AJ Bell increases ESG offering with a sustainable fund of ETFs

ESG and sustainability investing have become ever more popular throughout 2020 no doubt helped by the outperformance of stocks and funds which have high ESG scores.

Investment platform AJ Bell has not been deaf to the clamour and has announced the launched a sustainable fund of ETFs, the Responsible Growth fund.

What is the AJ Bell sustainable fund of ETFs?

The Fund will invest in a series of ETFs that avoid industries such as alcohol and tobacco the so-called sin stocks, and which focus instead on the core values of ESG the environment, social investment and good corporate governance.

The fund aims to create a diversified investment portfolio that has a better than average outcome for both people and the planet.

AJ Bells CIO, Kevin Doran  was quoted as saying

“Responsible investing is something that clients are increasingly asking advisers about and this is only going to increase over the coming years.”

And that

“Our new fund offers advisers a simple and transparent way to add a responsible dimension to their client’s portfolios without sacrificing the potential for positive returns.”

Why is ethical investing so popular?

The ESG theme is now a force to be reckoned with research from Morningstar, published over the summer showing that more US$1.0 trillion was now invested in Funds with an ESG and that more than $61.0 billion had flowed into ESG funds from European investors during the second quarter of this year.

Industry expectations that this only the start and that more than  50% of the asset under management in Europe could be in ESG oriented funds by 2025 and the growth rates for flows into ESG could exceed 28.0.% according to a report from accountants PWC

Data from the UK’s Investment Association bears that out, with ESG and sustainable funds were growing at a rate of 89% in terms of lows and performance during June 2020 when compared to comparable periods in 2019.

How much will the AJ Bell sustainable ETF cost?

AJ Bell will charge an annual management fee of 0.15% with a capped ongoing charges fee of 1.00% charges that it hopes to be able to reduce as the fund grows and achieves economies of scale. Those cost savings would be passed on to investors in the fund.

Where to buy the AJ Bell sustainable ETF

Investors can subscribe to the fund via offer period that started on November 2nd and which runs for three weeks units are being at £1.00 and the fund will commence trading on November 23rd. The Responsible Growth fund will be available for inclusion in  SIPPs and ISAs’ as well as investment accounts accessed through the AJ Bell Investcentre platform.


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