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Ethical investors to rise by 18 per cent in 2009

20th May 2009 Print
New research from The Co-operative Investments reveals that 18 per cent more people intend to invest ethically this year, confirming the financial crisis will lead to growth in green investments.

Further evidence of an increase in consumer appetite for ethical investments following the credit crunch is shown through other industry statistics:

The Co-operative Investment's own ethical fund - Sustainable Leaders Trust - has seen an almost identical hike in unit growth throughout 2008 of 16 per cent and this has continued during 2009.
According to latest IMA figures, retail inflows into ethical funds have now exceeded outflows for each of the fourteen months since February 2008 despite the financial crisis.

Zack Hocking, head of investments at The Co-operative Investments said: "The financial crisis appears to have encouraged investors to think not only about how much money they make, but importantly, how it is made.

"The focus of ethical funds to seek out stocks with responsible and sustainable business models has made them an increasingly more attractive proposition to investors.

"Many ethical funds have now proven that they can deliver performance in line with the very best unit trusts in the market, while helping to bring about positive change in society."

Ethical funds currently represent just one per fund of overall UK funds under management.

The Sustainable Leaders Trust invests in around 50 small, medium and large companies, mainly based in the UK, that contribute to the environment, human welfare and sustainability whilst avoiding sectors with a negative social impact such as armaments and tobacco companies.

Over five years, the fund has provided a return of 28.63 per cent, beating both the FTSE All Share (15.49 per cent) and UK All Companies Sector average (9.66 per cent).