The critics say that ethical funds are not transparent enough to convince investors they are genuinely “green”, or that the screening process limits the number of companies available to ethical fund managers, and therefore hampers their ability to maximise returns.
If we consider an ethical investment as a means of bringing about real progress in, for instance, developing renewable energies, we raise an important question.
It has been said that, pound for pound, the oil giants invest more money in researching alternative energies than smaller “boutique” companies specialising in wave energy or wind power and, therefore, Texaco and BP have a right to be included in our ethical investment portfolios as well.
Principle First’s ethical investment portfolio
The Principle First Ethical Investment Portfolio V1 has been selected on the basis of available information on underlying investments, combined with our stringent requirements regarding (low) risk and high performance.
The ethical investment portfolio consists of the following four funds:
- Amity International Fund, managed by Ecclesiastical Investment Management
- Asia Pacific Sustainability Fund, managed by First State Investments UK Ltd.
- Henderson Global Care Growth Fund, managed by Henderson New Star
- Henderson Industries of the Future Fund, managed by Henderson New Star
Our criteria for selecting these investment funds is:
- Funds are UK unit trusts or OEICs
- Have an ethical investment / sustainable investment focus
- Have existed for at least 3 years
- Have a Crown performance rating of 2 crowns or more
- Have a 36-month bid-bid performance greater than 0 i.e. have increased in value over 3 years
- Have a fund manager who has been in place for at least 3 years
- Have ranked in the 1st quartile (i.e. top 25% of funds in their sector) over 3 years
As the United Nations climate change conference proceeds in Copenhagen until December 18th, interest in things ethical will be at a high. What better time to contact Principle First for advice on ethical investments – here online, or by ringing 0800 678 5929.
This sounds like an excellent and well researched fund. Can you tell me what your ‘green criteria’ are? I know a lot of us ‘green investors’ really want to know where we should be putting our money to encourage real change. Keep up the good work.
Too many companies using ethical theme to attract money. When speaking to ethical motivated investors, I find that they are happy to get less of a return, as they feel they are contributing toi society in a positive fashion.
Not good enough, consumers should be keen to get a good return on ethical based investments, and put pressure on the relevant fund managers. After all the investments that these managers should be making are based on industries of the future, where there should be a very competitive return. The debate continues…