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 Acc12.4523.6342.7573.441.90Buy
AXA Ethical Distribution Z Acc13.8525.0650.67209.792.48Buy
Aberdeen Ethical World Equity I Acc30.1431.6645.83155.680.90Buy
Aberdeen Multi Manager Ethical Portfolio I Acc28.3844.7478.4958.500.20Buy
Aberdeen Responsible UK Equity I Acc24.1822.5849.0722.942.20Buy
Alliance Trust Sustainable Future European Growth 2 Acc25.0033.3186.56170.401.43Buy
Alliance Trust Sustainable Future Global Growth 2 Acc26.0640.6679.62175.020.49Buy
Alliance Trust Sustainable Future UK Growth 2 Acc17.8828.0076.62250.911.74Buy
Alliance Trust UK Ethical 2 Acc14.5524.8375.01325.962.02Buy
Alquity Indian Subcontinent R GBP47.87--14.17-Buy
BMO Responsible Global Emerging Markets Equity R GBP32.6142.2726.1433.40-Buy
Climate Assets B Acc19.6533.7864.9549.132.48Buy
F&C Responsible Global Equity 2 Acc28.7856.1490.36297.410.70Buy
F&C Responsible UK Equity Growth 2 Acc17.5426.6872.89376.002.10Buy
F&C Responsible UK Income 2 Acc11.6324.1768.79310.043.50Buy
FP WHEB Sustainability C Acc24.2944.4276.01129.000.07Buy
Guinness Alternative Energy X GBP7.73-13.8515.807.71-Buy
Henderson Global Care Growth I GBP26.6743.7193.81518.220.70Buy
Henderson Inst Global Care Managed I Acc15.5528.7267.70244.361.50Buy
Impax Asian Environmental Markets X GBP34.37--30.10-Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
7IM Sustainable Balance C Inc12.4823.6742.7973.441.90Buy
AXA Ethical Distribution Z Inc13.8625.0450.69209.792.53Buy
Aberdeen Ethical World Equity I Inc30.1131.6745.78155.680.90Buy
Aberdeen Multi Manager Ethical Portfolio I Inc28.3844.7578.4958.500.20Buy
Aberdeen Responsible UK Equity I Inc23.2821.7248.0122.942.20Buy
BlackRock GF New Energy D4RF GBP23.1432.3465.11970.29-Buy
Castlefield B.E.S.T Income Inst Inc5.4115.5247.2024.334.47Buy
Climate Assets B Inc19.4833.8165.6049.132.53Buy
EFA Eden SRI B Inc12.6922.10-5.362.28Buy
EFA Eden SRI A Inc12.4721.38-5.362.28Buy
EdenTree Amity European B28.8034.3991.0077.252.17Buy
EdenTree Amity International B26.3033.5360.08218.841.84Buy
EdenTree Amity Sterling Bond B7.1013.8533.8696.914.67Buy
EdenTree Amity UK B9.9520.0367.01141.262.17Buy
F&C Responsible Global Equity 2 Inc28.7455.8590.18297.410.70Buy
F&C Responsible UK Equity Growth 2 Inc17.5226.4672.71376.002.10Buy
F&C Responsible UK Income 2 Inc11.6424.1968.72310.043.90Buy
FP WHEB Sustainability C Inc23.2543.2070.68129.000.84Buy
Henderson Global Care Growth I Inc26.7143.7293.94518.220.70Buy
Henderson Global Care UK Income I Inc10.9026.5379.70177.663.90Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Impax Environmental Markets Ord 10P37.0550.29132.01-11.75254.10Buy
Jupiter Green Investment32.7423.2595.37-3.30179.43Buy
Menhaden Capital Plc ORD 1P-1.54---27.7488.57Buy
NextEnergy Solar Fund Limited Red Ord Npv20.49--6.48102.60Buy
Syncona Limited Ord NPV13.2229.99-12.29130.91Buy
Tejoori335.906.25-15.00--Buy
Trading Emissions PLC20.02-15.877.34--Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
Lyxor UCITS ETF WORLD WATER D GBP1.9125.2756.90-GBXCommodity & EnergyBuy
UBS ETF - MSCI EMU Socially Responsible UCITS ETF (EUR) A Dis GBP9.5128.9141.12-GBXEquity - EthicalBuy
iShares Dow Jones Europe Sustainability Screened UCITS ETF GBP6.8924.0826.0566.15GBPEquity - EthicalBuy
iShares Dow Jones Global Sustainability Screened UCITS ETF GBP12.9432.1248.1579.65GBPEquity - EthicalBuy
iShares Global Clean Energy UCITS ETF GBP-2.918.859.5233.49GBPCommodity & EnergyBuy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Foresight Planned Exit VCT-2.10-27.72-24.54--57.14VCT GeneralistBuy
Foresight Solar & Infrastructure VCT PLC C ORD 1P--6.68---6.14VCT Specialist EnvironmentalBuy
Foresight Solar & Infrastructure VCT PLC D------VCT Specialist Environmental Pre QualifyBuy
Foresight Solar & Infrastructure VCT PLC Ord 1P0.030.0928.97--6.42VCT Specialist EnvironmentalBuy
Hazel Renewable Energy VCT1 PLC A Shs 0.1P-0.508,668.41---VCT Specialist EnvironmentalBuy
Hazel Renewable Energy VCT1 PLC Ord 0.1P-3.2910.3458.04--4.85VCT Specialist EnvironmentalBuy
Hazel Renewable Energy VCT2 PLC A Shs 0.1P-0.508,668.41---VCT Specialist EnvironmentalBuy
Hazel Renewable Energy VCT2 PLC Ord 0.1P-3.2910.8958.84--4.85VCT Specialist EnvironmentalBuy
Octopus VCT 3 PLC ORD 1P-5.07-13.00-8.65--6.90VCT Specialist EnvironmentalBuy
Octopus VCT 4 PLC ORD 1P-5.07-13.00-8.65--6.90VCT Specialist EnvironmentalBuy
TP Income VCT plc-46.1941.28---VCT GeneralistBuy
Ventus 2 VCT PLC D SHS 25P5.35----3.33VCT Specialist Environmental Pre QualifyBuy
Ventus VCT23.8148.47108.86--15.09VCT Specialist EnvironmentalBuy
Ventus VCT 28.1649.03155.95--7.61VCT Specialist EnvironmentalBuy
Ventus VCT 2 C25.2651.7454.40--6.90VCT Specialist EnvironmentalBuy
Ventus VCT C26.5351.8572.12--6.90VCT Specialist EnvironmentalBuy
Ventus VCT PLC D SHS 25P5.35----3.33VCT Specialist Environmental Pre QualifyBuy

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