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As part of the ESG special report week, we’ve updated our popular story from 2023 profiling the top-rated sustainable funds available to UK investors.
This shows that higher returns can be achieved without compromising on environmental, social and governance concerns.
• L&G Global Technology Index
• SVS Sanlam North American Equity Fund
• Axiom Concentrated Global Growth Equity Fund
We screened the funds with a Morningstar Sustainability Rating and narrowed those down to those with 4 and 5 Globes, which means they are rated as Above Average or High on ESG issues. These funds must also have a Morningstar Medalist Rating of Bronze and above, so that will capture our highest-rated funds of Bronze, Silver and Gold. Looking at funds for sale in the UK brings up 248 funds (one less than last year). That drops dramatically when we look at Silver and Gold-rated funds and (116), even more if we only screen for funds with 5 Globes. There are only 11 funds with the highest Sustainability and Medalist Ratings. Last year there were 14.
On the return side, we have included figures for year-to-date return and five-year return (annualised). Ideally we’d look at 10-year return but in many cases that’s not feasible – many of the funds with high sustainability rating are relatively new – so five years is the next best thing.