The 10 best performing ESG funds in 2018

Demand for environmental, social and governance funds has increased this year. Here are 10 of the best performing funds.

This year demand for environmental, social and governance (ESG) funds has increased substantially, and new funds have been launched as a result. 

This is set to continue in 2019, as concern for the planet's sustainability, and the impact of certain investments on communities and individuals, receives more attention.

With that in mind, here are the best performing ESG funds for sale in the UK in 2018. 

This year demand for environmental, social and governance (ESG) funds has increased substantially, and new funds have been launched as a result. 

This is set to continue in 2019, as concern for the planet's sustainability, and the impact of certain investments on communities and individuals, receives more attention.

With that in mind, here are the best performing ESG funds for sale in the UK in 2018. 

10.

Fund: Fisher Investments Inst Emerg Mkts Equity ESG USD

Manager: Fisher Asset Management

Asset allocation:

  • Equity: 97.2%
  • Cash: 1.5%%
  • Other: 1.3%

2018 performance: -9.25% 

Fisher Investments' emerging markets equity ESG fund is currently overweight technology, and marginally overweight financial services. Top holdings include multi-national technology holdings conglomerate Tencent, whose above average ESG credentials mark it out among peers. 

View the full fund fact sheet here.

9.

Fund: Fisher Investments Inst EmgMkts SC Eq ESG USD

Manager: Fisher Investments

Asset allocation:

  • Equity: 99.4%
  • Cash: 0.6%

2018 performance: -7.56%.

Fisher Investments' institutional emerging markets small cap ESG fund cites growth as its primary objective. Although it ends the year falling some way short of positive performance, it does finish 2018 with performance very close to the Citywire benchmark. Its top holdings include multi-national communications company Alibaba, whose own performance looks set to end the year below its 2018 starting point. 

View the full fund fact sheet here.

8.

Fund: MSCI Emerging Markets ESG Equity I USD

Manager: Morgan Stanley Investment Management

Asset allocation:

  • Equity: 99.4%
  • Cash: 0.6%

2018 performance: -3.93%.

Morgan Stanley's emerging markets ESG fund holds £503.3 million in investors' money and has hugged the Citywire benchmark closely this year. The fund launched in 2015. 

View the full fund fact sheet here.
 

 

7.

Fund: Hermes Global Equity ESG F GBP Acc

Manager: Geir Lodie 

Asset allocation:

  • Equity: 97.4%
  • Cash: 2.6%
  • Other: 0.06%

2018 performance: 1.44%.

Hermes' ESG offering appears to be heading for a year-end well below the benchmark, but has returned 1.4% throughout 2018. It has been investing primarily in financial services firms (19.48%) with technology and healthcare close behind (17.96% and 13.60%). Top three holdings include Amazon, Apple and Thermo Fisher Scientific Incorporated. 

View the full fund fact sheet here.
 

 

6.

Fund: Schroder ISF QEP Global ESG I Acc EUR

Manager: Justin Abercrombie

Asset allocation: 

  • Equity: 91.3%
  • Cash: 8.9%
  • Other: 0.01%

2018 performance: 3.54%.

Fund manager Justin Abercrombie is currently most invested in financial services (20.43%), healthcare (15.40%) and technology, sectors he is underweight, overweight and underweight in, respectively. The fund has returned 3.5% this year, but remains significantly below benchmark at the end of the year. Top holdings include United States Treasury bills, which according to some analysts suffered a 'massacre' in July this year. 

View the full fund fact sheet here.
 

 

5.

Fund: Fidelity Funds FIRST ESG All Country Wld A-ACC-EUR

Manager: Fidelity International

Asset allocation:

  • Equity: 97%
  • Cash: 2.4%
  • Fixed income: 0.6%

2018 performance: 3.54%.

Fidelity's all country ESG fund has been marginally underweight its biggest sector, with a 19.86% holding in technology. It has been overweight financials this year (18.21%) and overweight healthcare (16.03%). Top holdings include Verizon Communications, whose recovery this year has fuelled the fund's performance and eventual returns of 3.54%.

View the full fund fact sheet here.
 

 

4.

Fund: State Street MultiFactor Global ESG Equity Fund

Manager: State Street Global Advisors

Asset allocation: 

  • Equity: 97.5%
  • Cash: 1.3%
  • Other: 1.2%

2018 performance: 3.93%.

State Street's MultiFactor Global ESG Equity Fund has spent the entire year below the Citywire benchmark, though it has returned investors 3.93% to date. It has been overweight financials (21.41%), overweight technology (19.49%) and overweight in industrials (14.02%), which have been its top sectors. Top holdings include Warren Buffett's Berkshire Hathaway, whose own top holdings could land it with an $18 million loss in the final quarter of this year, analysts suggest. 

View the full fund fact sheet here.

 

3. 

Fund: Goldman Sachs Gl Eq Partners ESG Pf Base Acc Snap

Manager: Suneil Mahindru

Asset allocation:

  • Equity: 95.2%
  • Cash: 4.8%

2018 performance: 6.51%.

Goldman's ESG fund has spent the year hugging the Citywire benchmark. Its top three sectors are technology (19.91%), healthcare (18.58%) and industrials (17.03), sectors in which the fund is overweight. Its top holding is global biopharmaceutical giant Shire PLC, which has enjoyed steady performance in the final two quarters of the year after March lows. 

View the full fund fact sheet here.

2.

Fund: Davy ESG Equity Fund A Acc

Managers: Des Flood and Brian Kennedy

Asset allocation:

  • Equity: 98.3%
  • Cash: 1.7%

2018 performance: 8.03%.

Des Flood and Brian Kennedy's ESG fund has hugged the benchmark throughout 2018, breaking free to outperform in the final quarter of the year 2018. The top three sectors the fund invests in are technology (22.49%), consumer cyclical (20.12) and financial services (17.07), all sectors in which the fund is overweight. Top holdings include Australian gambling machine manufacturer Aristocrat Leisure, which now looks set to finish the year below where it started in January. 

View the full fund fact sheet here.


 

 

1.

Fund: Fisher Investments Inst US SC Core Equity ESG USD

Manager: Fisher Investments

Asset allocation:

  • Equity: 99.3%
  • Cash: 0.7%

2018 performance: 10.49%

Fisher Investments' US Core Equity ESG fund has substantially outperformed the benchmark this year. The continuing domination of FAANG stocks has no doubt boosted the fund, as it invests primarily in US equity securities. 

View the full fund fact sheet here.
 

 

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