ONLY two large Irish-based companies offer "ethical investment", and neither fund has proved particularly popular. In Britain, however, socially and environmentally responsible investment has become common in recent years, with dozens of firms and brokers actively marketing such funds.
Friends Provident allows ordinary customers in the Republic to choose to invest their money in a basket of ethically-approved companies. Shares held in its Stewardship Fund are spread across Ireland, the United States and Britain, with roughly one third in each country. In the 12 months to the end of September, it gave a return of 12.5 per cent, compared to a gain of 13.4 per cent in Friends Provident's mixed fund.
ChariEthical, another Irish-based ethical fund, run by AIB Investment Managers, is limited to investments by churches and charities, and is currently said to hold about £11 million. The fund returned 11.8 per cent in the year to the end of September, compared to 11.9 per cent in an unconstrained fund.