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 ?
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 said.
We thought an ethical fund was the right place to invest because we are concerned about our children's future.
Earlier this year they closed the ethical fund and moved my money into a UK equity fund.
The recent row over BAE Systems' sale of an air-traffic control package to Tanzania highlights why the company is often excluded from ethical fund portfolios.
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.
Kenya has licensed its first ethical fund, an Islamic fund issued by First Community Bank Capital, a subsidiary of First Community Bank (FCB), one of the two Shari'ah-compliant banks in Kenya
Q I AM considering investing in an ethical fund to avoid companies that pollute the environment, but how do they decide on which companies to invest in?
The first thing you should remember when assessing the social, environmental and overall ethical performance of a company or an ethical fund is there is no such thing as a perfect company.
In 1983, Friends Provident ( a life insurance firm founded by Quakers ( set up the first so-called ethical fund in the UK, with the investment criteria determined by a separate committee.
But at present only one ethical fund is available in the Republic through a major financial institution - the Friends First Stewardship Fund.
He said Spirit was currently working on two property funds - one without gearing designed for an IFA firm looking for low-risk investment, and the other is an ethical fund with social housing for the most vulnerable in society.