Ethical investment: Which way is the wind blowing?

For years, ethical investment funds were seen as the preserve of hippies or religious nuts. Now though, increasingly impressive returns have caught the attention of mainstream investors. But have ethical funds gained enough momentum to really change the investment landscape? Dalia Fahmy reports

Something is changing in the US world of socially responsible bond investing. For years, socially responsible funds - funds that only invest in companies that meet certain ethical standards - were considered the awkward cousins of the investing industry. Their returns often lagged behind the broader market, and outsiders stereotyped their managers as prim religious conservatives.

Now, the sector is quietly booming. Socially responsible invested assets in the US have reached $2.7 trillion

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