Five ethical fund picks for investors looking to do good
By Sonia Rach, 1 Oct 18
Analysts reveal their top picks among UK funds
The Kames Ethical Equity fund was singled out by Hargreaves Lansdown senior analyst Laith Khalaf who labelled manager Audrey Ryan (pictured) as “one of the best” in the ethical space.
“She’s a passionate ethical investor who uses a strict approach, excluding certain areas completely.
“Tobacco and alcohol producers, munitions manufacturers, and companies that use animal testing won’t find a place in this particular portfolio.”
FE data shows that this fund has underperformed against the IA UK All Companies sector over one-year and three-years, with returns of 5.0% and 20.2% compared with 6.7% and 32.8%.
However, on a five-year scale, it has performed marginally better, returning 43.6% versus the sector’s 43.3%.
Khalaf said: “The fund’s done exceptionally well since Audrey Ryan took control in January 1999. It’s grown 282.2% compared with 196.3% for the broader UK stock market, helped by exposure to medium and smaller companies.
“The fund can’t invest in 69% of the UK’s largest companies because they operate in areas like oil & gas, tobacco and munitions, which leads the manager further down the cap scale.
“This is a higher risk approach but one which comes with higher rewards for successful active investors.”
Tags: ESG
