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F&C ethical fund A top performer in last five years

F&C Asset Management claims that the latest White List report from Principal Investment Management shows that ethical funds do not always have to be risky.

The inclusion of F&C’s stewardship income fund on the annual list of funds shows it is one of the bestperforming UK equity income funds over the last five years.

The fund was the least volatile of the 12 funds identified by the report as being consistent performers.

It scored 3.1 for volatility, with the average fund scoring 4.2 and the highest funds reaching 4.8.

The fund is managed by Ted Scott, who focuses attention on smaller and medium-sized stocks. He does not maintain an index weighting.

F&C director of communications Jason Hollands says: “The reality is that many UK equity managers hold all the big stocks for no other reason than they are worried about the extent to which their performance might differ to the rest of the market.

“We have often seen comments to the effect that ethical funds are likely to be higher risk because they tend to have a bias towards smaller companies or because they have a higher tracking error from the index.”

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Neil Jones is technical support manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. The residential nil-rate band (RNRB) was first announced in […]

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