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Ethical Investment

Discussion in 'General Investing Discussion' started by scys, 1st Jun, 2008.

  1. scys

    scys Member

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    31st May, 2008
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    What is the difference between ethical investment industry and ethical investments?

    Thanks.
    :confused:
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    I would imagine that the "ethical investment industry" are those fund managers and investment managers who create products to invest in "ethical investments".
     
  3. Tropo

    Tropo Well-Known Member

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    17th Aug, 2005
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    Location:
    NSW
    http://www.ipa.org.au/files/review54-3 ethical investment.pdf


    The evidence suggests that ethical
    funds generally under-perform when
    compared with the market because
    they restrict their choice to a narrow,
    and therefore riskier, range of investments.
    Moreover, there is no indication
    that the ethical screens proffered
    by ethical funds identify better
    managed or less risky firms.
    The debate over performance is
    clouded by the impossibility of defining
    a core, let alone a unique, set
    of ethics that could be used to identify
    objectively an ethical fund. ‘Ethical’
    funds do not exist as a separate
    class.
    Most Australian funds could
    justifiably claim to be ethical. Selfdescribed
    ethical funds are no more
    than personal preference investment
    vehicles.
     
  4. arandomperson

    arandomperson Member

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    31st May, 2007
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    Location:
    Melbourne
    I use Hunter Hall and Australian Ethical Investment, but also index funds and direct ownership in funds. I am happy with their approach. Obviously one persons idea of ethical may differ from anothers, but the funds explain their approaches in their PDS, for example I like the type of companies that Australian Ethical invest in but do not have the time to do the research to find the info they have.