
Green Investment Lag
According to research from Virgin Money, 51 per cent of advisers said clients are not willing to accept a performance lag with environmental investing compared to 37 per cent who said clients are prepared to suffer for their consequences. Some 69 per cent of advisers believe green and environmental funds can compete with mainstream funds and deliver strong performance.
Virgin Money said its Climate Change fund, launched in January aims to achieve high performance by investing in companies with a lighter than average environmental footprint. The Climate Change fund aims to show investors that they an out perform so-called mainstream and be better for the environment.
Our view
Surely this is a question for investors rather than advisers. Many investors do appreciate the opportunity for ethical investment. The performance of ethical funds is not dissimilar from other stockmarket investments and climate or other funds will do well in the longer term.
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