ethical fund

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Ethical fund

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Some mutual funds in Nigeria actually have ethical funds that invest only in investments with high moral standards.
Today, there are a growing number of ethical funds that offer an increased level of diversification which is an important factor of investing, but choosing only ethical investments is limiting and so could potentially have an automatic increased risk level.
Interactive investor picks some of the funds and trusts worth considering as investments for children, from ethical funds to some of the original collective investments.
Once the preserve of SRI and clearly denominated ethical funds, most leading financial institutions have started to adopt exclusion policies on climate change and carbon, the environment and social governance.
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.
Kamran Butt, Managing Director at SEDCO Capital, participated in the panel discussion entitled 'Responsible Investing: The Shift towards Green Finance, ESG & Ethical Funds', alongside executives from the Luxembourg Stock Exchange and other global institutions.
On the broader market, a number of asset management companies such as Taurus Mutual Fund and Tata Mutual Fund offer Shariah-compliant investment schemes in India, not specifically marketed as "Islamic," but as "ethical funds" in order to appeal to non-Islamic investors as well.
EDINBURGH and London-based Kames Capital, which manages PS2.3bn in specialist ethical funds has won awards for its socially responsible investment management.
On the one hand, the growth potentials for ethical funds of Western and Islamic orientation seem worth pondering from a Lebanese perspective because the outlooks and descriptions have become less propagandistic when compared with some hyped-up conferences and reports 10 years ago.
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.