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 Inc10.9322.3950.0170.011.50Buy
AXA Ethical Distribution Z Inc6.5617.3354.25203.452.45Buy
Aberdeen Ethical World Equity I Inc28.2922.8252.49152.301.10Buy
Aberdeen Multi Manager Ethical Portfolio I Inc30.7941.1886.5649.010.10Buy
Aberdeen Responsible UK Equity I Inc18.5014.6650.6320.882.30Buy
BlackRock GF New Energy D4RF GBP35.4836.6070.81950.42-Buy
Castlefield B.E.S.T Income Inst Inc0.4415.6850.6519.14-Buy
Climate Assets B Inc22.1532.5674.4146.902.53Buy
EdenTree Amity European B19.9025.9778.4671.951.96Buy
EdenTree Amity International B26.1525.5763.40217.671.85Buy
EdenTree Amity Sterling Bond B6.0416.1737.7390.214.83Buy
EdenTree Amity UK B4.5118.6775.09137.492.26Buy
F&C Responsible Global Equity 2 Inc27.2248.17102.46270.360.70Buy
F&C Responsible UK Equity Growth 2 Inc8.8522.7878.89361.592.10Buy
F&C Responsible UK Income 2 Inc5.0920.9174.56299.744.00Buy
FP WHEB Sustainability C Inc29.4844.8876.51120.000.85Buy
Henderson Global Care Growth I Inc25.7147.93103.15502.230.80Buy
Henderson Global Care UK Income I Inc7.0227.2693.08167.123.90Buy
Jupiter Ecology I Inc27.5233.9182.37515.540.60Buy
Jupiter Global Ecology Diversified D HSC A Inc Dist GBP---10.36-Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Bacit Limited-1.8513.75-0.21124.24Buy
Impax Environmental Markets Ord 10P42.6155.86150.29-12.09245.99Buy
Jupiter Green Investment27.0228.62108.48-4.57177.61Buy
Ludgate Environmental-43.48-63.37-69.58-5.8020.70Buy
Menhaden Capital Plc ORD 1P-31.99---20.9685.40Buy
NextEnergy Solar Fund Limited Red Ord Npv11.30--6.23101.90Buy
Trading Emissions PLC63.9150.77-4.45-3.42Buy


Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
Lyxor UCITS ETF WORLD WATER D GBP18.4330.6863.20-GBXCommodity & EnergyBuy
UBS ETF - MSCI EMU Socially Responsible UCITS ETF (EUR) A Dis GBP20.6327.5034.02-GBXEquity - EthicalBuy
iShares Dow Jones Europe Sustainability Screened UCITS ETF GBP15.8714.8921.1568.34GBPEquity - EthicalBuy
iShares Dow Jones Global Sustainability Screened UCITS ETF GBP21.8127.2638.6282.05GBPEquity - EthicalBuy
iShares Global Clean Energy UCITS ETF GBP18.8315.6919.3341.92GBPCommodity & EnergyBuy


Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Foresight Planned Exit VCT-9.89-23.49-19.0745.60-40.7951.85VCT GeneralistBuy
Foresight Solar & Infrastructure VCT PLC C ORD 1P-6.99-6.68- Specialist EnvironmentalBuy
Foresight Solar & Infrastructure VCT PLC D---101.32-1.30-VCT Specialist Environmental Pre QualifyBuy
Foresight Solar & Infrastructure VCT PLC Ord 1P-6.667.7126.24103.20-7.466.28VCT 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
Iona Environmental VCT Ord 0.1P18.00-17.31-35.5067.00-11.94-VCT Specialist EnvironmentalBuy
Iona Environmental VCT A---1.40260.7125.54VCT Specialist EnvironmentalBuy
Iona Environmental VCT B 0.1P1.272.66-88.90-13.39-VCT Specialist EnvironmentalBuy
Octopus VCT 3 PLC ORD 1P--3.77-78.104.356.14VCT Specialist EnvironmentalBuy
Octopus VCT 4 PLC ORD 1P1.17-3.77-78.104.356.14VCT Specialist EnvironmentalBuy
TP Income VCT plc32.9058.2041.2867.92-26.3832.90VCT GeneralistBuy
Ventus 2 VCT PLC D SHS 25P10.10--126.80-16.403.77VCT Specialist Environmental Pre QualifyBuy
Ventus VCT22.3447.17122.40122.19-14.8814.90VCT Specialist EnvironmentalBuy
Ventus VCT 29.7441.80142.9076.65-12.597.84VCT Specialist EnvironmentalBuy
Ventus VCT 2 C16.7145.7138.10119.60-10.537.48VCT Specialist EnvironmentalBuy
Ventus VCT C16.7046.7045.76123.24-13.187.48VCT Specialist EnvironmentalBuy
Ventus VCT PLC D SHS 25P10.10--128.40-17.453.77VCT Specialist Environmental Pre QualifyBuy


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