A number of investors are not solely interested in making money, but also in making a difference with their investments. Although there is a smaller choice of ethical or environmental investments, if you look in the right places you can find funds that are not just good because of their returns. Increasing government regulation and interest in investments with this focus could help the returns of funds in these areas in the future.
If you are interested in this area, also see Royal London Ethical Bond and Rathbone Ethical Bond under bonds, Hermes Global Emerging Markets under emerging markets, and Renewables Infrastructure Group and John Laing Environmental Assets Group under alternative assets.
NEW ENTRANT: Troy Trojan Ethical Income (GB00BYMLFL45)
Troy Trojan Ethical Income only launched in 2016, but over one and three years is well ahead of the FTSE All-Share index and IA UK Equity Income sector average. This may be partly due to the fact that Troy Asset Management’s UK equity income team, led by highly regarded manager Francis Brooke, has a much longer record of delivering good returns.