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 Acc8.1722.0945.8868.781.50Buy
AXA Ethical Distribution Z Acc8.6621.3854.10204.042.40Buy
Aberdeen Ethical World Equity I Acc27.7224.2044.30149.491.10Buy
Aberdeen Multi Manager Ethical Portfolio I Acc22.0938.8579.1952.180.20Buy
Aberdeen Responsible UK Equity I Acc20.5716.1747.5621.032.30Buy
Alliance Trust Sustainable Future European Growth 2 Acc12.3527.0483.04153.711.59Buy
Alliance Trust Sustainable Future Global Growth 2 Acc16.2835.7184.42156.450.54Buy
Alliance Trust Sustainable Future UK Growth 2 Acc4.9623.1580.95231.451.88Buy
Alliance Trust UK Ethical 2 Acc1.5520.6179.69314.192.17Buy
Alquity Asia R GBP14.54--45.62-Buy
Alquity Asia Y GBP17.12--45.62-Buy
Alquity Future World R GBP18.24--5.96-Buy
Alquity Indian Subcontinent R GBP19.52--12.64-Buy
Alquity Latin America R GBP33.11--27.13-Buy
Alquity Latin America Y GBP35.40--27.13-Buy
Climate Assets B Acc18.9531.1668.9245.622.48Buy
F&C Responsible Global Equity 2 Acc20.8746.1198.49268.070.80Buy
F&C Responsible UK Equity Growth 2 Acc7.6524.0579.04354.412.20Buy
F&C Responsible UK Income 2 Acc3.8121.2372.96293.883.50Buy
FP WHEB Sustainability C Acc18.0140.7372.69121.000.15Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
7IM Sustainable Balance C Inc8.3022.2945.9368.781.50Buy
AXA Ethical Distribution Z Inc8.6121.4054.01204.042.45Buy
Aberdeen Ethical World Equity I Inc27.7024.1844.25149.491.10Buy
Aberdeen Multi Manager Ethical Portfolio I Inc22.0738.8579.1952.180.20Buy
Aberdeen Responsible UK Equity I Inc20.5916.2147.5921.032.30Buy
BlackRock GF New Energy D4RF GBP22.9331.1960.89910.03-Buy
Castlefield B.E.S.T Income Inst Inc0.8617.2350.2019.744.60Buy
Climate Assets B Inc18.8431.1468.2445.622.53Buy
EFA Eden SRI B Inc7.3818.43-5.752.37Buy
EFA Eden SRI A Inc7.1817.73-5.752.37Buy
EdenTree Amity European B17.8926.3282.3469.492.01Buy
EdenTree Amity International B22.4223.2257.02207.321.91Buy
EdenTree Amity Sterling Bond B4.3914.1634.6290.065.07Buy
EdenTree Amity UK B3.3217.4672.20134.452.32Buy
F&C Responsible Global Equity 2 Inc20.8545.8198.35268.070.70Buy
F&C Responsible UK Equity Growth 2 Inc7.6323.8178.86354.412.10Buy
F&C Responsible UK Income 2 Inc3.8121.2272.87293.884.10Buy
FP WHEB Sustainability C Inc18.0137.6168.86121.000.89Buy
Henderson Global Care Growth I Inc19.6844.17100.69528.880.80Buy
Henderson Global Care UK Income I Inc3.5625.3287.48166.344.20Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Bacit Limited5.2621.67-1.62129.40Buy
Impax Environmental Markets Ord 10P35.2049.89126.21-12.35237.88Buy
Jupiter Green Investment20.5722.8795.35-4.39172.05Buy
Ludgate Environmental-49.28-65.70-71.56-15.4620.70Buy
Menhaden Capital Plc ORD 1P-18.13---23.4685.58Buy
NextEnergy Solar Fund Limited Red Ord Npv17.41--5.88102.00Buy
Tejoori238.89-23.75-39.00--Buy
Trading Emissions PLC124.3433.58207.70-6.30Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
Lyxor UCITS ETF WORLD WATER D GBP7.0424.0158.36-GBXCommodity & EnergyBuy
UBS ETF - MSCI EMU Socially Responsible UCITS ETF (EUR) A Dis GBP12.7721.9531.14-GBXEquity - EthicalBuy
iShares Dow Jones Europe Sustainability Screened UCITS ETF GBP8.5212.8418.8265.56GBPEquity - EthicalBuy
iShares Dow Jones Global Sustainability Screened UCITS ETF GBP20.0827.3640.0680.79GBPEquity - EthicalBuy
iShares Global Clean Energy UCITS ETF GBP4.994.498.8127.62GBPCommodity & EnergyBuy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Foresight Planned Exit VCT-13.23-26.32-20.3645.60-42.9853.85VCT GeneralistBuy
Foresight Solar & Infrastructure VCT PLC C ORD 1P-6.99-6.68-83.10-1.936.14VCT Specialist EnvironmentalBuy
Foresight Solar & Infrastructure VCT PLC D---100.99-0.98-VCT Specialist Environmental Pre QualifyBuy
Foresight Solar & Infrastructure VCT PLC Ord 1P-6.01-1.3524.1797.70-7.376.63VCT Specialist EnvironmentalBuy
Hazel Renewable Energy VCT1 PLC A Shs 0.1P0.508,668.418,668.410.104,949.85-VCT Specialist EnvironmentalBuy
Hazel Renewable Energy VCT1 PLC Ord 0.1P8.7857.4646.26116.58-8.654.69VCT Specialist EnvironmentalBuy
Hazel Renewable Energy VCT2 PLC A Shs 0.1P0.508,668.418,668.410.104,949.85-VCT Specialist EnvironmentalBuy
Hazel Renewable Energy VCT2 PLC Ord 0.1P20.5458.2646.99111.62-4.584.69VCT Specialist EnvironmentalBuy
Octopus VCT 3 PLC ORD 1P-2.45-6.13-80.10-0.756.29VCT Specialist EnvironmentalBuy
Octopus VCT 4 PLC ORD 1P-1.31-6.13-80.10-0.756.29VCT Specialist EnvironmentalBuy
TP Income VCT plc-58.2041.2868.13-26.61-VCT GeneralistBuy
Ventus 2 VCT PLC D SHS 25P4.85--124.30-14.723.30VCT Specialist Environmental Pre QualifyBuy
Ventus VCT19.8550.00126.68111.64-5.0515.09VCT Specialist EnvironmentalBuy
Ventus VCT 25.1049.44160.5475.70-7.537.50VCT Specialist EnvironmentalBuy
Ventus VCT 2 C23.2552.1845.85121.60-7.077.08VCT Specialist EnvironmentalBuy
Ventus VCT C22.6254.9253.94120.50-6.227.08VCT Specialist EnvironmentalBuy
Ventus VCT PLC D SHS 25P4.85--121.30-12.613.30VCT Specialist Environmental Pre QualifyBuy

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