View more on these topics

Green is the colour for Skandia

Skandia Investment Management has established a multi-manager ethical fund that combines manager of managers with funds of funds approaches.

The fund will initially hold three retail ethical funds from Aegon, Norwich Union and F&C, plus a segregated mandate run by JPMorgan Asset Management. Skandia designed the fund to provide a well-diversified alternative to single manager ethical funds which can be volatile. The ethical criteria will be under constant review, screening out companies involved in animal testing, alcohol, tobacco, pornography, those which harm the environment and those which have poor human rights records.

The segregated mandate, which makes up 76 per cent of the portfolio, will contain 60-70 stocks. These will be selected by fund manager Howard Williams using an ethical framework which is applied to the best ideas portfolio provided by a team of global sector analysts.

The analysts favour companies that show momentum and which have low valuations which do not reflect their real potential. The mandate aims to be more balanced than ethical portfolios which have a slant towards smaller companies and growth stocks. It will cut across both value and growth investment styles.

The Aegon ethical fund will have an 8 per cent weighting and invests in 80-100 stocks chosen by fund manager Audrey Ryan. Ryans investment style involves looking for themes and valuation. Ethical screening will be provided by the Ethical Investment Research Service.

Norwich UK ethical fund, run by Morley, takes a top-down approach to a portfolio of 40-60 stocks. Companies are rated on their ability to improve society and the fund manager will identify ethical themes which leads to favoured sectors and specific stocks categorised as winners or losers.

F&C stewardship growth fund focuses n 100-120 small to mid caps. It has a growth bias and will have a particular emphasis on IT, media and healthcare stocks.

On the plus side, this fund brings more choice into the ethical investment market and allows fund of funds and manager of manager approaches to complement each other, with Skandia retaining control over the bulk of the portfolio while still accessing existing funds which are performing well. It may be useful for advisers who are not experts in the ethical market but who have clients with ethical concerns.

However, a multi-manager ethical fund is not unique Credit Suisse Asset Management has one and Skandias darker green ethical bias may mean there are few funds to choose from if the existing fund need to be replaced.



NU updates PMI

Norwich Union is updating its international private medical insurance product range a year after its launch. Global care and global care plus will now express benefits and premiums in pounds sterling, euros and US dollars. The five regions the product uses have been expanded to inc- lude countries previously in an area needing a higher […]

HBoS Financial Services appoints new marketing and distribution director

HBoS Financial Services has appointed Paul McNamara as marketing and distribution director.He will be reporting to managing director John Spellman.McNamara has over 20 years experience in financial services. He joins HBoS from Axa UK where he was group strategy director and he previously held senior roles with McKinsey & Company and the Bank of Ireland […]

Scandinavian shock as banks drive out IFAs

UK IFAs should beware of the fate of their Scandinavian counterparts who have been wiped out after pressure from banks outlawed commission, warns Aifa chief Chris Cummings. The decision by the FSA’s Swedish and Norwegian counterparts follows heavy lobbying from the region’s powerful banking sector to force independent advisers to charge fees only and strip […]

Hall makes As while the sun shines

Very few fund managers have been awarded an AAA rating by Standard & Poor’s, Citywire and Forsyth-OBSR. Mark Hall achieved this recently when S&P upgraded him from AA to AAA and named him the top FTSE All-Share fund manager over the past year.


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