ethical 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 ?
The current fund selection for NEST members comprises the NEST Retirement Date Funds (NRDFs), 47 single year target date funds which act as the default strategy, and 5 fund choices, namely the Higher Risk Fund, the Lower Growth Fund, the Ethical Fund, the Sharia Fund and the Preretirement Fund.
We identified investors in an ethical fund as a group whose actions should offer a strong test of the theory.
When the first mainstream ethical fund from Friends Provident launched in 1984, it was rather unfairly labelled as the 'Brazil fund', because you would have to be nuts to invest in it,'' he says.
AEGON ETHICAL FUND FROM 2003 to 2008, the Aegon Ethical Equity fund achieved growth of 131% despite operating in limited stock markets.
When M&S launched an Ethical Fund in 2007, I fixed a pounds 75 monthly direct debit.
In London, Faith Matters,which was incorporated as a not-for-profit community interest company in February 2007,a few days ago launched the Kafaala Ethical Fund which, according to the promoters,is a "non-interest based fund that meets the religious obligations of some faiths but it is open to all; that provides small business loans for existing businesses and start ups; and that is open to the financially excluded who cannot get access to credit from banks.
Q I AM considering investing in an ethical fund, but how do they decide on which companies to invest in and which to avoid?
And even if an ethical fund doesn't pay off immediately, said Ellmen, good returns over the long-term are likely.
41) While the size of the ethical fund sector currently appears too small to influence sustainable development by generating a meaningful share price differential between more and less environmentally sound businesses, ethical funds are useful for providing liquidity for venture capital and other small, start-up businesses, which in turn can disseminate wider environmental benefits.
They learned of Jacob's work, and in 1983 offered to manage an ethical fund with investment criteria determined by a separate committee.
A SURVEY by Investment Life & Pensions Moneyfacts revealed the last year has proved to be an impressive period for ethical fund performance.
Of course, the real winner in our sample is the conventional ethical fund segment, which delivered double the returns of Islamic asset allocation, our second highest performing category.