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Kames Ethical Equity Fund Class B - Accumulation (GBP)

Sell:239.13p Buy:239.13p Change: 1.59p (0.67%)
Prices as at 6 December 2019
Sell:239.13p
Buy:239.13p
Change: 1.59p (0.67%)
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account
Prices as at 6 December 2019
Sell:239.13p
Buy:239.13p
Change: 1.59p (0.67%)
Prices as at 6 December 2019
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund features on our Wealth 50 list of what we believe are the best funds in each sector.

Investing ethically often involves avoiding certain companies or sectors. These constraints mean striking a balance between investing ethically and delivering strong performance is no easy task. We think Audrey Ryan is one of few fund managers who have handled the constraints of an ethical fund well over the long run.

She's been at the helm of the Kames Ethical Equity Fund for more than two decades and is supported by a stable and well-resourced team at Kames. We think this fund could deliver strong returns for long-term investors.

Please note this fund invests in Hargreaves Lansdown plc.

Our view on the sector

Ethical investing has gained more traction in recent years as social, ethical and governance issues have fallen onto the radar of more investors. The difficulty is there are no strict rules for what constitutes an ethical investment. Different funds exclude or include companies based on different criteria. Some will exclude all companies from particular industries, such as those involved with tobacco, weapons, pornography etc. Others will invest in industries some might perceive to be unethical, but where the companies are doing their best to operate in a responsible manner. Investors need to check each fund's policy carefully to ensure it meets their ethical objectives.

Performance Analysis

69% of the UK's largest companies are excluded from the fund's investment universe on ethical grounds. The fund therefore has a long-term bias towards higher-risk small and medium-sized companies. Our analysis suggests this has helped the fund perform better than the UK stock market over the long term. It can cause more volatility though.

The manager invested a large chunk of the fund in cash during the financial crisis and this offered some shelter from the worst of the market falls. She was slow to reinvest this cash though and the fund subsequently lagged the broader UK stock market. More recently, the focus on small and medium-sized companies, which tend to be more reliant on the UK economy, hurt performance in the wake of Britain's vote to leave the EU. The overall record remains strong though and we think the manager will do a good job over the long term although of course there are no guarantees.

Investment Philosophy

The Kames team look at the effects a company's activities can have on the environment and society and use a strict screening process to find suitable companies. Audrey Ryan then selects the ones with the best long-term prospects, taking into account her views on the UK economy.

Process and Portfolio Construction

This fund uses a 'negative screening' approach. That means it won't invest in any companies involved in any activities deemed unethical. From tobacco and alcohol producers to munitions manufacturers and companies that use animal testing.

Below is a more detailed list of the companies that the fund wont invest in.

Animal welfare - companies that provide animal testing services, make or sell animal-tested products, are involved in intensive farming, operate abattoirs or slaughterhouses or sell meat, poultry, fish or dairy

Military - companies that make armaments, nuclear weapons or similar strategic products

Nuclear power - companies that provide important services to, or own or operate, nuclear facilities

Environment - companies that excessively damage the environment, in breach of internationally recognised conventions on biodiversity or not tackling climate change

Political donations - companies that have made political donations of more than £25,000 in the last year

Genetic engineering - Companies that have patented genes

Gambling - companies with investments in betting shops, casinos or amusement arcades which account for more than 10% of their total business

Alcohol - companies where more than 10% of their total business involves brewing, distillation or sale of alcohol

Tobacco - companies where more than 10% of their business involves growing, processing or selling tobacco

Pornography - companies that provide adult entertainment services

Debt - banks with exposure to large amounts of corporate or Third World debt

Oppressive regimes - companies operating in countries with poor human rights records or with no established policies on human rights issues

question mark Manager Track Record Based on HL Quantitative Research

  • Kames Ethical Equity A Acc
  • FTSE All-Share TR
FROM: TO:


Fund Track Record

06/12/14 to 06/12/15 06/12/15 to 06/12/16 06/12/16 to 06/12/17 06/12/17 to 06/12/18 06/12/18 to 06/12/19
Annual return 11.58% -3.17% 14.96% -14.02% 23.24%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Fund Management Group Comment

Kames Capital, formerly Aegon Asset Management, is a specialist investment management company managing fixed income, equity, property and multi-asset funds for investors in the UK, Europe and Asia. It is a wholly-owned subsidiary of Aegon NV, one of the world's largest financial services groups.

Kames Capital combine their fund managers' talents with a proven investment process which is not constrained by any single investment style.

Information about the fund

Fund manager biography

manager photo
Manager Name: Audrey Ryan
Manager start date: 1 January 1999
Manager located in: Edinburgh

Audrey Ryan is an investment manager in the UK Equities team with responsibility for managing several funds, including the Kames Ethical Equity Fund and Kames UK Opportunities Fund. In addition, Audrey has analysis duties for the travel & leisure sector, and is a small-cap specialist. She joined us in 1997 from General Accident where she was a UK small companies portfolio manager. Audrey studied Accounting at Napier University, is a qualified chartered accountant and has an MSc in Investment Analysis.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account