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 Acc8.0026.5446.6778.091.90Buy
AXA Ethical Distribution Z Acc14.9328.6856.60218.252.02Buy
Aberdeen Ethical World Equity I Acc17.7729.6758.99154.870.90Buy
Aberdeen Multi Manager Ethical Portfolio I Acc16.9547.3795.8762.000.20Buy
Aberdeen Responsible UK Equity I Acc16.9128.2959.3124.332.00Buy
Alquity Indian Subcontinent R GBP30.7582.50-29.59-Buy
BMO Responsible Global Emerging Markets Equity R GBP21.9342.8446.78127.10-Buy
Candriam SRI Equity Emerging Markets R UnHedged Acc GBP24.54--204.36-Buy
Climate Assets B Acc11.0338.8570.5553.172.48Buy
F&C Responsible Global Equity 2 Acc21.5767.75112.13335.510.80Buy
F&C Responsible UK Equity Growth 2 Acc18.6636.6088.12395.792.00Buy
F&C Responsible UK Income 2 Acc15.1232.0677.93323.423.10Buy
FP WHEB Sustainability C Acc18.3062.62104.94167.000.11Buy
Guinness Alternative Energy X GBP9.65-4.3062.359.13-Buy
Henderson Global Care Growth I GBP21.4560.20124.61565.190.60Buy
Henderson Inst Global Care Managed I Acc13.2536.8379.90262.491.40Buy
Impax Asian Environmental Markets X GBP20.77--46.90-Buy
Impax Environmental Leaders A GBP23.17--9.00-Buy
Impax Environmental Markets X GBP21.07--151.10-Buy
Impax Environmental Markets A GBP20.6954.50112.98151.10-Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
7IM Sustainable Balance C Inc8.0626.6546.6878.091.90Buy
AXA Ethical Distribution Z Inc15.0228.6556.73218.252.05Buy
Aberdeen Ethical World Equity I Inc17.7629.6658.96154.870.90Buy
Aberdeen Multi Manager Ethical Portfolio I Inc16.9547.3895.8862.000.20Buy
Aberdeen Responsible UK Equity I Inc16.9128.3459.3424.332.00Buy
BlackRock GF New Energy D4RF GBP24.2547.78103.171,137.87-Buy
Castlefield B.E.S.T Income Inst Inc10.2419.2453.7127.033.85Buy
Castlefield B.E.S.T Income Charity Inc10.2419.2453.8727.033.85Buy
Climate Assets B Inc11.0238.9471.1153.172.53Buy
EFA Eden SRI B Inc8.7623.47-5.492.12Buy
EFA Eden SRI A Inc8.5422.73-5.492.12Buy
EdenTree Amity European B34.3954.23138.3689.971.99Buy
EdenTree Amity International B18.9736.6278.28225.191.82Buy
EdenTree Amity Sterling Bond B7.1514.6134.25103.914.58Buy
EdenTree Amity UK B14.1330.2975.37148.362.09Buy
F&C Responsible Global Equity 2 Inc21.6267.68112.02335.510.70Buy
F&C Responsible UK Equity Growth 2 Inc18.6536.3987.89395.791.90Buy
F&C Responsible UK Income 2 Inc15.1132.0777.81323.423.80Buy
FP WHEB Sustainability C Inc18.3062.62100.41167.000.82Buy
Henderson Global Care Growth I Inc21.4260.24124.54565.190.60Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Impax Environmental Markets Ord 10P27.0070.18166.50-10.70272.13Buy
Jupiter Green Investment22.3928.9498.72-6.13192.82Buy
Menhaden Capital Plc ORD 1P14.53---23.9988.15Buy
NextEnergy Solar Fund Limited Red Ord Npv18.8430.37-7.96104.90Buy
Syncona Limited Ord NPV32.8354.77-25.93136.90Buy
Tejoori14.52184.00-29.00--Buy
Trading Emissions PLC-15.87-20.3636.60--Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
Lyxor UCITS ETF WORLD WATER D GBP9.5410.0663.42-GBXCommodity & EnergyBuy
UBS ETF - MSCI EMU Socially Responsible UCITS ETF (EUR) A Dis GBP16.7330.5858.79118.77GBXEquity - Europe ex UKBuy
UBS ETF - MSCI World Socially Responsible UCITS ETF (USD) A Dis GBP5.9717.9252.90-GBXEquity - EthicalBuy
UBS (Irl) ETF plc - MSCI United Kingdom IMI Socially responsible UCITS ETF A Dis9.5714.70--GBPEquity - UKBuy
iShares Dow Jones Europe Sustainability Screened UCITS ETF GBP11.6220.0032.9695.33GBPEquity - Europe inc UKBuy
iShares Dow Jones Global Sustainability Screened UCITS ETF GBP6.2820.0547.1097.57GBPEquity - EthicalBuy
iShares Global Clean Energy UCITS ETF GBP3.952.8111.7084.54GBPCommodity & EnergyBuy
iShares Sustainable MSCI Japan SRI EUR Hedged UCITS ETF GBP6.5223.98--GBPEquity - JapanBuy
iShares Sustainable MSCI Emerging Markets SRI UCITS ETF GBP11.7819.80--GBPEquity - Emerging MarketsBuy
iShares Sustainable MSCI USA SRI UCITS ETF GBP3.4517.89--GBPEquity - USABuy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Foresight Solar & Infrastructure VCT PLC C ORD 1P4.43-2.54-91.30-9.646.06VCT Specialist EnvironmentalBuy
Foresight Solar & Infrastructure VCT PLC D---97.502.56-VCT Specialist Environmental Pre QualifyBuy
Foresight Solar & Infrastructure VCT PLC Ord 1P8.385.0736.83104.30-8.926.32VCT 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-3.2910.3467.80116.40-11.514.85VCT 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-3.2910.8968.64115.50-10.824.85VCT Specialist EnvironmentalBuy
Octopus VCT 3 PLC ORD 1P-19.48-16.14-22.5173.50-16.338.13VCT Specialist EnvironmentalBuy
Octopus VCT 4 PLC ORD 1P-19.48-16.14-22.5173.50-16.338.13VCT Specialist EnvironmentalBuy
Triple Point Income Vct Plc Ord 1P15.5068.8587.6669.74-28.3110.00VCT GeneralistBuy
Ventus 2 VCT PLC D SHS 25P14.8226.42-132.20-9.231.25VCT Specialist EnvironmentalBuy
Ventus VCT19.8860.25139.01114.60-5.767.41VCT Specialist EnvironmentalBuy
Ventus VCT 215.8047.66178.9181.00-15.437.30VCT Specialist EnvironmentalBuy
Ventus VCT 2 C32.2844.0363.05130.80-9.796.78VCT Specialist EnvironmentalBuy
Ventus VCT C32.4544.0983.83129.70-9.026.78VCT Specialist EnvironmentalBuy
Ventus VCT PLC D SHS 25P14.8226.42-131.50-8.751.25VCT Specialist EnvironmentalBuy

Disclaimer

Interactive Investor does not endorse any particular product. If you are unsure about whether an investment is suitable for you please seek advice from a financial advisor.