A preliminary investigation into the performance of ethical investment funds
type: CreativeWork
description: A common argument against ethical investment is that it earns lower returns than conventional portfolios and is thus contrary to the fiduciary responsibility of fund trustees. The theoretical base for this assertion is that ethical investment reduces the investment universe. Little, if any, importance has been attached to the financial performance of socially responsible firms, and whether superior performance negates the reduction in investment possibilities. This study shows that ethical funds do not necessarily underperform, and in fact, in many cases have outperformed similar conventional funds. The criteria applied by these funds are examined and some economic justifications for the success of such funds are suggested. Successful funds could form the basis for RDP targetted investments in South Africa.
abstract: A common argument against ethical investment is that it earns lower returns than conventional portfolios and is thus contrary to the fiduciary responsibility of fund trustees. The theoretical base for this assertion is that ethical investment reduces the investment universe. Little, if any, importance has been attached to the financial performance of socially responsible firms, and whether superior performance negates the reduction in investment possibilities. This study shows that ethical funds do not necessarily underperform, and in fact, in many cases have outperformed similar conventional funds. The criteria applied by these funds are examined and some economic justifications for the success of such funds are suggested. Successful funds could form the basis for RDP targetted investments in South Africa.
author: Halton, Laura
language: eng
date published: 1996
date modified: 2026-07-22T22:23:23Z
provider: University of Cape Town
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: GSB: Faculty

PropertyValue
property ID: Handle
value: http://hdl.handle.net/11427/9486