Ethical investing not equal to poor performance, says Kames Capital
Kames Capital, one of the UK market’s biggest providers of ethical investments, believes that investors mistakenly felt they needed to sacrifice performance in order to stick to ethical principles over the past three year period.
Its view is based on a review of the performance of its own ‘dark green’ Ethical Equity and Ethical Cautious Managed funds. These have out-performed mainstream rivals in their respective sectors over the short, medium and longer terms, the manager said.
According to data from the UK Investment Management Association’s UK All Companies sector, Kames’ Ethical Equity fund is ranked first quartile over one, three and ten years, and second quartile over five years and since its launch in April 1989.
The Kames Ethical Cautious Managed fund which is in the UK IMA Mixed Investment 20-60% shares sector has achieved first quartile ranking over one, three and five years. The Kames Ethical Corporate Bond fund is second quartile over three years, the manager adds
The performance comes despite the commitments to ‘dark green’ investing, which means the funds are excluded from investing in companies which do not meet strict criteria, effectively limiting the funds to about 30% of the FTSE 100 based on market cap.
Kames’ head of retail sales Steve Kenny said: “Our funds have long disproved the myth that you need to sacrifice performance to stick to your ethical principles, as they have demonstrated with their consistent performance. We are firmly committed to the ethical market and see it as an increasing part of our business going forward.”