Ethical investment increasingly means receiving good returns

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Ethical investing is conducted by means of negative screening, which involves the exclusion of unacceptable funds, or shareholder engagement, whereby managers and clients use their status as shareholders to influence company behaviour

Investors seeking strong returns are increasingly turning to ethical funds, despite the myth that screened funds cost investors money. A belief persists that ethical, or socially responsible funds, are compelled to underperform when in fact the reverse is often true. Some ethical funds are supported by figures that show them to be top performers, yet the myths surrounding these funds can be hard to shift. However, in looking at why their negative profile is largely undeserved, it is important to realise that ethical investing means different things to different people. Broadly speaking, t...