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Ethical fund sales top off bumper year for UK

Ethical_investmentsUK ethical funds recorded their best-ever inflows in a record-breaking year for the wider British funds industry.

According to the Investment Association’s (IA) monthly statistics of UK investor behaviour, over £1 billion (€1.12 billion) of net retail money flowed into ethical funds last year.

Funds under management in this category were £15.4 billion at the end of the year, meaning ethical funds represented a 1.3% UK market share.

The figures reflect a wider trend seen in recent years for investors to reward responsible investment strategies.

The IA said sustainable investment was becoming an increasing priority and that the trade body would launch a sustainability and responsibility policy group.

Overall net sales into UK authorised funds of all kinds reached £63 billion last year, while funds under management ended 2017 at an “unprecedented” £1.2 trillion.

Chris Cummings, chief executive of the IA, described the year as “record breaking”, with funds under management up by £181 billion on the previous year.

He said that £63 billion came from net sales and £118 billion through investment growth, which was equivalent to a 10% return to investors.

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