This Good Money Week, investment platforms have shared the ethical and responsible funds most popular with their customers.
Renewable energy funds and investment trusts accounted for seven of interactive investor’s top 10 bestselling ethical funds and trusts, while flows into responsible funds on Hargreaves Lansdown’s platform are up 17% to far this year compared with the same period last year.
Topping interactive investor’s long list of more than 140 ESG funds, investment trusts and ETFs this year is investment trust Greencoat UK Wind, followed by Gore Street Energy and The Renewables Infrastructure Group.
Myron Jobson, personal finance campaigner at interactive investor, said: “Funds focused on the ‘E’ for environmental in ESG continues to dominate the list of platform bestsellers. Interestingly, budding interest in these portfolios could be down to the level of income on offer.
A recent interactive investor poll of 1,617 people found the UN’s Intergovernmental Panel on Climate Change report had caused just under two fifths (39%) of respondents to say they were more likely to invest in ‘green’ investments as a result of report’s key findings.
Most bought ethical funds/investment trusts on interactive investor ethical long list this year (to 27 September 2021).
| Position | Investment | Fund/Investment trust |
| 1 | GREENCOAT UK WIND | Investment trust |
| 2 | GORE STREET ENERGY | Investment trust |
| 3 | THE RENEWABLES INFRASTRUCTURE GROUP | Investment trust |
| 4 | NEXTENERGY SOLAR FUND | Investment trust |
| 5 | FORESIGHT SOLAR FUND | Investment trust |
| 6 | LIONTRUST SUSTAINABLE FUTURE GLOBAL GROWTH | Fund |
| 7 | CIVITAS SOCIAL HOUSING | Investment trust |
| 8 | JLEN ENVIRONMENTAL | Investment trust |
| 9 | STEWART INVESTORS ASIA PACIFIC LEADERS SUSTAINABILITY FUND | Fund |
| 10 | BLUEFIELD SOLAR INCOME | Investment trust |
Meanwhile, flows into responsible funds at Hargreaves Lansdown have hit another record high this year, up 17% from last year, with active ESG funds accounting for 73% of that.
“2020 was a record-breaking year for flows into sustainable, ethical, ESG and impact funds,” said Emma Wall, head of investment analysis at Hargreaves Lansdown.
“Expectations for 2021 flows were therefore muted after such a strong preceding year, but once again HL clients have put their money where their morals are and in-flows to responsible investment funds have hit yet another record high.”
She added: “The past 18 months has accelerated certain social and economic movements, but the new norm of e-commerce, low-carbon, flexi-working, re-use and repair households are here to stay – as is investors holding businesses accountable for their actions and impact.”
Most popular ESG funds on the HL Platform 2021 (by total net flow, alphabetical order)
| Top ESG funds 2021 to date (alphabetical) |
| Aegon Ethical Equity Fund |
| BNY Mellon Sustainable Real Return |
| Fundsmith Sustainable Equity |
| Guinness Sustainable Energy |
| Legal & General Future World ESG Developed Index |
| Liontrust SF Global Growth |
| Ninety One Global Environment |
| Royal London Sustainable World |
| Stewart Inv Indian Subcontinent Sustainability |
| Vanguard ESG Developed World All Cap Equity |
