From 218 funds, the FE Research team whittled down to 25 funds by using the same stringent performance requirements that funds are put through in order to make it on to the FE Invest Recommended list. After this, qualitative assessment was carried out to determine whether the manager met the fund’s specific objectives.

Three Henderson funds made the list – Global Care, Global Care UK Income and Global Care Managed, while Alliance saw two of its funds – Sustainable Future Absolute Growth and Sustainable Future Managed funds making the list.

Changing consumer sentiment on issues such as global warming and corporate ethicality, combined with an increasing commercial focus on socially responsible conduct, has fueled the growth of ethical investment funds since the turn of the century.

However, the ethical investment sector remains niche (representing a mere 1.2 per cent of the UK funds market overall), and many ostensibly ethical funds could be unworthy of the name.

Mika-John Southworth, director at FE Trustnet, said: “The rise in interest in ethical funds is not surprising. People care about where their money is being invested and indeed recent research suggests that 75% of people would be unhappy knowing that their money is invested in unethical funds. The FE Ethical Funds List allows investors to make sound investment decisions that are good for their finances, wider society and good for the planet.”

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FE Research recommended Ethical funds list: