Three standout ESG funds for long-term growth

By Juliet Schooling Latter on 22 April 2026 in Specialist investing

Most investment managers embrace environmental, social and governance (ESG) factors when building portfolios. It helps identify ethical companies that behave responsibly and sustainably, as well as being financially sound. But which funds are most suitable for investors who want ESG to be a primary focus? Here are three that are worth considering.

CCLA Better World Global Equity

This is a global equity fund that aims to provide capital growth and income over the long term, defined as at least five years. It’s managed in line with CCLA’s ‘Better World’ policy, which is focused on generating total returns while simultaneously driving positive changes. This includes being a catalyst for change, shunning unacceptable sectors such as tobacco companies, and investing in ways that are aligned with its investors.

Management: The fund’s experienced lead manager, Charlotte Ryland, has a strong background in managing global equities and multi-asset portfolios. She will usually invest in between 70 and 90 high-quality companies that can grow returns consistently and should lead to long-term outperformance. Key qualities for potential holdings include competitive advantages, being beneficiaries of growth trends, strong balance sheets, and attractive valuations.

Positioning: The fund currently has 68 holdings, with the 10 largest accounting for 25.8% of funds under management. The biggest individual holdings, meanwhile, include multinational giants Alphabet (4%), Microsoft (3.5%), TSMC (3.5%) and Amazon (3%)*. It’s also diversified across sectors. Information technology has the largest share of 23.5%, followed by the 22.9% in financials and the 14.2% in consumer discretionary*.

Our view: We believe this fund’s benchmark-agnostic, responsible approach of investing in quality businesses at attractive prices is one of the reasons for its success. The fund has provided strong returns with a lower volatility than its peers. It should be a strong contender for anyone wanting a global fund with an ethical focus.

CT Responsible Global Equity

This is another global equity fund investing in quality companies around the world – but with a particular focus on sustainability. The portfolio aims to achieve capital growth over the long term, while addressing the seven key sustainability themes facing the world. These are: Energy transition, resource and efficiency, sustainable infrastructure, sustainable finance, societal development, health and well-being, and technological innovation & inclusion.

Management: Its managers, Jamie Jenkins and Nick Henderson, are stock pickers with long-term approaches that tend to favour medium-sized companies. Their portfolio is built around a robust “avoid, invest, improve” philosophy, having tapped into the expertise of more than 40 investment experts. This independent sustainability team ensure standards are maintained and that there’s strong post-investment engagement with company management teams.

Positioning: The fund currently has 59 holdings, with the top 10 accounting for almost 40% of assets under management. NVIDIA is the largest individual holding with an 8.1% share, followed by 5.3% in Microsoft and 4.8% in Apple. Other prominent names include Mastercard and Eli Lilly*. The US has the most significant geographic allocation of 71%, although there’s also exposure to countries such as Japan, the UK, Taiwan, the Netherlands and Ireland*.

Our view: The strength of the responsible investing team, a separate unit that delivers bespoke analysis, makes this fund stand out from the crowd. We believe the fund’s process is very thorough, with in-depth analysis of companies, while the concentration enables it to be an active core global equities fund.

Liontrust Sustainable Future Monthly Income Bond

Our final suggestion is from the world of fixed income. This fund aims to produce a monthly income with some capital growth by investing in corporate and government bonds. ESG is a primary feature of Liontrust’s investment strategy for this fund, with each element given equal importance in stock analysis. Every company held in the portfolio is given a Sustainability Matrix rating that measures product sustainability and management quality.

Management: The fund is co-managed by the experienced trio of Jack Willis, Kenny Watson and Aitken Ross. All of them approach the fund analytically. The managers consider aspects such as interest rates and the political backdrop before targeting bonds issued by high-quality companies that stand apart from their competitors. They also have the flexibility to move between shorter- and longer-dated bonds to take advantage of interest rate changes.

Positioning: The fund currently has 69 holdings, with the average credit quality being BBB+. NatWest Group, ING Group and HSBC Holdings are among the most prominent credit issuers*. At least 80% of the portfolio will be held in investment-grade corporate bonds that are either sterling-denominated or hedged back into the currency. As far as sectors are concerned, core financials has a 40% share of assets, followed by the 18.1% in utilities The other areas, each worth less than 10%, include telecommunications and industrials*.

Our view: We like the managers’ analytical and flexible approach – and the fact that Kenny and Aitken worked together for many years. The monthly income is another positive for would-be investors, as is the fund’s track record of delivering an attractive yield.

Research the funds in this article

*Source: fund factsheet, February 2026