Columbia Threadneedle launches UK ethical fund


Columbia Threadneedle Investments has launched a UK ethical fund.

The launch of the Threadneedle Ethical UK Equity fund follows the launch of the Threadneedle UK Social Bond fund, which came to market in early 2014.

Run by UK equities manager Matt Evans, the Ethical UK Equity fund targets a total return from investing in stocks screened for ethical acceptability.

The fund avoids companies associated with alcohol, tobacco and weapons and looks for companies concerned with environmental, social and corporate governance issues, as well as those providing sustainability solutions.

Evans is supported by a four-strong responsible investment team that will assist with the ESG analysis of stocks.

Evans says: “It is our belief that companies that operate in an ethical way are more likely to generate sustainable returns over time. There is also a huge investment opportunity in those companies who can deliver solutions to the world’s sustainability challenges.”

The Ethical UK Equity fund has been seeded with £22.7m rolled over from the Teachers Sovereign Ethical fund, following the transfer of the Teachers Assurance unit trust business to Columbia Threadneedle in Q4 2015.