Classifying funds by their ethics would be a bad move as it would allow poor managers to mask their results while good managers would not be recognised
From time to time industry bodies with responsibility for the classification of funds are asked to create a specialist sector - mainly for ethical funds. The aim of this would be to remove them from the broader investment sectors set up on the basis of asset allocation or geography, and classify them on the basis of ethics. This was extensively debated by the Association of Unit Trusts and Investment Funds - now the Investment Management Association - back in 1999 and has been revisited by the Association of British Insurers (ABI) over recent months. The concept has certain attractions: ...
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