Responsible fund ideas

This fund aims to provide a resilient income by investing globally across a diversified range of assets. It combines stewardship, ESG integration and exclusions.

There are three broad categories of investments in the fund: shares, real assets and bonds. The amount invested in each asset changes over time based on the managers’ long and shorter-term views of the world. However, over the long term the fund will have roughly a third of its assets in each of these sections.

The fund applies a screening process to avoid companies that are non-compliant with the UN Global Compact Principles (a United Nations pact on human rights, labour, the environment and anti-corruption). It also screens out companies with significant revenues coming from military weapons systems and components, fossil fuel extraction and production, thermal coal distribution, and tobacco production.

As part of their company assessments, the managers also consider a number of different sustainability metrics and assign each company an overall score. This helps them compare different companies’ sustainability credentials. Those that are considered leaders within their sector are preferred. However, they won’t invest in the lowest scoring companies.

The managers have the flexibility to invest in emerging markets, high yield bonds and derivatives, which adds risk. The fund also takes charges from capital, which could boost the income, but reduces the potential for capital growth.

Performance

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

How to invest

Please read the key features / key investor information for Baillie Gifford Monthly Income (Class B) in addition to the information in this review.

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A UK-focused fund with a focus on higher-risk small and medium-sized companies. It combines stewardship, ESG integration and exclusions. It doesn’t invest in companies with significant revenue exposure to areas like tobacco, arms and gambling.

The fund's investment universe is filtered for 'sin stocks' by Aegon's Responsible Investment Team. This negative screening process is kept separate from manager Audrey Ryan and the rest of her team, leaving them free to focus on stock selection and portfolio construction. ESG is key to the fund's investment process. Ryan and her team aim to identify and understand the main environmental, social and governance risks of each company, industry and sector they invest in. They believe companies that lead the way in governance and sustainability could outperform over the long run.

Audrey Ryan has been at the helm of this fund for more than 25 years and is a knowledgeable and passionate ethical investor. This gives us confidence in the fund’s long-term prospects, although past performance is not a guide to the future.

Performance

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

How to invest

Please read the key features / key investor information for Baillie Gifford Monthly Income (Class B) in addition to the information in this review.

Find out more

This fund aims to provide a good level of income alongside capital growth over the long term. It combines stewardship, ESG integration and exclusions. It mainly invests in the UK, but the manager also invests up to 20% overseas.

Andrew Jones has been at the helm of this fund since January 2012 and has over 25 years of experience managing UK equity income funds. The fund doesn’t invest in companies with significant exposure to products and services some investors consider unethical, such as alcohol, armaments, gambling, non-medical animal testing, nuclear power, tobacco and fossil fuel power generation (although companies generating power from natural gas may be allowed if the company's strategy includes a clear plan to transition to renewable energy power generation).

All investments must also be compliant with the UN Global Compact Principles (a United Nations pact on human rights, labour, the environment and anti-corruption), and before adding any company to the fund, the manager carries out detailed ESG analysis, engaging with company managers if he feels there’s room for improvement.

Please note the manager has the flexibility to invest in smaller companies, which adds risk. The fund also takes charges from capital, which could boost the income, but reduces the potential for capital growth.

Performance

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

How to invest

Please read the key features / key investor information for Janus Henderson UK Responsible Income in addition to the information in this review.

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This fund aims to replicate the performance of the Solactive L&G Enhanced ESG Emerging Markets Index. It combines stewardship, ESG integration and exclusions.

This fund provides broad exposure to emerging markets by tracking the Solactive L&G Enhanced ESG Emerging Markets Index. The index is made up of around 1,900 companies spread across a range of countries including Taiwan, India and China. These markets are higher-risk as they're at an earlier stage of development, so this fund should only be considered for a portfolio with a longer investment outlook that can accept periods of high volatility. The fund also invests in smaller companies, which adds further risk.

The index increases investments in companies that score well on a variety of ESG criteria – from the level of carbon emissions generated, to the number of women on the board and the quality of disclosure on executive pay. It also reduces exposure to companies that score poorly on these measures.

The fund won't invest in persistent violators of the UN Global Compact Principles or those with significant involvement in tobacco, adult entertainment, gambling, civilian firearms, military weapon system manufacturing, thermal coal and oil sands. Controversial weapons (such as cluster munitions, anti-personnel mines and chemical and biological weapons) are also excluded.

On top of this, the fund adopts a decarbonisation pathway. This means it aims to reduce emissions by 7% per year until 2050.

Performance

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

How to invest

Please read the key features / key investor information for Legal & General Fut Wrld ESG Tilted & Opt Emg Mkts in addition to the information in this review.

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This fund aims to track the performance of the Solactive L&G ESG Developed Markets Index. It combines stewardship, ESG integration and exclusions.

The Legal & General Future World ESG Tilted & Optimised Developed Index is made up of around 1,300 companies based across the globe, which is currently focused towards sectors such as technology, pharmaceuticals and financials. The index increases the weighting in companies that score well on a variety of ESG criteria – from the level of carbon emissions generated, to the number of women on the board and the quality of disclosure on executive pay. It also reduces the allocation to companies that score poorly on these measures.

The fund won't invest in persistent violators of the UN Global Compact Principles (a UN pact on human rights, labour, the environment and anti-corruption) or companies with significant involvement in tobacco, adult entertainment, gambling, thermal coal, oil sands, military weapon systems manufacturing and civilian firearms. Controversial weapons (such as cluster munitions, anti-personnel mines and chemical and biological weapons) are also excluded.

Additionally, the fund is managed to achieve at least a 7% reduction in carbon emissions per year until 2050.

The fund’s investments in smaller companies add risk.

Performance

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

How to invest

Please read the key features / key investor information for Legal & General Future Wrld ESG Tilted & Opt Dev I in addition to the information in this review.

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This fund aims to perform broadly in line with the UK stock market by tracking the Solactive L&G Enhanced ESG UK Index. It combines stewardship, ESG integration and exclusions.

The Legal & General Future World ESG Tilted & Optimised UK Index provides broad exposure to the UK stock market, while being mindful of ESG issues. Its benchmark, the Solactive L&G Enhanced ESG UK Index, is made up of around 300 companies spread across the whole of the UK market.

The index increases investments in companies that score well on a variety of ESG criteria – from the level of carbon emissions generated, to the number of women on the board and the quality of disclosure on executive pay. It also reduces exposure to companies that score poorly on these measures.

The fund won't invest in persistent violators of the UN Global Compact Principles (a UN pact on human rights, labour, the environment and anti-corruption) and companies that are involved in controversial weapons. It also excludes companies that earn a significant proportion of their revenues from tobacco, adult entertainment, gambling, civilian firearms, military weapon system manufacture, thermal coal and oil sands. On top of this, the fund adopts a decarbonisation pathway. This means it aims to reduce emissions by 7% per year until 2050.

Investors should note the fund invests in smaller companies, which adds risk.

Performance

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

How to invest

Please read the key features / key investor information for Legal & General Future Wrld ESG Tilted & Opt UK Id in addition to the information in this review.

Find out more

This fund aims to deliver a combination of income and capital growth over the long term by investing mostly in sterling-denominated, investment grade corporate bonds. It uses a Sustainability Focus label, and also incorporates stewardship, ESG integration and exclusions.

The fund’s managed by a team of three: Kenny Watson, Aitken Ross and Jack Willis. They aim to identify bonds issued by high-quality companies whose core products or services make a positive contribution to society or the environment. The fund also employs negative screening. This means it won’t invest in any company that makes more than 5% of its revenues from animal testing services, coal, oil & gas, gambling, intensive meat and fish farming, nuclear, ozone depleting substances, pornography, tobacco or weapons systems.

The managers have the flexibility to invest in derivatives and high yield bonds which, if used, adds risk. The fund takes charges from capital, which can increase the income on offer but reduces the potential for capital growth.

Performance

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

How to invest

Please read the key features / key investor information for Liontrust SF Corporate Bond 2 & 6 in addition to the information in this review.

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This fund invests in companies across the globe that help to address long-term demographic, environmental and resource challenges. They must also have strong prospects in their own right and be available at an attractive price. It uses a Sustainability Impact label, but also incorporates stewardship and ESG integration.

The team behind this fund invests in high quality companies whose products and services provide solutions to key sustainability challenges. It focuses on nine sustainable investment themes, which range from resource efficiency and sustainable transport to education and wellbeing.

The managers’ flexibility to invest in emerging markets and smaller companies adds risk.

Performance

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

How to invest

Please read the key features / key investor information for Liontrust SF Corporate Bond 2 & 6 in addition to the information in this review.

Find out more