Guide to navigating impact funds launched

Guide to navigating impact funds launched

A comprehensive review of UK retail impact investment funds has been launched for financial advisers.

Impact investment hub Worthstone has launched a UK Retail Impact Investing Review for financial advisers, which it claimed is the first of its kind.

The research analyses the 201 impact investment funds registered for sale in the UK to help advisers choose suitable products.

Article continues after advert

The aim, according to Worthstone, is to help advisers build multi-asset portfolios with an impact focus, without compromising on returns, to meet client demand for socially responsible investments.

Impact funds can include those which use negative screening to exclude companies on the basis of ethical criteria, thematic funds with environmental or social themes, or leaders in environmental, social and governance standards.

Figures from the group point to impact investing gaining momentum for the last few years, and now boasts £87bn under management in the UK.

However, funds are often marketed under similar banners, so Worthstone encouraged advisers to conduct thorough research and product due diligence to understand the underlying specifics of each fund in the impact universe.

The research is the result of a collaboration with 3D Investing, which provides the fund ratings.

It will review impact funds ever six months. Recent rating upgrades have been made to The Henderson Global Care Growth fund, Quilter Cheviot Climate Assets, and Columbia Threadneedle Ethical UK Equity, for example.

Gavin Francis, CEO of Worthstone, said: “This comprehensive review of the UK impact market establishes that a fundamental building block is in place for the market to breach the mainstream as it is now possible to build a multi-asset portfolio using funds which have a positive impact dimension.”

James King, managing director of PB Financial Planning added: “More and more of our clients want to not only make positive financial returns, but also make a positive impact with their money. The difficulty for advisers is where do we get the information we need? My hope is that the UK Retail Impact Investing Review will help us.”