View more on these topics

Many ethical funds invest in firms that are ‘part of climate problem’

Few funds which are marketed as ethical and socially responsible investments actually buy in to firms which directly tackle climate change, according to adviser Holden Partners.

A new report by the firm, A Guide to Climate Change Investment, shows that most SRI and ethical funds top 10 holdings include investments in mainstream companies such as Vodafone and Bank of Scotland.

Many have significant holdings in mining corporations or the likes of Shell, BP, Renault, Nestlé and Danone.

Partner Peter Holden says investors who hope to support the low-carbon economy may discover they are buying into multinationals “more associated with being part of the problem rather than part of the solution”.

The company’s guide rates Henderson’s Industries of the Future fund most highly, with 51.1 percent of its fund in environmental solutions providers.

However, in contrast, environmental stocks made up less than 1 per cent of L Ethical Funds portfolio.

Holden says: “This report shows that the SRI and ethical funds have not kept pace with the public’s appetite for environmental solutions. Many are investing in mainstream old-economy companies whose contribution to solving environmental problems is questionable.

The report says that a selection of “pure-play” environmental investment vehicles have 100 per cent exposure to environmental solutions providers.

These include listed funds investing in worldwide listed stocks, such as Impax Environmental Markets Trust and Merrill Lynch New Energy Technology.

Other shining examples include private fund Triodos Renewable Energy Funds and Aim-listed funds investing in private companies, such as Low Carbon Accelerator and Ludgate Environmental Fund.

Holden says: “There are good environmental funds available. The environmental economy is enjoying strong growth and is an investment opportunity.”


Darling pledges help for mortgage market

Chancellor Alistair Darling has vowed to help the recovery of wholesale mortgage markets which he says are essential to stabilising the housing sector.In a speech to manufacturing group the EEF last week, Darling said that today’s housing market is in a much better shape than before the early 1990s’ crash. He added that the UK […]

Nearly half of advisers opt for just one platform

Nearly half of adviser firms are adopting just a single fund supermarket or wrap over operating multiple platforms, according to a new report. The study from CWC Research reveals 80 per cent of advisers see platforms as core to their strategy in the future – and 40 per cent are embracing a one platform model.CWC […]

Range rovers drive returns at New Star

New Star’s multi-manager team are attributing the outperformance of their active portfolio to its ability to invest in a range of asset classes and markets while measuring downside risk in every position it takes.

A shaw thing

Annie Shaw is a freelance financial journalistCan it be true that PR man Dominic Hiatt has a social conscience? I have learned that the leading light at newly renamed Rhizome PR and the spokesman for broker Cobalt Capital who is known as “The Polecat” is thinking of trading in his BMW Chelsea tractor.His voice was […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm