Bond Funds for Ethical Investors

Ethical bond fund managers reveal which sectors and themes they favour and why UK government debt is not yet green enough

Holly Black 14 November, 2019 | 11:25AM

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Fixed income funds can also offer plenty of opportunities for those looking to invest in a sustainable way. Ethical, impact and sustainable bond funds look to invest in the debt of companies which meet their criteria while also delivering a ripe yield.

The Kames Ethical Corporate Bond fund takes a “dark green” approach to investing, screening out around 50% of the potential investment universe. The fund won’t hold bonds issued by companies that derive revenues from any unethical activities including tobacco, arms, gambling and animal testing. It even rules out UK Government gilts because money loaned to the government is not ring-fenced.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Aviva PLC279.30 GBP0.00
Barclays PLC91.97 GBP0.00
Kames Ethical Corporate Bond GBP B Acc212.03 GBP-0.36
Orsted A/S860.00 DKK0.00
The Royal Bank of Scotland Group PLC96.46 GBP0.00
Threadneedle UK Social Bd Z Inc£1.14 GBP-0.19

About Author

Holly Black  is Senior Editor,

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