He says: “If ethical funds were as flaky as people have made them out to be, then over the last 18 months you would have expected them to have gone down the drain. That has not happened and they have stood up really well to the difficult market.” Financial Express figures show that Aegon’s ethical equity fund is down by 30.5 per cent against a median of 30.7 per cent over one year as at March 31. Although Jupiter’s ecology fund is down by 26.5 per cent against the sector average of 23.3 per cent over the same period, it outperformed the average by 7.6 per cent over three years.
McBreen says: “There is interest from 25-40-year-olds who may not want to invest in corrupt companies.”
Discretionary fund manager Parmenion sales director Paul Miles says: “I think the ethical fund market is really going to increase and the next generation of people will support this.”
Hargreaves Lansdown senior analyst Meera Patel says: “Ethical funds are not a major seller but that does not mean they are not good investments as some of them have proven.”