Ethical Performance
inside intelligence for responsible business

SRI Column

Former FT mandate,Roger Aitken, analyst, interprets the Fundwatch data:

Ethical funds across five sectors analysed by Morningstar in the latest one-year period to 30 April 2013 posted reasonably healthy peer group average returns ranging between +10.97% for European Funds to +18.68% across UK Individual Pensions. This compares with the three-year performance ranging from +15.02% to +27.92% and +13.59% to +33.37% over five years.

The overall best-performing fund on the latest one-year view was Robecco New World Financial Eqs D, a £140.31m fund managed by Robecco Luxembourg SA, which posted a robust +35.68% cumulative return. This UK Investment Fund pipped CF Canlife Japanese Growth (+32.42%), a £46.20m European open-ended (OE) Japanese large-cap equity fund.

Bottom of this sector’s rankings was SUNARES, a €16.23m European OE global flex-cap equity fund managed by HSBC Trinkhaus Investment Managers SA, which lagged with a -30.79% performance (-34.22% over three years; +26.94% over five).

In the US Mutual sector, Domini International Social Equity Investment, a $191.77m US OE Foreign Large Value fund, took top spoils from the $49.86m US-blended Great-West Ariel Mid Cap Value fund, with a +27.41% return over the past one-year (+32.77% over three years) versus the one-year +11.95% sector peer average. Thrivent Natural Resources ‘A’ fund ranked lowest here with -2.01% over one year. But over five-years Domini’s -2.92% showing ranks it 159th out of 201 funds.

Elsewhere, KLP AksjeAsia Indeks II, a €87.63m European OE Asia-Pacific equity fund managed by Norway’s KLP Fondsforvaltning AS, took top honours in the European Fund sector (totalling 1,112 funds). KLP’s +33.71% performance over the latest one year is however in stark contrast to its 643rd ranking (-4.64% return) over 5 years. SUNARES ranked bottom of the European Fund sector by posting a -33.41% one-year result.

The £3.1m Sterling/AXA Framlington Health Life fund managed by AXA Investment Managers UK, came top of the pile across UK Insurance funds sector with a current one-year return of +25.69% - repeating a top rank with a +84.88% return over five years. L&G/Life Neptune Green Planet fund was the worst sector performer with a -12.65% performance over one year (-40.13% over last five).

Among UK Individual Pension funds the £1.95m FL/AXA Framlington Health AP specialist life fund performed consistently across 1-, 3- and 5-year periods - ranking first, second and first, respectively. The latest 12-month gain was +28.13% but a stellar +103.56% over five years.

Note:The sector with lowest peer group average return over 1-, 3- and 5-year periods was consistently the European Funds sector. 

Global | SRI


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