Isis, the retail arm of Friends Ivory & Sime, has designed an Oeic that invests in companies around the world in the environmental technology and services sectors.
The Isis ecotech fund will contain between 40 and 60 stocks from a universe of 321 companies of all sizes. However, it is expected that companies in the early stage of development will feature heavily. The geographical split of the fund will be 40 per cent in North America and the same amount in Europe. The remaining 20 per cent will be spread across the rest of the world.
The fund will take advantage of opportunities created by environmental regulation, technological developments and greater concern for the environment. Stocks will be selected within certain themes such as renewable and alternative energy, the recycling of waste and water management. The fund will also draw upon research from Friends Ivory & Simes socially responsible investment department.
Fund managers Mark Thompson and Rob Pemberton will look for companies that have good quality management teams and a competitive marketing edge over rival companies. Thompsons background is in corporate finance within the ecological technology sector and Pemberton has been with Friends Ivory & Sime for 18 years.
The fund is likely to be of interest to sophisticated investors with an understanding of environmental issues. Its focus on technology makes it a more specialist fund than socially responsible funds with a wider remit. However, investing in a narrow range of companies like this has higher risks.
According to Standard & Poors, Isis UK smaller markets is ranked three out of 75 funds based on £1,000 invested on a bid-to-bid basis with net income reinvested over one month to March 8, 2002. There is no one-year or three-year past performance for Isis funds, as it is a recent addition to Friends Ivory & Sime.