Friends Ivory & Sime has launched an actively-managed balanced ethical fund as part of its pooled pe...
Friends Ivory & Sime has launched an actively-managed balanced ethical fund as part of its pooled pension fund range.
The socially responsible investment (SRI) fund is being aimed at pension schemes looking to apply SRI across all their investments.
The fund has been developed with the Pensions Trust, Christian Aid and Oxfam, the latter two being initial investors in the fund, which now has £50m in assets.
The SRI process on the portfolio uses a responsible engagement overlay, the group's process of using its influence as an investor in a company to encourage businesses to improve management of key social, ethical and environmental issues.
Additionally, the portfolio will only invest in companies which operate in sectors that have a high negative impact on society and the environment if they demonstrate a commitment to improving damaging working practices.
Investments are not made in companies which derive 3% or more of their revenue from the manufacture of tobacco products, distribution or manufacture of strategic military goods or services, or ownership or operation of nuclear power stations.
Gary Mairs, managing director of retail and institutional business at Friends Ivory & Sime, said the fund was designed to help trustees meet their fiduciary responsibilities of maximising returns while using an appropriate investment approach.
The fund uses the Caps Pooled fund survey as its benchmark and aims to outperform the Mixed (ex-property) fund median by 1% a year over rolling three-year periods.
Investments in the portfolio will include range of assets such as UK and international equities, fixed interest and cash.
Equities are to be selected using the same criteria Friends Ivory & Sime use for its Mixed fund. The fund manager is looking for stocks which show strong earnings per share growth in companies with an improving competitive position and good business prospects that have shown consistent profits growth.
Barry Sanjana, chief investment officer at the group, will lead the investment team on the fund and will take overall responsibility for the fund's performance.
The standard charge on the fund is 0.5% a year but the group is offering special terms to any pension schemes investing before 30 June of 0.35%.
Exit fees and conversions
Initial FOC of 0.6%
Former PFS president
Last commission convened in 2002