One of the world’s largest pension funds has rejected accusations that, as an ethical fund, its emphasis on ethical investments may have compromised its search for capital growth.
The Government Global Pension Fund, which is the state pension investment fund of Norway, had made news at the beginning of the year, when it pulled out of investments in certain companies due to their connections to the tobacco industry.
The criticism, by leading Oxford ethical fund researchers, described the exclusive ethical investment strategy of the Norwegian investment fund as ‘self-defeating’.
Speaking for the managers of the ethical fund, special adviser Trude Myklebust said the investment fund will continue to refine its approach to ethical investments, moving from evaluating companies on a simple ‘do no harm’ basis to demanding a more proactively ethical stance.
The investment fund has, however, declined to exclude Israeli companies from its portfolio, following the recent attacks on ships carrying aid to Gaza, according to the Norwegian Finance Ministry.
Ethical Funds Investments
Ethical funds investments are a relatively new area of the funds industry, but offer investors a great opportunity to combine their ‘green’ investment philosophy with ethical investments that represent a real vote for more responsible environmental practices.
Interest in ethical investment is growing extremely rapidly in the UK. The ethical investment fund watchdog EIRiS reveals there is currently £7bn invested in ethical funds in Britain, compared to £1.5bn ten years ago.
Seventy per cent of people in Great Britain strive towards ideals that are green and ethical, and 49% of people with savings and investments would like to make a difference with their money, according to EIRIS.
Principle First offers a range of ethical funds investments, including an ethical investment in cleantech, alternative energies and wind power through the IMPAX Environmental Leaders Fund, or the ‘greenest’ ethical fund of all, a direct ethical investment in the forestry sector through the Quadris Environmental Fund.
Are you interested in ethical investments or in learning more about our ethical portfolios? Make an investment fund enquiry now or ring 0800 678 5929
