A raft of private investors are dumping ethical funds from their portfolios over claims that 'ethical' labels have become little more than nifty sales hooks.
Independent financial advisers claim the ethical investment market, which has almost trebled in size over the last decade, is clogged with a growing number of 'disillusioned' investors who have bought the funds while under the impression they are more ethical than they are in reality.
And fears some ethical funds are only 'half-baked' are being crystallised as major investment houses are embarking on a fresh headcount cull in their ethical arms - making managers and researchers redundant so they can run ethical funds on a shoestring.