An IFA specialising in socially responsible investment (SRI) is launching an ethical fund of funds in the New Year.
Jeremy Newbegin, (pictured) a director at The Ethical Partnership, set up the Eden SRI Balanced Fund in the summer of 2010 with the help of Sanlam.
The fund is currently only available through Sanlam's product range but in January it is being converted into an open ended investment company (OEIC) to enable access from most fund platforms.
Way will administer the Eden SRI Balanced OEIC and discretionary management will be by Paul Warner, managing director of Minerva Fund Managers. The fund will be promoted by SRI Investment Services.
The fund will have both accumulation and income units and a target yield of 3% per year.It will invest in a mixture of corporate bonds and equity funds.
There will be no stated avoidance criteria for the fund but it will choose funds from the FE Green Index.
Newbegin said: "By having no stated avoidance criteria the fund will have the widest fund choice possible which will enhance the prospects of good and consistent fund performance."
Under Sanlam's administration the fund has grown by 14.79% since inception in August 2010.
The fund has a total expense ratio (TER) of 1.39%. The TER will rise when converted to an OEIC but will be kept under 2%, through the purchasing of institutional units where possible, and keeping expenses down to the minimum, Newbegin said.
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