Do you want to avoid putting your money in fast-food firms and companies drilling for oil in the Arctic? If so, your options have historically been limited and unappetising. Funds specialising in green investing have a reputation for poor performance. Indeed, many view them as “a niche activity for sandal-wearers willing to sacrifice profits”, says Sally Hamilton in The Mail on Sunday.
But one fund bucking the trend is the Triodos Sustainable Pioneer Fund. The Dutch ethical bank only opened this fund to UK investors in April 2013, but since then it has beaten its benchmark, delivering a return of 18% over two years and 11.1% over one year – double the return on the FTSE All-Share, says Hamilton.
Operating from Holland, manager Eric Holterhues picks “pioneers” in sustainable energy, medical and environmental technology and corporate social responsibility. “We believe these firms are more sustainable and in the long term will be the most… profitable,” Holterhues told The Mail on Sunday.
He has 80 mostly small and medium-sized holdings, including electric car maker Tesla Motors, organic supermarket chain Whole Foods and Danish renewable energy provider Vestas Wind Systems. But the fund was criticised at launch for holding stakes in firms such as Google and Starbucks, which have been accused of tax avoidance; Google was sold this year due to concerns about arms-related applications of its robotics research.
The fund has a pricey initial charge of 3%, with ongoing expenses of 1.16% in 2014. You can only invest directly through Triodos, although the firm offers its own Isa wrapper for tax-free investing.
Contact: 0800-328 2181.
| Triodos Sustainable Pioneer’s top ten holdings | |
|---|---|
| Holding | % of assets |
| Tesla Motors | 4.2% |
| SunEdison | 3.8% |
| PerkinElmer | 3.5% |
| Edwards Lifesciences | 3.3% |
| Hain Celestial Group | 3.3% |
| Vestas Wind Systems | 3.3% |
| SunPower | 3.0% |
| WhiteWave Foods | 2.8% |
| Chipotle Mexican Grill | 2.7% |
| Xylem | 2.7% |