7IM has reduced the annual management charges on its Sustainable Balance fund as it seeks to attract more investors to its sustainable offering.
The fund house announced it has cut the fee from 1% to 0.75% as it sought to "broaden the appeal of its proposition for investors interested in responsible investments".
Launched 13 years ago, the funds have performed well over a three- and five-year period, returning 14.1% and 32.7%, versus a sector average of 6.4% and 28.3%, respectively.
There is mounting evidence to suggest that stocks with high ESG scores are more resilient than those which score poorly"
It also looks to favour firms which score positively from an ethical standpoint.
Camilla Ritchie, senior investment manager at 7IM, said: "As firms focus ever more closely on implementing guidelines on green and responsible practices, and with the increasing awareness investors have of the impact their money can have on companies and the environment, sustainability is going to be a major trend affecting investment returns in the long term.
"There is mounting evidence to suggest that stocks with high ESG scores are more resilient than those which score poorly. This goes part way to explaining why funds like the 7IM Sustainable Balance fund has delivered better returns than the industry average."
The group added that there is mounting evidence to suggest that stocks with higher ESG ratings will be more resilient than those who score poorly.
Verona Kenny, managing director of intermediary, added: "We have seen an increase in demand from investors and advisers looking to place money into these kinds of funds, and we are delighted to be in a position to offer one of the longest-running and top-performing sustainable strategies to investors at this new, lower cost."
Recent data from Morningstar showed global assets in sustainable funds hit £930bn in the third quarter of 2020, a record high, after investors pumped £62bn into such funds in the three months to September.
Fund houses commit to cut emissions by 2050