Scottish Mutual is launching its own ethical fund, invested predominantly in UK equities. The unit-...
Scottish Mutual is launching its own ethical fund, invested predominantly in UK equities.
The unit-linked fund will be available through the group's pension contracts and bases its selected screening criteria on research by ethical research specialists EIRIS (The Ethical Investment Research Service).
Nick Kelly, product development actuary at Scottish Mutual, said the ethical fund was another investment option in Scottish Mutual's range of pension funds. The new fund will not alter the company's commission structure and will operate under the same regime as any other in-house fund.
The annual management charge for the fund is 1% with a bid/offer spread of 5% for most contracts. The portfolio seeks to avoid investment in companies that conduct animal testing for cosmetic products, make tobacco products or armament systems or are involved in the production of pornographic material.
The new inhouse fund brings Scottish Mutual's total to 18, ranging from unitised with profits to managed and specialist portfolios.
At the same time the company is extending its fund selection for unit-linked pension products by teaming up with Fidelity, Merrill Lynch Investment Managers, Newton and Perpetual.
The funds have been selected as they reflect a balanced attitude to risk but have distinctive manager styles, according to Kelly, who added that this was the first time Scottish Mutual had added external fund links.
He said: "The funds are appropriate for customers with a balanced attitude to risk and the charges are very competitive. We are also offering the fund to existing, as well as new, business."
The Scottish Mutual Merrill Lynch Investment Managers Managed Fund's annual charge is 1.15% while the Scottish Mutual Fidelity Managed Fund charge is 1.9%.
Charges for the Newton Managed Fund under the scheme are 1.15% and Perpetual's costs 1.45% per annum. All the arrangements have extra fees deducted from the underlying fund.
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From 8pm Friday 19 October