Fears over ethical fund performance overstated

Fears about continued outperformance from oil and tobacco stocks negatively hitting ethical funds in...

Fears about continued outperformance from oil and tobacco stocks negatively hitting ethical funds in 2003 are overstated, with the UK market more likely to be stock-specific rather than sector-led. The driver behind the performance of many ethical and socially responsible investment funds is the movement of the small and mid-cap markets, with much of the FTSE 100 screened out. Yet large-cap tobacco stocks were the second strongest performing sector in the FTSE All-Share over the course of 2002 due to their defensive nature, posting growth of 20.53% over the calendar year, compared ...