ESG Fund Factsheet

For adviser use only

abrdn UK Ethical Equity

Classification: Sustainable
Management style: Active

Introduction

The abrdn UK Ethical Equity fund aims to generate growth over the long term (5 years or more) by investing in UK equities (company shares) which meet the ethical criteria set out in the investment manager’s Ethical Investment Policy.

Name Launch Date IA Sector Portfolio OCF* Fund Size (m)
abrdn UK Ethical Equity 17/05/2012 UK All Companies 0.88% £214.1*

About Abrdn

Abrdn is a global investor.  By harnessing the power of investment they are dedicated to creating more opportunity for clients, and more positive impact for the world around us.

They use their worldwide investment experience and local market resources to seek out investment opportunity globally.  Through active investment, stewardship and innovation, they aim to deliver the most sustainable and future-fit investment solutions to help every client achieve more with their capital.

ESG Process

While the funds team recognise the personal nature of everyone’s ethics, they aim to ensure that the funds are reflective of the wider views of those who invest in them. They regularly review the criteria, both positive and negative, through customer surveys and consultations to ensure they remain relevant and industry leading. This approach is overseen by the Ethical Funds Advisory Group, consisting of both independent external members and key members of staff.

Positive criteria

Using positive criteria, they allocate the majority of the fund to companies or issuers that are involved in activities that benefit society and the environment. They use the UN Global Compact (www.unglobalcompact.org) to define the four areas where they seek to invest in companies with positive business practices and services.

The four areas are;

  • Environment
  • Human Rights & Community
  • Employment
  • Anti-bribery & Corruption

Exclusion Policies

The fund seeks to avoid companies from the following criteria:

Tobacco products Production of fur
Gambling Weapons
Alcohol Production Animal Testing or husbandry
Poor environmental records Poor employment records
Poor human rights records Marketing breast milk substitutes
Nuclear power Poor business practices
Pornography Companies in violation of the UN’s Global Compact.

The sustainable investment approach document can be consulted for a more detailed breakdown of what these exclusions entail.

Investment Performance

The fund aims to achieve a return of the FTSE All-Share index, plus 2% over 5 year rolling periods (before charges). The fund has failed to achieve this target over any time period over the past 5 years, having achieved a gross (before charges) loss of -1.96% over 5 years, with the performance target being 4.17%. (Source abrdn UK Ethical Equity Fund monthly factsheet, 30th September 2022).

Past performance is not a reliable indicator of future performance.

Platform availability

The abrdn UK Ethical Equity fund is available on the following platforms:

Abrdn Wrap M&G Wealth
Abrdn Elevate Fidelity
Advance by Embark Aegon
Aviva Interactive Investor
James Hay Novia
Nucleus Quilter
Transact

Supporting documents

Tenet Opinion

The abrdn UK Ethical Equity fund has a long track record and a very established fund management team, which is less common in the sustainable investing space.

It applies a comprehensive range of negative screens and may potential be suitable for clients who wish to exclude a range of different areas from their investment portfolios on ethical grounds.

The fund also has four areas of focus in terms of positive screening which would make it potentially suitable for clients who have a personal interest in these areas and would like their investment portfolio to be more heavily weighted towards them.

Information approved for Professional Adviser use only and should not be relied upon by private investors (this is not for Retail Clients).