Axa Sun Life is to join the increasing number of life offices in the ethical market with the launch of its first fund in April.
The ethical unit trust will be available to IFAs through Sun Life and direct to investors through Axa Life. Press relations manager Peter Webb says: "We have not had an ethical fund in the past but we believe there is a growing market for it.
"It will be available as a unit trust and will be targeted particularly at private investors. But we also hope to attract institutional investors who might be interested in using an ethical fund as part of their pensions or life insurance portfolio."
Funds held in ethical unit and investment trusts have more than doubled to £1.46bn in the UK over the last two years. Axa Sun Life expects to use the Ethical Investment Research Service to help decide where funds should be invested.