The Ethical Partnership has established a balanced unit-linked socially responsible fund of funds for Merchant Investors’ product range and will add an adventurous portfolio later in the year.
The MI Eden SRI balanced fund, which forms part of Merchant Investors’ Zest fund range, comprises at least 12 underlying funds and is managed on a discretionary basis by Minerva Fund Managers. The Ethical Partnership already works with Minerva for a discretionary fund management service on the Avalon platform but wanted to link the balanced fund to a wider range of wrapper products than offered by Avalon.
The Ethical Partnership has a direct influence on fund choice within Eden SRI balanced, as the firm has more experience in ethical and SRI funds than Minerva. Minerva is responsible for the asset allocation and making sure the risk profile is appropriate for a balanced fund.
The Ethical Partnership will monitor the way that Minerva runs the fund to make sure performance is achieved and that it is investing in suitable funds.
The Ethical Partnership director Jeremy Newbegin says the adventurous fund of funds will differ from the balanced fund in its ability to hold direct equities but it was important to launch the balanced fund first.
He says: “Most investors who go through a risk questionnaire would end up being balanced. Balanced was the logical route as it would reach out to more people.”
MI Eden SRI balanced has an annual charge of 0.25 per cent and a total expense ratio of 1.6 per cent.