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.”

The views of the author and any people interviewed are their own and do not constitute financial advice. 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. Before you make any investment decision make sure you’re comfortable and fully understand the risks. If you invest in fund or trust make sure you know what specific risks they’re exposed to. Past performance is not a reliable guide to future returns. Remember all investments can fall in value as well as rise, so you could make a loss.