Financial Performance Of Ethical Investment Funds

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Student Number: ………1332034…………………………………………… Programme:……MSc. Finance and Risk………………….. Module Code:……MK7227……………………………………………………….. Proposed Dissertation Title:…… ……… The Financial performance of ethical investment funds ………………………… Turnitin ID:……………………………………………………………….. Introduction Ethical investment funds are spreading all over the world and research investigation on it undertaken small number of ethical of the UK and US ethical funds. For example in 2010 UK ethical investment hits record high of £9.5 billion, which represent the approximately three quarters of a million investors in ethical funds. (EIRiS News Release London, 1 June 2010). In this study considers ethical and conventional investment funds in Europe from…show more content…
The same also applies to many purported ethical investors are investing in unethical companies or fund the ethical ones as well, and the reasoning behind this is to diversify the portfolio, which would reduce the volatility of risk exposure. Many empirical studies have been published in the recent years to find out financial performance of ethical funds is significantly better or worse than conventional funds. Mallin, et al- studied the performance of ethical funds in the UK from the period of 1986 to 1993, their results suggested that both types of funds underperformed the FTSE all share price index. Geczy et al – carried a study on the investing in socially responsible mutual funds in the United State from the 1963 to 2001 and results suggested that ethical funds underperformed the market compared to the conventional funds. Kreander, et al - Evaluating the performance of ethical and non-ethical funds: A matched pair analysis looking at it from 1995 to 2001 and using the treynor, Jensen and Sharpe it indicated that funds underperformed and in conclusion the performance of ethical and non-ethical funds were similar. Research Questions: • Is there a difference between ethical funds criteria in the UK, Australia and Europe? • Do ethical funds outperform the conventional funds? • The risk associated
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