View more on these topics

Ethical standards will boost value

Adopting the standards set by the new ethical indices FTSE4Good will improve a company&#39s exposure to risk and preserve shareholder value, according to industry experts.

The claim comes as FTSE4Good meets on Friday to finalise the qualification and exclusion criteria for its socially respon- sible investment indices ahead of their expected launch this summer.

FTSE4Good intends to start with attainable tar-gets for acceptance to the indices but will evolve by tightening the criteria year on year.

Opinions across the industry are divided as to whether SRI is a benefit or hindrance to economic performance.

Marsh Risk Consulting managing consultant David Abrahams believes companies should integrate socially responsible considerations into their standard procedures if they want to manage brand risk properly, citing blue-chip companies which have seen share value fall after consumer campaigns.

Abrahams says: “A company&#39s reputation may be at risk if its leadership is unprepared to deal with a changing set of non-financial expectations of its investors and other stakeholders.”

Friends Ivory & Sime director of governance and SRI Craig Mackenzie says: “As an institutional investor, we are increasingly calling for companies to manage corporate social responsibility issues as part of their governance and risk management systems.”

But Michael Philips partner Michael Both says: “If you spend money being green you will lose market share to those who don&#39t. It is a very dangerous game to play.”


Investec Asset Management – Pan European Fund

Monday, 11 June 2001.Type: Offshore Oeic.Aim: Growth by investing in 30-40 European stocks.Minimum investment: £2,000, Euros 3,000.Place of registration: Dublin.Investment split: 100 per cent in 30-40 European stocks.Isa link: Yes.Charges: Initial 5 per cent, annual 1.5 per cent.Commission: Initial 3 per cent, renewal subject to negotiation.Tel: 020 7597 1900.

Another fin mess by FSA?

The FSA is considering forcing providers to use website addresses with .fin suffixes in a bid for consumer protection. The scheme would see all regulated firms using .fin addresses, with the aim of assuring users they were dealing with an FSA-regulated company. The plan is raised in a discussion paper this week which claims it […]

Outside Edge by Robert Reid

The significance of the FSA review into with-profits cannot be overstated. In the past, disparities associated with the way that with-profits funds are managed have been masked by high rates of return. But in the current lower-return environment, the flaws have become apparent. The review is considering four specific areas where the existing framework is […]

Lore of averages

Could you give me some advice over the level of pension saving I should be making and what life cover I should take out? “Mr Average” client sometimes asks what is the average pension contribution and level of life cover they should put in place. The usual answer we give is that there is no […]

Oil industry: only the fittest will survive

The actions of OPEC have forced the oil supply to fall and producers to cut costs and rationalise, says Richard Hulf In an interview with journalist Alexis Xydias, Richard Hulf, manager of the Artemis Global Energy Fund, explains the impact of the fall in the oil price on energy companies. Alexis also quizzes Richard on […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm