3 Funds for ESG Investing

With thousands of funds to choose from, finding the right ESG option for your portfolio can be difficult. We look at three options

Holly Black 20 July, 2020 | 12:08AM

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With so many funds to choose from, it can be difficult to find an ESG fund that matches your world view and also delivers strong returns. We look at three open-ended funds, each with a sustainable investing focus, which are rated by Morningstar analysts: 

For Fixed Income Investors: Royal London Ethical Bond 

The Bronze-rated Royal London Ethical Bond fund takes a fairly traditional approach to choosing corporate bonds to invest in, excluding any debt issued by any companies that fail its ethical criteria. This means the firm won’t invest in the bonds of firms which get more than 10% of their revenue from areas such as alcohol, arms, gambling and tobacco. However, it is worth pointing out, that unlike many sustainable funds there are no aspects of positive screening in the process, whereby funds seek out companies making a positive impact. 

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About Author

Holly Black  is Senior Editor, Morningstar.co.uk

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