GLG, the outsourced manager of Virgin Money’s new climate change fund, has responded to adviser criticism of the product by claiming it is a progressive step in the market.
Advisers have questioned the fund’s green credentials and the 20 per cent performance fee for beating bank base rate.
Fund manager Ben Funnell says the fund focuses on all companies looking at making environmental change rather than just highly volatile providers of renewable energy and clean technology solutions.
Funnell says: “We are here to preserve capital and do not want to offer a performance fee for something that will ultimately lose investors money.”
Virgin says the fund is ideal for someone who wants a position in European equities and environmental benefit with no pick-up in volatility.