People who invest in socially responsible funds can easily find out how their portfolios have performed financially, but historically it has been very hard for investors to get clear information on the social and environmental benefits of their funds’ holdings. That is changing with the growth of ‘impact investing’, which aims to generate measurable societal benefits as well as financial returns.
Low-cost investment manager Vanguard has launched two ethical funds for retail investors.
Ethical funds have failed to keep up with their non-ethical counterparts over the past 12 months, as they struggled to make money in the financial crisis.
Tracker funds have enjoyed the highest net sales on record during the first three months of this year, according to the Investment Management Association.
Net retail sales reached £824 million from January to March.
When plans for the creation of Britain's first Green Investment Bank were announced in March the reactions were as mixed as the details confused.