Investors do not need to go against their ethical principles in order to get competitive investment returns according to Kames Capital.
Kames, which is one of the UK's leading providers of ethical investments, says that in the past there was a mistaken belief among investors that they potentially needed to sacrifice some of their investment performance in order to stick to their ethical principles, but the fund manager says that theory has now been firmly disproved.
Kames highlights how both its Ethical Equity and Ethical Cautious Managed Funds have consistently out-performed main stream rivals in their respective sectors over the short, medium and longer terms.
The Kames Ethical Equity Fund which falls into the UK All Companies Sector, is currently 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 Mixed Investment 20-60% shares sector has achieved first quartile ranking over one, three and five years. Whilst the Kames Ethical Corporate Bond Fund is second quartile over three years.**
Kames, which earlier this year reaffirmed its commitment to ethical investment following the withdrawal of several rivals from the market, runs its ethical funds on a ‘dark green' basis. This means it is excluded from investing in companies which do not meet these strict criteria. In effect this means Kames is only able to invest in approximately 30% of the FTSE 100 based on market cap.
Kames head of retail sales Steve Kenny says: ‘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.'
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