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 Inc2.2610.9031.2881.631.90Buy
AXA Ethical Distribution Z Inc1.0814.5333.97227.011.59Buy
Aberdeen Ethical World Equity I Inc7.0421.2736.53142.540.90Buy
Aberdeen Multi Manager Ethical Portfolio I Inc5.4930.2065.8066.370.20Buy
Aberdeen Responsible UK Equity I Inc7.4321.4639.0726.622.10Buy
Castlefield B.E.S.T Sustainable Income Inst Inc-2.563.1726.8526.514.00Buy
Castlefield B.E.S.T Sustainable Income Charity Inc-2.551.9025.2926.514.00Buy
Castlefield B.E.S.T Sustainable European General Inc---11.10-Buy
Climate Assets B Inc2.4422.4948.4657.672.53Buy
EFA Eden SRI B Inc4.3113.67-0.002.06Buy
EFA Eden SRI A Inc4.1313.01-0.002.07Buy
EdenTree Amity European B5.7035.8775.3698.521.89Buy
EdenTree Amity International B9.7125.6743.95224.491.89Buy
EdenTree Amity Short Dated Bond B Gr Inc---20.50-Buy
EdenTree Amity Sterling Bond B4.6611.4123.30128.384.58Buy
EdenTree Amity UK B5.9617.4748.91149.682.21Buy
F&C Responsible Global Equity 2 Inc11.6039.3582.61382.710.70Buy
F&C Responsible UK Equity Growth 2 Inc10.8325.5964.84414.042.00Buy
F&C Responsible UK Income 2 Inc7.2420.3653.47330.113.80Buy
FP WHEB Sustainability C Inc12.2235.4875.85196.001.00Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Impax Environmental Markets Ord 10P19.6168.26126.51-0.90270.44Buy
Jupiter Green Investment6.2824.3970.22-5.30194.82Buy
Menhaden Capital Plc ORD 1P4.76---25.0288.02Buy
Syncona Limited Ord NPV39.3875.8596.7535.03149.23Buy
Trading Emissions PLC281.191,355.80566.67-11.584.75Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
BetaShares Australian Sustainability Leaders ETF----AUDEquity - AustraliaBuy
UBS ETF - MSCI Emerging Markets Socially Responsible UCITS ETF USD A Dis-1.366.2322.14-GBXEquity - Emerging MarketsBuy
UBS ETF - MSCI EMU Socially Responsible UCITS ETF (EUR) A Dis GBP-1.589.2545.7377.48GBXEquity - Europe ex UKBuy
UBS ETF - MSCI Pacific Socially Responsible UCITS ETF (USD) A Dis GBP-3.013.1422.6538.86GBXEquity - Asia Pacific inc JapanBuy
UBS ETF - MSCI World Socially Responsible UCITS ETF (USD) A Dis GBP-1.525.2934.3967.28GBXEquity - EthicalBuy
UBS (Irl) ETF plc - MSCI ACWI Socially Responsible UCITS ETF (hedged to GBP) A Dis----GBPEquity - EthicalBuy
UBS (Irl) ETF plc - MSCI ACWI Socially Responsible UCITS ETF (hedged to USD) A Acc----USDEquity - EthicalBuy
UBS (Irl) ETF plc - MSCI United Kingdom IMI Socially responsible UCITS ETF A Dis0.684.5017.92-GBPEquity - UKBuy
iShares Dow Jones Global Sustainability Screened UCITS ETF GBP-2.215.1531.4362.14GBPEquity - EthicalBuy
iShares Global Clean Energy UCITS ETF GBP1.137.06-10.6345.30GBPCommodity & EnergyBuy
iShares MSCI Europe SRI UCITS ETF GBP-2.554.6720.9549.52GBPEquity - Europe inc UKBuy
iShares MSCI World Islamic UCITS ETF GBP-3.172.6126.1455.56GBPEquity - EthicalBuy
iShares Sustainable MSCI Japan SRI EUR Hedged UCITS ETF GBP-2.1218.97--GBPEquity - JapanBuy
iShares Sustainable MSCI Emerging Markets SRI UCITS ETF GBP-0.978.67--GBPEquity - Emerging MarketsBuy
iShares Sustainable MSCI USA SRI UCITS ETF GBP1.017.89--GBPEquity - USABuy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Foresight Solar & Infrastructure VCT PLC C ORD 1P11.473.684.0290.00-7.786.02VCT Specialist: EnvironmentalBuy
Foresight Solar & Infrastructure VCT PLC Ord 1P5.549.7730.3999.60-9.146.63VCT Specialist: EnvironmentalBuy
Triple Point Income Vct Plc Ord 1P15.5068.8552.2763.08-20.7410.00VCT GeneralistBuy

Disclaimer

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