Are you a Moderate Greens Sustainable Saver?
9 June, 2022
Sponsored by M&G
Moderate Greens invest to prepare for their own financial futures, but know their investments can do more. So they welcome opportunities to have a positive impact while they save, especially if it’s good for the environment. After all, we make the world we leave for our kids and family.
9 million savers and investors in the UK
Fairly even gender split
More than half…
✓ Reduce food waste
✓ Shop locally
✓ Limit single use plastic
Funds suggested by Morningstar
We work with global research firm Morningstar who supply us with data every three months. We then map the funds to each type of investor and their stated preferences.
The Moderate Greens funds
Are in the top 2 performance quartiles over 1 and 3 years – this means that the returns fall in the top 50% of all similar funds
Have an overall Morningstar rating of 3, 4 or 5 stars (out of 5)
Have a High Morningstar Sustainability Rating
Have a Carbon Risk Score of under 7 - this score maps the overall carbon impact of the investments held, their supply chains etc
Available on major retail platforms for purchase
So, which funds are the best Moderate Greens performers?
Below are the best-performing Moderate Greens funds. Click on each fund to be redirected to Morningstar-hosted factsheets, where you can read their technical research view and assess a fund's sustainability rating and its Environmental, Social and Governance scores.
What do these terms mean?
Carbon risk score
In layman's terms, this measures the carbon risks of a fund. Funds with lower carbon risk scores will have less exposure to fossil fuels and/or include companies that are reducing their carbon emissions in line with the Paris Agreement.
This is when you convert the returns of an investment into a yearly rate. For example, if one fund generates 2% returns during the first three months of 2022, that would convert to an annualised return of 8%, whereas a fund generating 5% returns over a six-month period would convert to an annualised return of 10%.
Morningstar Sustainability Rating
This measures the environmental, social and corporate governance (ESG) of about 20,000 mutual fund and exchange-trade funds. It is considered a reliable metric for measuring the sustainability profile of a fund's underlying holdings.
Interested in sustainable investing but not sure if these funds are right for you?
Maybe you're one of the below!
Figure out where you might fit in. Click on each link below to learn more and discover the best-performing funds.
Pure Returns - You want to grow your savings as much as possible but you don't necessarily want to rule out sustainable investments, which can sometimes outperform the rest of the market.
Future Focus - You champion positive, long-term change and put the impact of your investments first, returns second.
No Nasties - You won't invest in anything that causes harm, like tobacco or weapons. Grow your savings with peace of mind.
Diligent Savers - You think sustainable investments can stand the test of time and are interested in supporting reputable companies.
Eco Warrior - Invest in green companies and tackle environmental issues like climate change, carbon neutrality and renewables.
To learn more about sustainable investing in general, check out our Sustainable Savers guide.