Comic Relief chief executive Kevin Cahill, speaking on BBC Radio 4's World At One, accepted that Comic Relief had a "small percentage" of cash in areas such as tobacco and arms firms through managed funds.
"There's no more than 5 percent of our funds in those particular areas," he said.
After being told ethical funds had outperformed FTSE 100 companies index over recent periods, he said: "Our trustees were acting in good faith in what they were doing.
"It's very good to hear that, in fact, the potential exists within ethical funds to match the return because Comic Relief would clearly choose to be in those if the return was equal or better to where we currently are so it's a no brainer for us to be in those funds."
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