Ethical investors 'still loyal to their funds'

Overall sales of ethical investment funds appeared to be positive during the second quarter of 2009, a new report has concluded.

A poll of its members carried out by the UK Sustainable Investments and Finance association (UKSIF) found that a majority had seen continued interest in ethical funds over the three months, with figures for the period expected to be positive when they are finally compiled.

This contrasts with a recent report from the Investment Management Association (IMA), which claimed that net retail sales of ethical funds fell into negative figures in the second quarter of 2009.

Explaining the discrepancy, UKSIF chief executive Penny Shepherd MBE said: ’IMA data would have shown positive net sales for the quarter if one fund had not returned assets to investors in June, according to our information from product providers.

’The closure caused an outflow that month after net inflows in both April and May

’Advisers need to look behind the quarter’s headline figures to get the true story. Ethical investors have remained loyal to their funds,’ she added.

The IMA figures showed, however, that retail flows into ethical funds exceeded outflows for each of the 14 months from February 2008.
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