Ethical funds offer good value

Prudential and Sarasin are convinced UK stocks pursuing an ethical policy do produce higher returns than the market. Prudential Portfolio Managers is now screening all potential UK equity investments taking into account social and environmental factors while Sarasin's own research suggests companies can produce a systematically higher return than the overall market by pursuing a green approach. Christoph Butz, an analyst with Sarasin, said: "Our findings lead to the conclusion that efficient use of resources and avoidance of environmental risks helps to reduce costs, while more environm...