ethical fund

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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 sector, which started out with just a handful of funds marketing themselves as green or ethical, like Friends Provident Stewardship, NPI Global Care (now run by Henderson) and Jupiter Ecology, has evolved and diversified into a rapidly growing range of options, where 'ethics' may or may not play a major role - sustainability themed funds, negative ethical funds, faith-based funds, environmentally themed funds and many others.
Kamran Butt, managing director at SEDCO Capital, participated in the panel discussion entitled "Responsible Investing: The Shift toward Green Finance, ESG & Ethical Funds," alongside executives from the Luxembourg Stock Exchange and other global institutions.
On first impressions it may seem surprising that over the past decade the amount of money invested in ethical funds remains so modest.
3bn in specialist ethical funds has won awards for its socially responsible investment management.
On the bright side, when it comes to ethical funds, the need of choosing strong returns in place of personal values isn't completely necessary given their consistent performance since 2010.
We compared conventional ethical funds over the long run with conventional indices.
You can opt for ethical funds, which don't invest in areas such as gambling, pornography or fire arms.
Strong financial returns delivered by many ethical funds haven't gone unnoticed and we're seeing an increase in enquiries as many savers lose faith in the activities of banks and pitiful returns on savings which they offer.
There are more than three-quarters of a million investors in green and ethical funds, up from around 250,000 in 2001 when pounds 4bn was invested ethically in the UK.
There are scores of different ethical funds to choose from, all with slightly different criteria.
For example, many ethical funds exclude tobacco companies and banks, which have been high earners for non-ethical funds.
They said that the reduction does not address systemic issues that were raised in a shareholder proposal filed with the company by The Ethical Funds Company and MMA Praxis Mutual Funds late last year.