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The ethical 12: group of green UK equity funds outperforms average

If you want to better understand what is happening in the values-based investment market, here is the performance of 12 funds that aim to meet clients' values while delivering returns.

Clients are no longer having to decide between being true to their personal values or getting a return on their investments, according to our sample of 12 funds labelled 'ethical' by fund researcher Lipper.

There are many UK equity funds available in the UK that fund researcher Lipper has assigned an 'ethical' flag to. These have variously labelled themselves 'responsible', 'environmental' and 'sustainable', as well as 'ethical'.

Of those, 12 funds have performance data for the last five years (to 31 December 2017). This gallery showcases those 12.

The average one-year performance of the 12 funds was 16.39%, or 3.6 points above the average return rate for all UK equity companies 

Over three years they beat the all-company average by 2.11%.

These ethical funds, at 76.11%, outperformed the market avergae over five years by 8.6 points. 

Over one and five years the 12 ethical funds also outperformed the FTSE All-Share index.

Read more on ethical funds and how advisers are using them here

Performance

  1 Year 3 Year 5 Year
  31/12/2016 To 31/12/2017 31/12/2014 To 31/12/2017 31/12/2012 To 31/12/2017
Sector, Default Benchmark FTSE All-Share TR 13.1% 33.34% 62.98%
Average Manager Sector: Equity - UK (All Companies) 12.9% 30.92% 67.86%
Average Fund Performance,excluding Ethical Funds Sector: Equity - UK (All Companies) 12.79% 31.06% 67.51%
Average Ethical Fund 16.39% 33.17% 76.11%

Clients are no longer having to decide between being true to their personal values or getting a return on their investments, according to our sample of 12 funds labelled 'ethical' by fund researcher Lipper.

There are many UK equity funds available in the UK that fund researcher Lipper has assigned an 'ethical' flag to. These have variously labelled themselves 'responsible', 'environmental' and 'sustainable', as well as 'ethical'.

Of those, 12 funds have performance data for the last five years (to 31 December 2017). This gallery showcases those 12.

The average one-year performance of the 12 funds was 16.39%, or 3.6 points above the average return rate for all UK equity companies 

Over three years they beat the all-company average by 2.11%.

These ethical funds, at 76.11%, outperformed the market avergae over five years by 8.6 points. 

Over one and five years the 12 ethical funds also outperformed the FTSE All-Share index.

Read more on ethical funds and how advisers are using them here

Performance

  1 Year 3 Year 5 Year
  31/12/2016 To 31/12/2017 31/12/2014 To 31/12/2017 31/12/2012 To 31/12/2017
Sector, Default Benchmark FTSE All-Share TR 13.1% 33.34% 62.98%
Average Manager Sector: Equity - UK (All Companies) 12.9% 30.92% 67.86%
Average Fund Performance,excluding Ethical Funds Sector: Equity - UK (All Companies) 12.79% 31.06% 67.51%
Average Ethical Fund 16.39% 33.17% 76.11%

Aberdeen Responsible UK Equity

Asset manager Aberdeen Standard Investments

Fund manager Ben Ritchie

Profile Ben Ritchie manages the  Aberdeen Responsible UK Equity Fund as a member of the UK and European Equities Team. Ben originally joined Aberdeen in 2002 as a graduate. Ben graduated with a BA (Hons) in Modern History and Politics from Pembroke College, University of Oxford and is a CFA Charter holder. 

Manager Rating N/A

Performance

1 Year: 12.29%

3 Year: 31.51%

5 Year: 50.45%

 

EdenTree Amity UK

Asset manager EdenTree Investment Management

Fund manager Susan Round

Profile

Susan Round controls a significant amount of assets for EdenTree Investment Management across a wide range of sectors. Funds under her jurisdiction include the ethically screened Amity unit trust, which invests in British companies and is open to individuals, corporate bodies and charitable groups. Round is also responsible for the the UK Equity Growth fund. For this fund she targets growth companies.

Manager Rating -

Performance

1 Year: 11.88%

3 Year: 24.71%

5 Year: 60.96%

F&C Responsible UK Equity Growth

Asset manager F&C Asset Management 

Fund manager Catherine Stanley

Profile

Born in 1970, Catherine Stanley attended St Albans High School for Girls before studying Geography at Oriel College Oxford. Following a 10 year stint with Framlington Asset Management, Catherine joined F&C Asset Management in 2000 where she has responsibility for the UK Dynamic and UK Smaller Companies funds. Catherine describes her investment style as being focussed on selecting quality growth stocks and when away from work her recreational interests include the theatre, music and art.

Manager Rating +

Performance 

1 Year: 18.67%

3 Year: 35.76%

5 Year: 77.92%

Kames Ethical Equity

Asset manager Kames Capital

Fund manager Audrey Ryan

Profile

Audrey Ryan is an investment manager in the UK Equities team with responsibility for managing several funds, including the Kames Ethical Equity Fund and Kames UK Opportunities Fund. In addition, Audrey has analysis duties for the travel & leisure sector, and is a small-cap specialist. She joined Kames Capital in 1997 from General Accident where she was a UK small companies portfolio manager. Audrey studied Accounting at Napier University, is a qualified chartered accountant and has an MSc in Investment Analysis. Away from the financial world, Ryan enjoys going to the theatre, tennis and running.

Manager Rating -

Performance

1 Year: 13.51%

3 Year: 28.62%

5 Year: 80.87%

Legal & General Ethical

Asset manager Legal & General

Fund manager Team-managed

 

Performance

1 Year: 11.20%

3 Year: 22.47%

5 Year: 61.85%

Liontrust Sustainable Future UK Growth

Asset manager Alliance Trust

Fund manager Neil Brown

Profile

Born in Dubai and now based in London, Neil Brown is an SRI Investment Manager at Alliance Trust where he manages the Sustainable Future Pan European and Future European using an SRI investment style. Neil graduated from Manchester University with a BA in Economics and an MSc in Development Economics. Outside of fund management he enjoys skiing and the theatre.

Manager Rating A

Performance

1 Year: 20.74%

3 Year: 43.18%

5 Year: 96.41%

Liontrust UK Ethical

Asset manager Alliance Trust

Fund manager Neil Brown

Profile

Born in Dubai and now based in London, Neil Brown is an SRI Investment Manager at Alliance Trust where he manages the Sustainable Future Pan European and Future European using an SRI investment style. Neil graduated from Manchester University with a BA in Economics and an MSc in Development Economics. Outside of fund management he enjoys skiing and the theatre.

Manager Rating A

Performance

1 Year: 22.52%

3 Year: 41.59%

5 Year: 95.7%

Premier Ethical

Asset manager Premier Asset Management

Fund manager Chris Wright

Profile

Chris Wright joined Premier Asset Management in 2008 and is the fund manager of the Premier Optimum Income Fund and Premier Ethical fund. He joined Premier from Thames River Capital. He has over 30 years of investment experience and is a member of the UK Society of Investment Professionals.

Manager Rating +

Performance

1 Year: 18.77%

3 Year: 40.96%

5 Year: 105.48%

Royal London Sustainable Leaders Trust

Asset manager Royal London Asset Management

Fund manager Michael Fox

Profile

RLAM's Mike Fox is head of Sustainable Investments and fund manager of the Sustainable Leaders, World and Diversified Trusts. Prior to this, he worked as a deputy fund manager at the Co-operative employee pension fund for two years and an investment analyst for two years covering the utility, support services and media sectors. Fox originally trained and qualified as a Chartered Accountant with Ernst & Young in Manchester.

Manager Rating A

Performance

1 Year: 14.93%

3 Year: 34.86%

5 Year: 84.08%

Scottish Widows Environmental Investor

Asset manager Scottish Widows

Fund manager Team-managed

Performance

1 Year: 12.34%

3 Year: 23.97%

5 Year: 56.46%

Scottish Widows Ethical

Asset manager Scottish Widows

Fund manager Team-managed

Performance

1 Year: 15.83%

3 Year: 28.72%

5 Year: 57.3%

Standard Life Investments UK Ethical

Asset manager Standard Life Investments

Fund manager Lesley Duncan 

Profile

Lesley Duncan was born in 1968 and gained a BA (Hons) in Business Economics (Finance) and an MPhil in International Finance. She has eight years of experience as a fund manager. Lesley started her career in 1993 at Botwell Asset Management, working as a Trainee Analyst responsible for the fundamental research of several UK sectors. In 1995, she joined Standard Life Investments as a Trainee Investment Analyst on the UK desk. From 1999-2001, Lesley became investment manager with responsibility for a UK segregated pension fund. She was appointed manager of the Standard Life Investments UK Ethical Fund in 2004.

Manager Rating A

Performance

1 Year: 23.99%

3 Year: 41.66%

5 Year: 85.82%

Related Fund Managers

Lesley Duncan
Lesley Duncan
19/151 in Equity - UK (All Companies) (Performance over 3 years) Average Total Return: 34.09%
Michael Fox
Michael Fox
41/151 in Equity - UK (All Companies) (Performance over 3 years) Average Total Return: 28.43%
Chris Wright
Chris Wright
30/151 in Equity - UK (All Companies) (Performance over 3 years) Average Total Return: 30.74%
Neil Brown
Neil Brown
21/151 in Equity - UK (All Companies) (Performance over 3 years) Average Total Return: 33.12%
Audrey Ryan
Audrey Ryan
105/151 in Equity - UK (All Companies) (Performance over 3 years) Average Total Return: 16.11%
Catherine Stanley
Catherine Stanley
46/151 in Equity - UK (All Companies) (Performance over 3 years) Average Total Return: 27.58%
Susan Round
Susan Round
101/151 in Equity - UK (All Companies) (Performance over 3 years) Average Total Return: 16.92%
Ben Ritchie
Ben Ritchie
147/185 in Equity - UK (All Companies) (Performance over 1 year) Average Total Return: 3.92%
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