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Sustainable out performance and a dangerous game of Monopoly

Sustainable companies are the best investments but QE is a dangerous game of Monopoly
Sustainable out performance and a dangerous game of Monopoly

When it comes to eating, drinking and shopping, the things that are best for you are often the least exciting. But Bryn Jones, manager of Rathbone Ethical Bond Fund (GB00B7FQJT36), has proven that you don't need to sacrifice high returns for a healthy moral glow.

Rathbone Ethical Bond is the top-performing fund in the Investment Association (IA) Sterling Corporate Bond sector over one year with a return of 8.4 per cent and fourth over five years with a return of 41.9 per cent. It beats the majority of corporate bond funds, most of which don't have an ethical mandate, and its yield of 3.9 per cent places it among the top 10 yielders. 

Mr Jones says that's because some of the most sustainable companies are the best investments. "Think about all the things that have gone wrong with companies in recent years, from the Enron scandal to [the emissions scandal at] Volkswagen (VW:SWX), [the oil spill in the Gulf of Mexico caused by] BP (BP.), the Co-operative Bank and Provident Financial (PFG)," he explains. "Those companies have all been doing something that's not ethical, not good governance and not good for society."

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