by our investment partners, Investasure Financial Services Ltd.

[Editor's note - Expatriates often struggle to find the right investment vehicle for their money, a task made more complicated by the various taxation and legal requirements of different countries. In recent years another element has been thrown into the mix: ethics. The following article, written by our own independent financial advice partner, explores the history of this new "style" of investment.]

Ethical investment has long been regarded as a 'minority interest' by investors but during the last few years this has changed due to the rapid growth experienced in this sector.

This growth and interest is due to the fact that this form of investing is now considered a most 'attractive investment option' for the discerning investor. But what is ethical investing and why has it become so popular?

Our research and findings indicate that the roots of ethical investing date back to the nineteenth century and the concerns of religious groups over investing in companies involved in alcohol and gambling. However, since then, the ethical investment ideology has continued to gain strength.

The Pax World Fund was launched in America in 1971, with the aim of avoiding investments associated with the Vietnam War. The UK's first ethically screened unit trust was launched by Friends Provident in 1984. Now, the modern investor can pick from an extensive range of ethical funds, each offering a different ethical policy.

In July 2000, new pension regulations meant that pension fund trustees were obliged to disclose their policies on ethical investments and individual investors have also taken an interest in all things 'green'. In October 2000, the Cooperative Bank found that roughly one in six shoppers frequently either bought or boycotted products because of a manufacturer's reputation. In effect, ethical concerns could be backed, at a conservative estimate, by billions of pounds of consumers' money. And, as investors have become increasingly sophisticated, their demands for socially responsible investment funds have increased.