Are you a Pure Returns Sustainable Saver?
9 June, 2022
Sponsored by M&G
Pure Returns is the name of the game here. It’s all about growing your savings as much as possible, without much concern for what you’ve invested in. However, that doesn’t have to mean ruling out sustainable investments – which often outperform their non-sustainable counterparts.
Who are 'Pure Returns' sustainable savers?
You're one of nearly eight million savers and investors in the UK.
You're more likely to be male and over the age of 55.
You're probably a keen recycler, eager to reduce your food waste.
How we pick the 'Pure Returns' funds
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 Pure Returns Funds
Have an overall Morningstar rating of 5 stars (out of 5)
Are in the top 2 performance quartiles over 1,3 and 5 years – this means that the returns fall in the top 50% of all similar funds
Are readily available on retail platforms
Have a Morningstar Sustainability Rating not lower than Average.
Over 10% returns over the last 3 years
Available on major retail platforms for purchase
So, which funds are the best performers?
Below are the best-performing Pure Returns 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.
Eco Warrior - Invest in green companies and tackle environmental issues like climate change, carbon neutrality and renewables.
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.
Moderate Greens - You're investing to prepare for your financial future and welcome opportunities to have a positive impact while you save.
To learn more about sustainable investing in general, check out our Sustainable Savers guide.