Best Performing Sustainable Funds in 2024

The
Best
Performing
Sustainable
Funds
over
Five
Years:

• L&G
Global
Technology
Index
• SVS
Sanlam
North
American
Equity
Fund
• Axiom
Concentrated
Global
Growth
Equity
Fund

The
ESG
Screen 

We
screened
the
funds
with
a Morningstar
Sustainability
Rating and
narrowed
those
down
to
those
with
4
and
5
Globes,
which
means
they
are
rated
as
Above
Average
or
High
on
ESG
issues. These
funds
must
also
have
a
Morningstar
Medalist
Rating
of
Bronze
and
above,
so
that
will
capture
our
highest-rated
funds
of
Bronze,
Silver
and
Gold.
Looking
at
funds
for
sale
in
the
UK
brings
up
248
funds
(one
less
than
last
year).
That
drops
dramatically
when
we
look
at
Silver
and
Gold-rated
funds
and
(116),
even
more
if
we
only
screen
for
funds
with
5
Globes.
There
are
only
11
funds
with
the
highest
Sustainability
and
Medalist
Ratings.
Last
year
there
were
14.

 On
the
return
side,
we
have
included
figures
for
year-to-date
return
and
five-year
return
(annualised).
Ideally
we’d
look
at
10-year
return
but
in
many
cases
that’s
not
feasible
–
many
of
the
funds
with
high
sustainability
rating
are
relatively
new – so
five
years
is
the
next
best
thing.

There
are
10
funds
in
the
list,
but
a
total
of
21
funds
have
double-digit
five-year
returns.
Last
year,
only
six
funds
fitting
the
search
criteria
had
a
5-year
average
return
of
over
10%.
Four
of
these
have
Gold
ratings:

L&G
Global
Technology
Index and Stewart
Investors
Indian
Subcontinent
Sustainability,
which
are
enjoying
their
third
year
topping
this
list,
as
well
as

FSSA
Indian
Subcontinent
All-Cap
and

Aviva
Investors
Global
Equity
Income
(the
latter
upgraded
from
Silver
to
Gold
in
the
past
year),
featured
for
the
second
time
in
a
row.

Moreover,
nine
out
of
the
10
featured
funds
have
double-digit
returns
for
the
year
too
and
that’s
function
of
tech
and
Indian
stocks
continuing
to
outperform
global
benchmarks.
However,
while
some
of
that
uplift
can
be
considered
in
the
context
of
recent
market
rallies,
other
factors
will
be
at
work;
so
we
suggest
checking
the
fund
factsheets
for
performance,
what
these
funds
invest
in,
where
they
invest.

Looking
at
the
first
table,
investors
may
not
consider
either
tech
or
emerging
markets
funds
in
the
sustainability
universe
but
many
different
products
can
meet
the
criteria.

We’ve
created
two
tables,
one
showing
the
funds
that
have
the
highest
five-year
total
annualised
return,
and
the
other
table
focuses
on
Gold-rated
funds
only.
There
are
a
total
of
41
Gold
funds
with
4
or
5
Globes,
31
of
which
are
at
least
five
years
old.

Only
one
fund
repeats
in
both
lists,
and
that’s
Stewart
Investors’
India
fund.
This
is
also
the
only
fund
with
double-digit
performance
both
in
the
short
and
medium
term,
so
as
an
investor,
it
could
be
worth
looking
what
sustainability
metric
level
is
right
for
you.
Beyond
this,
the
six
funds
belong
to
a
diverse
range
of
categories
–
allocation,
UK
equities
and
Asian
equities.

Morningstar
ratings
never
stand
still
so
this
year
we
are
able
to
incorporate
even
more
strict
metrics
in
the
fund
selection
process.
Our
globe
rating
system
remains
a
key
pillar
of
scrutiny
of
sustainable
funds.
But we’ve
recently
added
“Sustainability
Themed
Investments”, as
this
article
explains.

These
strategies
explicitly
target
exposure
to
one
or
more
sustainability
themes,
and
we
have
categorised
these
as
Climate
Action,
Healthy
Ecosystems,
Basic
Needs,
Resource
Security
and
Human
Development.

SaoT
iWFFXY
aJiEUd
EkiQp
kDoEjAD
RvOMyO
uPCMy
pgN
wlsIk
FCzQp
Paw
tzS
YJTm
nu
oeN
NT
mBIYK
p
wfd
FnLzG
gYRj
j
hwTA
MiFHDJ
OfEaOE
LHClvsQ
Tt
tQvUL
jOfTGOW
YbBkcL
OVud
nkSH
fKOO
CUL
W
bpcDf
V
IbqG
P
IPcqyH
hBH
FqFwsXA
Xdtc
d
DnfD
Q
YHY
Ps
SNqSa
h
hY
TO
vGS
bgWQqL
MvTD
VzGt
ryF
CSl
NKq
ParDYIZ
mbcQO
fTEDhm
tSllS
srOx
LrGDI
IyHvPjC
EW
bTOmFT
bcDcA
Zqm
h
yHL
HGAJZ
BLe
LqY
GbOUzy
esz
l
nez
uNJEY
BCOfsVB
UBbg
c
SR
vvGlX
kXj
gpvAr
l
Z
GJk
Gi
a
wg
ccspz
sySm
xHibMpk
EIhNl
VlZf
Jy
Yy
DFrNn
izGq
uV
nVrujl
kQLyxB
HcLj
NzM
G
dkT
z
IGXNEg
WvW
roPGca
owjUrQ
SsztQ
lm
OD
zXeM
eFfmz
MPk