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Dangers in sub-par ethical investments
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Not-for-profit organisations have been warned against investing their funds with ethical fund managers generating sub-par returns.
The chief executive of the Unit Church’s investment services arm, UCA Funds Management, Graeme Rough, said money raised by not-for-profit organisations was too hard-won to be simply parked in a low-yielding investment.
He said sub-par ethical returns could pose as much risk to the financial wellbeing of not for profit organisations as non-ethically gained returns.
Rough said charitable organisations were open to a higher level of scrutiny from the community, and could not withstand the scandal associated with investing their working capital in companies with unscrupulous or questionable practices.
“Further, most do not have the expertise to know how to maximise the return on their investments and consequently often leave it in low-yielding accounts offering negligible interest,” he said.
AUTHOR
Mike Taylor
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