Close Fund Management is striking while the iron is hot by introducing the first fund to track the forthcoming FTSE4Good UK index.
The fund is an open ended investment company (Oeic) that will track the index, and is aimed at investors who want to place their money in a socially responsible area of the market. The FTSE4Good UK index itself will be introduced by June, 2001. However Close Fund Management has announced that investors will be able to register for the Oeic now.
FTSE4Good will invest in the top 100 socially responsible companies in the UK, as identified by specialist researchers the Ethical Investment Research Service. These will include many of the companies in the main FTSE 100 index that have good records on the environment, human rights and social issues. It will not invest in companies that are involved in the tobacco or arms industries.
Up to 40 per cent of the annual management charge will be donated to the United Nations childrens fund (UNICEF).
According to Standard & Poors the Close UK escalator fund is ranked 3 out of 12 funds, based on £1,000 invested on a bid to bid basis with net income reinvested over three years to March 5, 2001.