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 Inc5.3827.3844.3180.422.10Buy
AXA Ethical Distribution Z Inc10.7934.4652.43226.002.03Buy
Aberdeen Ethical World Equity I Inc10.4037.4054.88153.200.90Buy
Aberdeen Multi Manager Ethical Portfolio I Inc11.4457.8091.6965.040.20Buy
Aberdeen Responsible UK Equity I Inc12.5339.5452.9626.142.10Buy
BlackRock GF New Energy D4RF GBP11.6857.8091.101,187.48-Buy
Castlefield B.E.S.T Income Inst Inc10.4230.0552.3327.473.80Buy
Castlefield B.E.S.T Income Charity Inc10.4028.4350.4927.473.80Buy
Climate Assets B Inc8.4043.7169.0854.882.53Buy
EFA Eden SRI B Inc6.2628.56-5.402.06Buy
EFA Eden SRI A Inc6.0527.79-5.402.07Buy
EdenTree Amity European B23.7468.94109.4994.681.97Buy
EdenTree Amity International B12.4042.1169.07226.161.80Buy
EdenTree Amity Sterling Bond B6.6015.1830.96114.264.17Buy
EdenTree Amity UK B12.7440.0268.96152.002.04Buy
F&C Responsible Global Equity 2 Inc15.4573.56110.78381.470.70Buy
F&C Responsible UK Equity Growth 2 Inc18.0247.6882.81416.901.90Buy
F&C Responsible UK Income 2 Inc12.6639.7969.20329.113.80Buy
FP WHEB Sustainability C Inc13.9763.69102.11173.000.80Buy
Henderson Global Care Growth I Inc15.9466.55120.56593.130.50Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Impax Environmental Markets Ord 10P17.1386.68161.25-9.66278.94Buy
Jupiter Green Investment10.1639.9497.61-5.63196.57Buy
Menhaden Capital Plc ORD 1P16.24---22.1387.33Buy
Syncona Limited Ord NPV54.5379.17-36.70139.72Buy
Tejoori16.18393.75-21.00--Buy
Trading Emissions PLC78.66222.62280.41--Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
Lyxor UCITS ETF WORLD WATER D GBP7.577.0571.13-GBXCommodity & EnergyBuy
UBS ETF - MSCI Emerging Markets Socially Responsible UCITS ETF USD A Dis9.739.2837.59-GBXEquity - Emerging MarketsBuy
UBS ETF - MSCI EMU Socially Responsible UCITS ETF (EUR) A Dis GBP16.6721.1274.44104.90GBXEquity - Europe ex UKBuy
UBS ETF - MSCI Pacific Socially Responsible UCITS ETF (USD) A Dis GBP6.996.2954.8682.03GBXEquity - Asia Pacific inc JapanBuy
UBS ETF - MSCI World Socially Responsible UCITS ETF (USD) A Dis GBP8.0712.5759.0998.88GBXEquity - EthicalBuy
UBS (Irl) ETF plc - MSCI United Kingdom IMI Socially responsible UCITS ETF A Dis6.7712.4240.80-GBPEquity - UKBuy
iShares Dow Jones Europe Sustainability Screened UCITS ETF GBP12.3016.1445.6576.07GBPEquity - Europe inc UKBuy
iShares Dow Jones Global Sustainability Screened UCITS ETF GBP10.2114.7256.0790.75GBPEquity - EthicalBuy
iShares Global Clean Energy UCITS ETF GBP7.36-2.9822.9784.27GBPCommodity & EnergyBuy
iShares Sustainable MSCI Japan SRI EUR Hedged UCITS ETF GBP23.7222.86--GBPEquity - JapanBuy
iShares Sustainable MSCI Emerging Markets SRI UCITS ETF GBP13.0112.76--GBPEquity - Emerging MarketsBuy
iShares Sustainable MSCI USA SRI UCITS ETF GBP7.7914.21--GBPEquity - USABuy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Foresight Solar & Infrastructure VCT PLC C ORD 1P5.70-1.36-88.80-5.975.99VCT Specialist EnvironmentalBuy
Foresight Solar & Infrastructure VCT PLC D---97.502.56-VCT Specialist Environmental Pre QualifyBuy
Foresight Solar & Infrastructure VCT PLC Ord 1P-0.04-1.0230.13101.30-11.656.70VCT 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 0.1P4.6525.5281.57116.40-8.514.69VCT 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 0.1P4.8526.3982.84115.50-7.794.69VCT 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 1P15.5068.8552.2770.09-28.6610.00VCT GeneralistBuy
Ventus 2 VCT PLC Ord 25P16.1656.28186.8881.00-10.496.90VCT Specialist EnvironmentalBuy
Ventus 2 VCT PLC C SHS 25P20.0649.4180.55130.80-8.266.67VCT Specialist EnvironmentalBuy
Ventus 2 VCT PLC D SHS 25P14.8226.42-132.20-9.231.25VCT Specialist EnvironmentalBuy
Ventus VCT PLC Ord 25P11.8160.69137.27114.60-5.767.41VCT Specialist EnvironmentalBuy
Ventus VCT PLC C SHS 25P20.0652.5586.94129.70-7.486.67VCT Specialist EnvironmentalBuy
Ventus VCT PLC D SHS 25P14.8226.42-131.50-8.751.25VCT Specialist EnvironmentalBuy

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