Ethical Performance
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Ethical funds outperform non-ethical rivals

September 2013

The past 12 months have been a notable period for ethical fund performance with the average ethical fund posting gains of 24% compared with 18% growth from the average non-ethical fund.

The latest survey from Investment Life & Pensions Moneyfacts survey examined the performance of ethical funds, conventional non-ethical funds, index trackers and the FTSE 100 over a number of investment periods.

It also compared ethical funds within the three IMA sectors that contain the most ethical funds.

Ethical funds have also outperformed UK Index Trackers (23%) and the FTSE 100 (18%).

Richard Eagling, head of investments and pensions at Moneyfacts, said: “Ethical funds have clearly benefitted from their lack of exposure to ‘unethical sectors’.”

Over three years ethical fund returns have also edged ahead of non-ethical funds, with the average ethical fund up by 36% compared with growth of 31% from the average non-ethical fund. However, after five years there is very little difference in performance levels.

Comparing ethical funds within the three IMA sectors that contain the most ethical funds (£ Corporate Bond, Global and UK All Companies) shows that in each case there is only a small gap between ethical fund performance and their non-ethical peers.

For instance, over 10 years the average Global ethical fund is up by 127% compared with growth of 131% from their non-ethical peers. 




Moneyfacts | UK & NI Ireland | SRI

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