Worthstone, a firm providing a “social impact investment service” for financial planners and fund pickers, has launched a new star rating service which ranks funds in terms of their positive ethical impact.
In its UK Retail Impact Investing Review, it highly rates Columbia Threadneedle Ethical UK Equity, Henderson Global Care UK Income and Liontrust SF UK Growth as funds that have a higher-than-average focus on positive investments and avoid contentious ethical areas.
The report, created in partnership with ratings firm 3D Investing, said: “The Liontrust team has a particularly good internal research team and adopts a thematic approach.
“The fund manager of the Columbia Threadneedle Ethical UK Equity Fund is personally committed to the principles of the fund and the stock selection is indicative of the desire to make a positive difference.
“The Henderson Fund may be considered for those investors seeking income given its income mandate and yield.”
Funds with a high rating may exclude companies from stock selection based on their ethical criteria, be leaders in ESG or focus their investment on environmental and social themes.
Lower rated funds, such as the iShares Global Water Ucits ETF, Royal London Sustainable Managed Growth Trust and Royal London Sustainable Diversified Trust were judged less-ethical due to their exposure to “ethical controversies” and limited impact on social or environmental issues.
