Ethical / Socially Responsible

Introduction to Ethical / Socially Responsible

Socially responsible/ethical funds invest with a conscience. They loosely divide into 'dark green' and 'light green' funds. Dark green funds specifically exclude companies that derive their profits from areas such as armaments, pornography, tobacco or fossil fuels, though the specific criteria will vary from fund to fund. 'Light green', 'engagement' or 'socially responsible' funds will not specifically exclude companies, but instead will strive to engage with companies to improve their behaviour or invest positively in companies that are making a difference.

Inevitably, darker green funds have a smaller universe of stocks from which to pick. This can make them more volatile than a standard equity fund. However, as 'ethical' companies become larger and more mainstream, these risks have diminished. Light green funds have a broader universe, but may still have some bias to smaller companies.

In general, investors will not seek out socially responsible/ethical funds for purely investment reasons, though there can be some important risk mitigation from investing ethically. Investors need to ensure that the fund's definition of ethical matches their own.

The tax treatment of investments is subject to tax law and HMRC practice which are subject to change. 

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
7IM Sustainable Balance C Acc5.7423.6945.5279.001.90Buy
AXA Ethical Distribution Z Acc10.6526.3654.02221.272.00Buy
Aberdeen Ethical World Equity I Acc13.4024.4051.12155.140.90Buy
Aberdeen Multi Manager Ethical Portfolio I Acc12.6443.3788.1962.120.20Buy
Aberdeen Responsible UK Equity I Acc11.6123.3752.2823.862.10Buy
Alquity Indian Subcontinent R GBP29.3372.91-33.14-Buy
BMO Responsible Global Emerging Markets Equity R GBP20.8541.1147.47137.90-Buy
Candriam SRI Equity Emerging Markets R UnHedged Acc GBP23.86--204.36-Buy
Climate Assets B Acc9.4536.9467.3653.922.48Buy
F&C Responsible Global Equity 2 Acc18.9961.20108.98333.890.80Buy
F&C Responsible UK Equity Growth 2 Acc14.3732.9183.01394.962.00Buy
F&C Responsible UK Income 2 Acc10.4129.1172.18324.453.10Buy
FP WHEB Sustainability C Acc14.7751.0297.33167.000.11Buy
Guinness Alternative Energy X GBP-0.06-12.2451.709.39-Buy
Henderson Global Care Growth I GBP17.9353.20115.87577.460.60Buy
Henderson Inst Global Care Managed I Acc9.9432.8175.82262.451.40Buy
Impax Asian Environmental Markets X GBP18.41--47.10-Buy
Impax Environmental Leaders A GBP17.73--9.00-Buy
Impax Environmental Markets X GBP15.72--146.80-Buy
Impax Environmental Markets A GBP15.3649.77101.53146.80-Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
7IM Sustainable Balance C Inc5.7723.7445.5779.001.90Buy
AXA Ethical Distribution Z Inc10.8026.3754.02221.272.03Buy
Aberdeen Ethical World Equity I Inc13.3924.3551.10155.140.90Buy
Aberdeen Multi Manager Ethical Portfolio I Inc12.6443.3888.1962.120.20Buy
Aberdeen Responsible UK Equity I Inc11.6223.3652.3023.862.10Buy
BlackRock GF New Energy D4RF GBP14.7741.6389.041,173.43-Buy
Castlefield B.E.S.T Income Inst Inc7.1819.8350.3627.443.88Buy
Castlefield B.E.S.T Income Charity Inc7.1719.8250.4827.443.88Buy
Climate Assets B Inc9.4236.9067.4153.922.53Buy
EFA Eden SRI B Inc5.9622.15-5.492.12Buy
EFA Eden SRI A Inc5.7421.43-5.492.12Buy
EdenTree Amity European B28.8053.80121.9390.541.98Buy
EdenTree Amity International B16.4932.0671.71222.931.83Buy
EdenTree Amity Sterling Bond B5.2115.1934.61110.344.59Buy
EdenTree Amity UK B9.7425.8169.48147.532.08Buy
F&C Responsible Global Equity 2 Inc19.0061.08108.87333.890.70Buy
F&C Responsible UK Equity Growth 2 Inc14.3432.7082.79394.961.90Buy
F&C Responsible UK Income 2 Inc10.3829.0672.03324.453.80Buy
FP WHEB Sustainability C Inc14.7851.0092.96167.000.83Buy
Henderson Global Care Growth I Inc17.9753.28115.89577.460.60Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Impax Environmental Markets Ord 10P19.5664.03166.50-9.71269.14Buy
Jupiter Green Investment15.9529.8694.81-5.24191.00Buy
Menhaden Capital Plc ORD 1P15.52---24.0488.21Buy
Syncona Limited Ord NPV25.8842.59-13.45139.89Buy
Tejoori-5.00204.00-24.00--Buy
Trading Emissions PLC132.80111.24259.97--Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
Lyxor UCITS ETF WORLD WATER D GBP7.418.0160.26-GBXCommodity & EnergyBuy
UBS ETF - MSCI EMU Socially Responsible UCITS ETF (EUR) A Dis GBP18.1927.0462.45112.19GBXEquity - Europe ex UKBuy
UBS ETF - MSCI World Socially Responsible UCITS ETF (USD) A Dis GBP4.1816.2650.31-GBXEquity - EthicalBuy
UBS (Irl) ETF plc - MSCI United Kingdom IMI Socially responsible UCITS ETF A Dis4.759.98--GBPEquity - UKBuy
iShares Dow Jones Europe Sustainability Screened UCITS ETF GBP11.7217.5634.3483.98GBPEquity - Europe inc UKBuy
iShares Dow Jones Global Sustainability Screened UCITS ETF GBP3.5817.2843.5688.73GBPEquity - EthicalBuy
iShares Global Clean Energy UCITS ETF GBP-0.370.524.9375.78GBPCommodity & EnergyBuy
iShares Sustainable MSCI Japan SRI EUR Hedged UCITS ETF GBP10.1525.60--GBPEquity - JapanBuy
iShares Sustainable MSCI Emerging Markets SRI UCITS ETF GBP7.8418.08--GBPEquity - Emerging MarketsBuy
iShares Sustainable MSCI USA SRI UCITS ETF GBP0.0514.80--GBPEquity - USABuy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Foresight Solar & Infrastructure VCT PLC C ORD 1P4.43-2.54-91.30-9.646.06VCT Specialist EnvironmentalBuy
Foresight Solar & Infrastructure VCT PLC D---97.502.56-VCT Specialist Environmental Pre QualifyBuy
Foresight Solar & Infrastructure VCT PLC Ord 1P5.543.4136.69104.30-10.356.42VCT Specialist EnvironmentalBuy
Hazel Renewable Energy VCT1 PLC A Shs 0.1P-0.508,668.410.104,950.00-VCT Specialist EnvironmentalBuy
Hazel Renewable Energy VCT1 PLC Ord 0.1P5.6320.5183.28116.40-7.654.65VCT Specialist EnvironmentalBuy
Hazel Renewable Energy VCT2 PLC A Shs 0.1P-0.508,668.410.104,950.00-VCT Specialist EnvironmentalBuy
Hazel Renewable Energy VCT2 PLC Ord 0.1P1.4116.2876.83115.50-10.824.85VCT Specialist EnvironmentalBuy
Octopus VCT 3 PLC ORD 1P-11.62-7.95-14.9573.50-8.167.41VCT Specialist EnvironmentalBuy
Octopus VCT 4 PLC ORD 1P-11.62-7.95-14.9573.50-8.167.41VCT Specialist EnvironmentalBuy
Triple Point Income Vct Plc Ord 1P15.5068.8587.6670.09-28.6610.00VCT GeneralistBuy
Ventus 2 VCT PLC D SHS 25P14.8226.42-132.20-9.231.25VCT Specialist EnvironmentalBuy
Ventus VCT14.0160.25137.27114.60-5.767.41VCT Specialist EnvironmentalBuy
Ventus VCT 214.6751.31187.0581.00-12.967.09VCT Specialist EnvironmentalBuy
Ventus VCT 2 C25.5245.2579.05130.80-9.026.72VCT Specialist EnvironmentalBuy
Ventus VCT C25.5245.3285.39129.70-8.256.72VCT Specialist EnvironmentalBuy
Ventus VCT PLC D SHS 25P14.8226.42-131.50-8.751.25VCT Specialist EnvironmentalBuy

Disclaimer

Interactive Investor does not endorse any particular product. If you are unsure about whether an investment is suitable for you please seek advice from a financial advisor.