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Angry investors give ethical funds the boot

Are ethical funds really that ethical? A stack of fresh evidence suggests not all of them are as 'good' as they are claiming to be
Angry investors give ethical funds the boot

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.

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