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 Inc13.5924.1053.2768.801.50Buy
AXA Ethical Distribution Z Inc8.1719.4458.22202.812.45Buy
Aberdeen Ethical World Equity I Inc29.9517.9556.62150.641.10Buy
Aberdeen Multi Manager Ethical Portfolio I Inc30.3639.2786.8948.330.10Buy
Aberdeen Responsible UK Equity I Inc21.4915.8059.9920.752.30Buy
BlackRock GF New Energy D4RF GBP36.2732.6371.04940.31-Buy
Castlefield B.E.S.T Income Inst Inc3.9018.3658.2818.71-Buy
Climate Assets B Inc23.8232.9880.5245.532.53Buy
EdenTree Amity European B20.9327.8888.7869.672.02Buy
EdenTree Amity International B28.5523.1665.87212.161.93Buy
EdenTree Amity Sterling Bond B7.0320.1339.9892.034.78Buy
EdenTree Amity UK B6.3021.9783.89137.172.27Buy
F&C Responsible Global Equity 2 Inc27.6245.36105.42237.250.70Buy
F&C Responsible UK Equity Growth 2 Inc11.5628.0289.92366.422.10Buy
F&C Responsible UK Income 2 Inc8.3626.9783.71301.834.00Buy
FP WHEB Sustainability C Inc29.5442.1980.33118.000.88Buy
Henderson Global Care Growth I Inc25.2144.68110.02502.230.50Buy
Henderson Global Care UK Income I Inc9.3931.43104.64168.983.80Buy
Jupiter Ecology I Inc27.3930.7585.65506.840.60Buy
Jupiter Responsible Income I Inc6.0913.2672.6871.923.50Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Bacit Limited-1.3618.37-3.77122.39Buy
Impax Environmental Markets Ord 10P44.6552.34130.65-11.40236.46Buy
Jupiter Green Investment19.7824.9295.29-7.29171.50Buy
Ludgate Environmental-34.78-57.74-68.11-14.7726.40Buy
Menhaden Capital Plc ORD 1P-42.43---31.2684.38Buy
NextEnergy Solar Fund Limited Red Ord Npv10.41--3.16101.90Buy
Tejoori655.56-15.00-43.33--Buy
Trading Emissions PLC60.4018.63-26.23-3.42Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
Lyxor UCITS ETF WORLD WATER D GBP21.0139.6665.72-GBXCommodity & EnergyBuy
UBS ETF - MSCI EMU Socially Responsible UCITS ETF (EUR) A Dis GBP18.3529.2433.58-GBXEquity - EthicalBuy
iShares Dow Jones Europe Sustainability Screened UCITS ETF GBP18.0120.3023.9581.89GBPEquity - EthicalBuy
iShares Dow Jones Global Sustainability Screened UCITS ETF GBP18.7829.5734.9586.49GBPEquity - EthicalBuy
iShares Global Clean Energy UCITS ETF GBP15.2823.6722.6233.57GBPCommodity & EnergyBuy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Foresight Planned Exit VCT-11.83-20.51-19.0745.60-10.09-VCT GeneralistBuy
Foresight Solar & Infrastructure VCT PLC C ORD 1P-5.00-6.68-83.101.085.95VCT Specialist EnvironmentalBuy
Foresight Solar & Infrastructure VCT PLC D---101.32-1.30-VCT Specialist Environmental Pre QualifyBuy
Foresight Solar & Infrastructure VCT PLC Ord 1P-0.1112.1028.89103.20-5.526.15VCT 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 0.1P0.89-29.92-45.3467.00-25.37-VCT Specialist EnvironmentalBuy
Iona Environmental VCT A---1.40260.71-VCT Specialist EnvironmentalBuy
Iona Environmental VCT B 0.1P4.62-1.19-88.90-13.39-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 plc32.9064.3261.7867.92-26.3832.90VCT GeneralistBuy
Ventus 2 VCT PLC D SHS 25P10.10--126.80-16.403.77VCT Specialist Environmental Pre QualifyBuy
Ventus VCT22.0751.82114.54123.03-16.0815.01VCT Specialist EnvironmentalBuy
Ventus VCT 29.7442.42110.7477.22-13.237.84VCT Specialist EnvironmentalBuy
Ventus VCT 2 C15.6244.3436.81120.45-12.827.55VCT Specialist EnvironmentalBuy
Ventus VCT C16.7047.1145.76124.12-14.607.48VCT Specialist EnvironmentalBuy
Ventus VCT PLC D SHS 25P10.10--128.40-17.453.77VCT Specialist Environmental Pre QualifyBuy

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