Three funds that make money AND make a difference

This Sunday, 30 October, marks the start of Good Money Week. The campaign is designed to raise awareness of sustainable, responsible and ethical finance to help people make good money choices.

FundCalibre is getting involved and we’ve picked three funds that could make a difference and make money.

1. EdenTree Amity UK

As a pioneer of responsible investing, EdenTree offers even the most discerning client a justifiable investment opportunity. The Amity UK fund is run by Sue Round, one of the country’s longest-serving ethical managers, who has more than 25 years’ experience. The fund invests in a large number of smaller companies, making it different to many of its peers.

2. Rathbone Ethical Bond

The Rathbone Ethical Bond fund invests in quality investment grade bonds. It has a higher income target than most of its peers and ethical exclusions are simple: no mining, arms, gambling, pornography, animal testing, nuclear power, alcohol or tobacco, which rules out about one third of the stock market. All investments must also have at least one positive environmental, social or corporate governance quality.

3. Standard Life Investments UK Ethical

This fund encapsulates the best ideas from the experienced team at Standard Life Investments, which manager Lesley Duncan uses alongside a ‘no compromises’ ethical screening. Lesley will have between 50 and 100 holdings, and will look to keep them for three to five years, expecting them to grow in value, and also provide some income, though this isn’t the key focus.

Our view

Clive Hale, director of FundCalibre, commented: “To us, responsible investing covers a number of areas including, but not exclusive to, sustainable, socially conscious, environmentally responsible or ethical businesses.

“We believe that funds incorporating a responsible ethos in their investment process will play an increasingly important role in investors’ portfolios in the coming years. We have therefore developed a responsible investing sector to help investors find the best of breed funds in this area.”

This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Past performance is not a reliable guide to future returns. Market and exchange-rate movements may cause the value of investments to go down as well as up. Yields will fluctuate and so income from investments is variable and not guaranteed. You may not get back the amount originally invested. Tax treatment depends of your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of any investment you should seek professional advice. Whilst FundCalibre provides product information, guidance and fund research we cannot know which of these products or funds, if any, are suitable for your particular circumstances and must leave that judgement to you. Before you make any investment decision, make sure you’re comfortable and fully understand the risks. Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.