Winning ethical investing

The success of an ethical fund depends on a manager's stockpicking skills rather than any screening process

As the price of oil has hit record highs this year, up more than 70% since January, one might ask if ethical funds have been forced to sacrifice returns by operating in a restricted universe that excludes oil stocks. It's a question worth posing given the recent announcement that Shell Transport & Trading and Royal Dutch Petroleum are to restructure as one listed entity. Once this happens, the combination of BP and Royal Dutch Shell will account for between 15% and 20% of the FTSE All-Share Index. First of all, contrary to widespread perception, most ethical funds are not excluded from i...