F&C and Kames Capital have warned against creating a separate IMA sector for sustainable and responsible investment funds.
Advisers and SRI providers have complained that the funds are not very visible in the IMA sectors and advisers cannot easily compare SRI funds’ strategies on platforms.
But F&C director of governance and sustainable investment Alexis Krajeski warns that investors who are not specifically looking for SRI funds may not be aware of them if they are in a separate sector.
She says: “SRI funds should be compared with mainstream funds so that investors can compare their performance.”
Kames Capital head of corporate governance and SRI Ryan Smith says: “We do look at how our peers are doing but it is difficult to compare them because different funds have different screening criteria.”
Holden & Partners managing partner Mark Hoskin says SRI funds should remain in existing IMA sectors but there should be sub-sectors that identify the funds. He says: “For example, the global growth sector could include a sub-sector for SRI funds, which could then be broken down to highlight underlying themes such as water.”