What is really ethical?
Consumer advocacy group Choice has released new research that suggests some responsible investment funds aren’t quite as responsible as they make out.
Choice said it had investigated the managers of so-called responsible or sustainable funds and suggested that investors needed to read the fine print when choosing to invest their nest egg in a sustainable or ethical fund.
Choice provided as an example the fact that some superannuation funds allowed investment in uranium mining companies such as BHP Billiton and Rio Tinto into their green options on the basis that such mines produce material for energy and not nuclear bombs and because they get less than five per cent of their revenue from uranium.
Choice spokesman Christopher Zinn said that because there was no commonly agreed definition of “sustainable”, “responsible” or even “ethical” many of the top shareholdings of funds ended up being very similar to the shares held by ordinary investment funds.
“Consumers interested in the responsible investment sector should check a fund’s product disclosure statement for an explanation of its investment strategy and make sure that it fits in with their own views,” he said.
AUTHOR
Mike Taylor
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