How To Develop A Vision To Ensure Success - Philosophy, Policies And Values

strong views about certain activities and decide that you are therefore not going to invest in certain companies. This is known as 'ethical investment'.

Your stockbroker will often be able to advise you about what the company actually does. Alternatively you can find out by writing to EIRIS (Ethical Investment Research and Information Service www.eiris.org).

The usual exclusions are those companies which manufacture arms, alcoholic drink or tobacco products, which operate gambling establishments, and which trade in South Africa. The Fellowship Trust invests in UK and overseas companies, the other two just in UK companies.

By excluding companies and thus limiting one's choice, it could be presumed that an ethical portfolio or unit trust would perform less well than an unrestricted portfolio. Curiously, ethical unit trusts have tended to perform slightly better. A suggested reason for this is that the extra attention given to the companies in general has resulted in wiser investment decisions.

Ethical portfolios can also include companies which are seen to be helping needy areas of society or helping relieve Third World poverty. The main public company is Traidcraft which markets goods produced in such countries. (see https://www.traidcraft.co.uk)

But only buy Traidcraft shares for ethical reasons not to make a profit.

In the United States, ethical investment is believed to account for 15% of all private investment, and still to be growing in importance. It is believed that ethical investment will become more popular in the UK also. (cu

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