Ethical fund tops the UK market for first time

Green unit trusts finally moved from being fringe investments for the principled to the mainstream today (9 February 2007) when it emerged that for the first time a screened fund has topped the UK All Companies sector.

Of the 324 unit trusts in the UK all Companies sector the Co-operative Insurance Sustainable Leaders Trust is the best performing for the 12 months to 31 January 2007. The Fund provided a total return of 29.3 per cent, more than double the 13.2 per cent of the UK FTSE All-Share and 13.3 per cent achieved by the UK All Companies sector. The return over three years equally impressive at 88.6 per cent, compared to 61.8 per cent for the UK FTSE All-Share and 57.5 per cent by the UK All Companies.

Despite these strong performance numbers many investors remain reluctant to invest in SRI funds. Recent data from the Investment Management Association (IMA) revealed that ethical investments currently make up just one per cent of assets managed in investment funds.

Mike Fox, Fund Manager for CIS Sustainable Leaders Trust, said: “The excellent performance of SRI funds shows that these type of investments are now mainstream unit trusts that deserve to be taken seriously by all investors and not just those with ethical requirements.

“With key drivers that seek to take advantage of growth in ethical consumerism, increased awareness of climate change and takeover interest in businesses that have captured a share of the eco-pound, socially responsible investments are well placed for further growth in the future.”

Anyone presently considering using their ISA allowance ahead of the April deadline can invest into the CIS Sustainable Leaders Trust within an ISA wrapper. And until 30 April 2007 lump sum investments of £7,000 or more will receive a one per cent bonus as extra unit trusts, while regular savers can earn an additional two per cent by making monthly payments of £150 or more.