Holly Mckay
Holly MackayFounder and CEO
Avatar

Subscribe Now

Free of Charge

Avatar
    • Home • Advice • Common questions

    Any guidance on investing in sustainable, ethical funds with a proven track record of above average growth?

    07 July 2021

    Question by Richard

    Hi - My wife and I would like to invest longer term in a couple of sustainable, ethical funds with a proven track record of above average growth. Any guidance would be appreciated? Many thanks,

    Answered by

    Hi Richard,

    Thanks for your question. In investing terminology sustainable and ethical mean different things. Sustainable, Socially Responsible Investing (SRI), Environmental, Social & Governance (ESG) or Impact investing all relate to looking at companies that have a positive impact on the world. For instance, do they offset their carbon? Do their suppliers employ child workers in sweat shops? Do they invest in and safeguard their employees? Is the board of directors based on the old boy network or is it a diverse combination based on an individuals skill set?

    On the other hand, ethical investing is all about negative screening, so funds do not invest in gambling, pornography, alcohol, tobacco, guns but will invest in anything else.

    I am a big fan of SRI, Liontrust and Royal London both have a series of Sustainable funds with different risk ratings and have produced excellent results over all time periods in all markets since launch and often outperform their non SRI peers. When you think about it, we as consumers are becoming more aware of things like carbon offset, palm oil, single use plastic and are making consumer decisions based on this, so it is logical that companies that do act in a socially responsible way will be more profitable.

    Important stuffHolly and the team have worked in the finance industry for many years but we are not regulated to give you personal financial advice. For every story on this website about a good investment, or something which went up by 10% or made someone £200, we could also share a story about a bad investment, something which fell in value or lost someone £200. We aim to provide general information and pointers – and btw we are totally agnostic about which providers you might pick – but if you have complex affairs, want personalised advice or need specific recommendations, please look at advice pages and see if regulated digital or traditional financial advice would be the best solution for your needs. Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
    Risk warningAs is always the case with investing, your capital is at risk. The value of your portfolio can go down as well as up and you may get back less than you invest. Tax treatment depends on your individual circumstances and may change in the future.
    Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
    |

    We use cookies

    You will see cookie information on different websites and regulation means that we need to ask your permission to use them. We use cookies to improve our website, for analysis of our visitor data, to show personalised content and to give you a great website experience. For more information about the cookies we use open the settings.