Aberdeen multi-manager fund manager Scott Spencer has called for the Investment Management Association to form a new sector for socially responsible funds.
He says there are around 67 funds with some type of ethical remit, according to Lipper Hindsight, so the interest in the market warrants a sector and would stop funds being disadvantaged by being spread across a number of IMA sectors.
He says a number of the funds should not be placed in sectors with funds that are able to invest in areas such as of mining and oil. He says: “Launching a socially responsible investment sector would give these funds a bigger profile and would allow investors to see which of these funds are doing well against their peers. Our fund currently sits in the specialist sector, meaning it has to compete with the likes of Russia and Latin America.”
Skerritt Consultants head of investments Andy Merricks says: “There is a conundrum because SRI funds should be identified somewhere but they all do different things so you may end up with a scenario for some funds that is not too different from their current situation.”