal tea and other do-good investments that sacrifice return for values-driven goals.
As empirical research was conducted, a general consensus developed in the literature is that there is no significant difference between the performance of conventional equity money managers and socially responsible funds (Bello, 2005; Goldreyer, Ahmed, and Diltz, 1999).
This paper examines fund characteristics as well as risk and performance measures of all available socially responsible funds in the U.
Socially responsible funds, in particular, tend to go for small- to medium-sized companies and hold smaller percentage of shares in larger firms.
After integrating environmental, social and governance (ESG) factors in its general fund (55 billion euros), BNP Paribas Assurance said it is addressing expectations expressed by clients in a 2008 survey showing that half of all clients were ready to invest a portion of their contract in socially responsible funds.
Microfinance, private-equity financing, and socially responsible funds are enabling investors to add social commitment to their investment strategies.

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