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 Inc12.9124.5845.5075.751.90Buy
AXA Ethical Distribution Z Inc17.6326.8857.68215.302.50Buy
Aberdeen Ethical World Equity I Inc28.9926.8753.47154.510.90Buy
Aberdeen Multi Manager Ethical Portfolio I Inc26.0443.8984.2658.420.20Buy
Aberdeen Responsible UK Equity I Inc24.3922.8055.0523.582.20Buy
BlackRock GF New Energy D4RF GBP29.1837.8780.031,023.04-Buy
Castlefield B.E.S.T Income Inst Inc7.9017.9156.1425.934.11Buy
Castlefield B.E.S.T Income Charity Inc7.9117.9256.4225.934.11Buy
Climate Assets B Inc21.3236.3470.9450.232.53Buy
EFA Eden SRI B Inc12.5721.85-5.362.28Buy
EFA Eden SRI A Inc12.3521.12-5.362.28Buy
EdenTree Amity European B30.2739.28112.6281.112.15Buy
EdenTree Amity International B26.1831.5665.90214.581.94Buy
EdenTree Amity Sterling Bond B7.6813.6635.2198.044.73Buy
EdenTree Amity UK B13.7124.6673.88145.822.14Buy
F&C Responsible Global Equity 2 Inc25.5857.5395.43311.770.70Buy
F&C Responsible UK Equity Growth 2 Inc18.8330.5180.48385.002.00Buy
F&C Responsible UK Income 2 Inc11.5526.4873.27314.753.80Buy
FP WHEB Sustainability C Inc24.4750.0784.48151.000.83Buy
Henderson Global Care Growth I Inc26.8949.75107.53533.650.60Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Impax Environmental Markets Ord 10P31.2753.42138.23-12.19259.36Buy
Jupiter Green Investment23.2426.8992.90-5.55185.81Buy
Menhaden Capital Plc ORD 1P4.13---28.1087.62Buy
NextEnergy Solar Fund Limited Red Ord Npv24.8131.57-10.87102.60Buy
Syncona Limited Ord NPV13.1332.60-11.53131.44Buy
Trading Emissions PLC-29.52-18.912.53--Buy


Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
Lyxor UCITS ETF WORLD WATER D GBP4.4126.1063.56-GBXCommodity & EnergyBuy
UBS ETF - MSCI EMU Socially Responsible UCITS ETF (EUR) A Dis GBP9.8631.8946.87-GBXEquity - EthicalBuy
iShares Dow Jones Europe Sustainability Screened UCITS ETF GBP8.4724.4827.2479.48GBPEquity - EthicalBuy
iShares Dow Jones Global Sustainability Screened UCITS ETF GBP7.1230.1446.2186.31GBPEquity - EthicalBuy
iShares Global Clean Energy UCITS ETF GBP-7.218.5411.0842.69GBPCommodity & EnergyBuy


Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Foresight Planned Exit VCT2.76-26.13-22.8841.10-74.45-VCT GeneralistBuy
Foresight Solar & Infrastructure VCT PLC C ORD 1P--6.68-88.10-10.336.33VCT Specialist EnvironmentalBuy
Foresight Solar & Infrastructure VCT PLC D---98.901.11-VCT Specialist Environmental Pre QualifyBuy
Foresight Solar & Infrastructure VCT PLC Ord 1P6.67-1.5331.09101.70-10.036.56VCT 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 0.1P-3.2910.3458.04118.10-12.794.85VCT 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 0.1P-3.2910.8958.84117.30-12.194.85VCT Specialist EnvironmentalBuy
Octopus VCT 3 PLC ORD 1P-27.33-33.40-30.0780.10-30.719.01VCT Specialist EnvironmentalBuy
Octopus VCT 4 PLC ORD 1P-27.33-33.40-30.0780.10-30.719.01VCT Specialist EnvironmentalBuy
Triple Point Income VCT Plc Ord 1P-46.1941.2868.27-26.76-VCT Generalist Pre QualifyingBuy
Ventus 2 VCT PLC D SHS 25P5.3510.62-123.30-14.843.33VCT Specialist Environmental Pre QualifyBuy
Ventus VCT23.8150.05113.82113.20-6.3615.09VCT Specialist EnvironmentalBuy
Ventus VCT 214.7148.59181.3078.20-10.497.50VCT Specialist EnvironmentalBuy
Ventus VCT 2 C24.1850.4353.07125.10-8.076.96VCT Specialist EnvironmentalBuy
Ventus VCT C24.8150.5470.64124.00-7.266.96VCT Specialist EnvironmentalBuy
Ventus VCT PLC D SHS 25P5.3510.62-122.80-14.503.33VCT Specialist Environmental Pre QualifyBuy


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