Ethical funds faring less well over the short term

By Helen Warrell, Third Sector, 30 April 2008

Charity funds that invest ethically have underperformed by about 0.5 per cent below the FTSE All-Share Index in the past five years, according to new research by WM Performance Services.

The figures, which are discussed in WM's annual review of charity funds for 2007, show that funds that excluded tobacco, aerospace and defence, beverages, restaurants and bars or gambling lost out over both three and five-year periods. This loss in the short term is because both tobacco and aerospace and...

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