Ethical investment funds won’t come clean on methods
Half of all ethical investment funds failed to meet the ethical disclosure requirements contained in the Financial Services Reform Act. A study funded by the Australian Council of Super Investors, Macquarie University and Reputex, found that fund managers believed the extra disclosure was not a business priority. Investment managers are required to make “product disclosure statements” showing the extent to which labour standards or environmental, social or ethical considerations are taken into account in the selection of an investment. The study found that eight of the 16 managers offering 42 different products worth over $2 billion did not comply with the guidelines.