Ethical funds' sales are set to double in 2007 predicts Fidelity FundsNetwork, while the IMA reports ethical funds under management have passed £5bn for the first time.
Sales on the FundsNetwork platform are already up 83% in the first four months of the year, compared to the same time period in 2006.
If the current rate of growth continues, sales for 2007 are set to be more than double that of sales for last year, says Fidelity.
Meanwhile the Investment Management Association reports ethical funds under management in the first quarter of 2007 saw an increase of 8% from the previous quarter and 21% from the first quarter of 2006.
Funds under management topped £5bn for the first time, IMA reveals. Net retail sales of £99.8m were almost double those of the fourth quarter in 2006, and were three times higher than the same quarter in the previous year.
“Ethical funds were off to a good start in 2007, passing the £5bn milestone in the first quarter and seeing net retail inflows of £100m, the highest for almost five years,” says Richard Saunders, chief executive of the IMA.
FundsNetwork says the F&C Stewardship Income Fund is the most popular ethical fund, while Aegon and F&C are the most popular ethical fund providers, with two funds each in the top ten.
“Our analysis implies that sales of ethical funds for 2007 are set to eclipse those of 2006, and that they are becoming an increasingly popular choice for ISA investment,” says David Dalton-Brown, head of FundsNetwork.
“With an increasing emphasis placed on looking after the world and its resources, it’s not surprising that the popularity of ethical funds continues to grow, and it’s a trend that we expect to continue.”
If you would like to comment on this story or speak to its author, telephone Simon Read on 0207 034 2680.IFAonline
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