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 Inc6.7322.2443.4881.762.10Buy
AXA Ethical Distribution Z Inc8.7627.1147.56229.761.54Buy
Aberdeen Ethical World Equity I Inc13.6635.9853.90152.520.90Buy
Aberdeen Multi Manager Ethical Portfolio I Inc14.1948.0491.0166.190.20Buy
Aberdeen Responsible UK Equity I Inc12.8935.5051.6225.792.00Buy
Castlefield B.E.S.T Income Inst Inc7.4720.1547.0526.343.60Buy
Castlefield B.E.S.T Income Charity Inc7.4918.6745.2326.343.70Buy
Castlefield B.E.S.T Sustainable European General Inc---8.99-Buy
Climate Assets B Inc11.1334.4368.0656.982.53Buy
EFA Eden SRI B Inc9.3522.40-5.402.06Buy
EFA Eden SRI A Inc9.1421.67-5.402.07Buy
EdenTree Amity European B22.1355.22101.3594.061.99Buy
EdenTree Amity International B15.4238.6367.24226.101.78Buy
EdenTree Amity Short Dated Bond B Gr Inc---16.37-Buy
EdenTree Amity Sterling Bond B8.9915.2629.50120.694.15Buy
EdenTree Amity UK B13.6230.7365.08149.432.06Buy
F&C Responsible Global Equity 2 Inc18.6661.14113.61397.020.70Buy
F&C Responsible UK Equity Growth 2 Inc18.8939.3180.98412.672.00Buy
F&C Responsible UK Income 2 Inc13.8833.1667.57327.353.80Buy
FP WHEB Sustainability C Inc17.3151.6595.73185.000.81Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Impax Environmental Markets Ord 10P21.7376.95168.63-8.97280.40Buy
Jupiter Green Investment14.1235.6597.65-4.75195.81Buy
Menhaden Capital Plc ORD 1P4.58---23.4189.44Buy
Syncona Limited Ord NPV53.0277.71108.6422.27162.10Buy
Trading Emissions PLC82.14329.98269.51--Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
UBS ETF - MSCI Emerging Markets Socially Responsible UCITS ETF USD A Dis2.9818.8342.37-GBXEquity - Emerging MarketsBuy
UBS ETF - MSCI EMU Socially Responsible UCITS ETF (EUR) A Dis GBP2.7324.0664.2899.59GBXEquity - Europe ex UKBuy
UBS ETF - MSCI Pacific Socially Responsible UCITS ETF (USD) A Dis GBP4.2211.6352.5181.69GBXEquity - Asia Pacific inc JapanBuy
UBS ETF - MSCI World Socially Responsible UCITS ETF (USD) A Dis GBP4.2714.0552.01101.01GBXEquity - EthicalBuy
UBS (Irl) ETF plc - MSCI United Kingdom IMI Socially responsible UCITS ETF A Dis-0.8012.9735.18-GBPEquity - UKBuy
iShares Dow Jones Global Sustainability Screened UCITS ETF GBP3.7814.2649.3989.25GBPEquity - EthicalBuy
iShares Global Clean Energy UCITS ETF GBP1.389.5515.9271.31GBPCommodity & EnergyBuy
iShares MSCI Europe SRI UCITS ETF GBP1.7119.7838.5369.56GBPEquity - Europe inc UKBuy
iShares Sustainable MSCI Japan SRI EUR Hedged UCITS ETF GBP14.4522.27--GBPEquity - JapanBuy
iShares Sustainable MSCI Emerging Markets SRI UCITS ETF GBP3.7919.71--GBPEquity - Emerging MarketsBuy
iShares Sustainable MSCI USA SRI UCITS ETF GBP7.1015.44--GBPEquity - USABuy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Foresight Solar & Infrastructure VCT PLC C ORD 1P8.86-0.89-88.80-5.975.99VCT Specialist EnvironmentalBuy
Foresight Solar & Infrastructure VCT PLC D-3.00--97.50-0.51-VCT Specialist Environmental Pre QualifyBuy
Foresight Solar & Infrastructure VCT PLC Ord 1P6.7011.9638.47101.30-7.706.42VCT 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 0.1P4.6513.8483.84116.40-8.514.69VCT 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 0.1P4.8526.3985.13115.50-7.794.69VCT Specialist EnvironmentalBuy
Octopus VCT 3 PLC ORD 1P-6.71-5.23-12.4374.30-6.467.19VCT Specialist EnvironmentalBuy
Octopus VCT 4 PLC ORD 1P-6.71-5.23-12.4374.30-6.467.19VCT Specialist EnvironmentalBuy
Triple Point Income Vct Plc Ord 1P15.5068.8552.2762.73-20.2910.00VCT GeneralistBuy
Ventus 2 VCT PLC Ord 25P15.0250.08102.1378.20-7.936.94VCT Specialist EnvironmentalBuy
Ventus 2 VCT PLC C SHS 25P18.4049.59108.41132.50-8.306.58VCT Specialist EnvironmentalBuy
Ventus 2 VCT PLC D SHS 25P14.8226.42-131.20-8.54-VCT Specialist EnvironmentalBuy
Ventus VCT PLC Ord 25P9.1349.5698.65112.20-8.207.77VCT Specialist EnvironmentalBuy
Ventus VCT PLC C SHS 25P18.4052.61108.60131.20-7.396.58VCT Specialist EnvironmentalBuy
Ventus VCT PLC D SHS 25P14.8226.42-130.40-7.98-VCT Specialist EnvironmentalBuy

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