The financial crisis was caused in part by a moral crisis in society, in which governments made promises they could not keep and bankers sold products to people they didn't understand, to fill their own coffers. In National Ethical Investment Week it is perhaps poetic justice that ethical funds in the UK have done better than the FTSE 100 (as demonstrated by the L&G FTSE 100 tracker) and we feel it is something that you should know about.
Below we show a chart showing performance of funds since the beginning of September 2008, the month in which Lehman's filed for bankruptcy.
In the table above we have shown the L&G FTSE 100 tracker to show the performance of the FTSE 100. This is not an ethical fund.
As you can see Sue Round at Ecclesiastical has shone above the competition, but the main ethical players have also beaten the market. At the moment the statistics lend weight to the argument that ethical funds do not underperform and it is something that all investors should know.
Mark Hoskin is a Partner at Holden & Partners. Holden & Partners are Chartered Financial Planners who provide financial advice to high net worth clients, the majority of whom have a significant interest in ethical or environmental issues.
Mark Hoskin graduated with a History degree from Keble College, Oxford and went on to become a Chartered Accountant with Price Waterhouse. He cofounded Holden & Partners in 2003 and is a Certified Financial Planner and Chartered Financial Planner. Holden & Partners set up Worldwise Investor to help both advisers and investors understand quickly and easily how they can benefit from ethical and environmental investment in the UK market.
The value of ethical and green investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks of investing. Our aim is to provide you with the best information we can to help you make decisions about ethical and green investments. It is not to advise you on the suitability of an investment to your personal circumstances. Nothing written on the site should be considered personal advice, nor do Holden & Partners accept liability for any inaccurate information on the site. If you are unsure about the suitability of an ethical and green investment please contact Holden & Partners or your financial adviser.