Trusts with ‘tangible outcomes’ dominate best performers list

Interactive Investor has announced the most bought ethical funds in 2019

Ethical funds and investment trusts with strategies that are embracing mostly environmental tangible outcomes were the most popular in 2019, accounting for seven of the top 10 collective investment purchases, according to Interactive Investor.

The direct-to-consumer platform, which has published the most bought ethical options to the end of November 2019, found investment trusts dominated the top 10 list, with trusts taking the top three spots.

The Renewables Infrastructure Group topped the list, followed by Greencoat UK Wind and Syncona in third place.

In fourth place is the Royal London Sustainable World Trust fund and Impax Environmental Markets investment trust takes fifth place.

Rebecca O’Keeffe, head of investment at Interactive Investor, said: “Our top 10 list of investors’ favourite ethical investments features six investment trusts, three funds and one ETF.

“A number of the investments are sector specific, with clear ethical criteria, including investments in infrastructure, wind, health, solar and clean energy.”

The Stewart Investors Asia Pacific Leaders fund was the sixth most bought of 2019, followed by the Bluefield Solar Income fund, JLEN Environmental Assets Group and the Rathbone Ethical Bond fund.

The one exchange-traded fund to make the list is the iShares Global Clean Energy UCITS ETF in 10th place.

O’Keeffe said that interest in environmental, social and governance investments has been one of the key themes of this year.

“2019 has been a year where everyone has finally woken up to the impact of climate change and this means that investors are flocking to investments that offer not only a sustainable return for investors, but more importantly a sustainable future for the planet,” she added.

Interactive Investor categorises the ethical investing style of funds, investment trusts and ETFs into ‘avoids’, ‘considers’ and ‘embraces’ to help retail investors in their selection.