The idea investors have to sacrifice returns for ethical considerations is a myth, according to Jewson Associates.
In a report on ethical (SRI) funds for Oxford University, the investment consultancy studied UK registered funds – particularly UK equity – over a ten year period to 2008. The firm found there was no “permanent or inherent cost” in taking an ethical stance, but there was a small price to pay in terms of slightly higher volatility or risk. It also found a close correlation between ethical funds and small and mid cap offerings in terms of performance and volatility. “SRI funds have sometimes laboured under the misconception that investors sacrifice returns if they choose to invest in funds...
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