View more on these topics

RLAM explores ethical equities

Royal London Asset Management has introduced the RLAM UK ethical equity fund to complement its existing ethical bond fund.

The new fund will aim for growth and income by investing in 40-60 equities of companies listed mainly in the UK. It targets returns of 2-3 per cent a year above its benchmark, the FTSE All-Share Index.

The Fund will be managed by Bradley Mitchell, who has more than 20 years’ experience of UK equities. He has managed the Scottish Life ethical equity pension fund since March 2004 and also runs the Royal London UK growth fund.

Ethical screening for the new fund will provided by independent ethical research company EIRIS. The screening will avoid companies that generate more than 10 per cent of their turnover from alcohol, armaments, gambling, tobacco and pornography.

Companies that impact on the environment or operate in countries where human rights is a concern will be ineligible if there are no adequate policies in place to address these issues. Firms that use or provide animal testing services will also be avoided.

A scoring system will be used to identify the best companies from those that are deemed eligible. From this universe, the manager will select undervalued companies that have fallen out of favour, but where a catalyst for change should lead the market to upgrade its share price. The portfolio will reflect the manager’s top down view, with the portfolio having a cyclical or defensive bias depending on market conditions.

RLAM underlines the need for ethical funds that can deliver returns and says the former does not have to come at the expense of the latter. The negative screening will reduce the number of stocks available to the fund manager, which could impact on performance. However, some advisers will feel Mitchell’s stockpicking from what is available, rather than the screening process, will ultimately be responsible for performance.

Recommended

The RDR fitness plan

I had an interesting chat with an adviser last week and something he said struck me. As we discussed his retail distribution business transition plan, he pointed out that those who delay in implementing their RDR vision only have 20 monthly pay days until the regulation takes effect on January 1, 2013. Thinking of your […]

BCC cuts UK growth forecast to 1.3 per cent

The British Chambers of Commerce has lowered its forecast for economic growth in the UK in 2011 and 2012. In its latest Quarterly Economic Forecast, the group asserts that GDP will grow by just 1.3 per cent in 2011 – below its earlier prediction of 1.4 per cent and under the government’s 1.7 per cent […]

West Brom reports £13.1m pre-tax loss

West Brom Building Society has reported a £13.1m pre-tax loss for the year ending March 31, an improvement on the £18.5m loss over the same period last year. The group increased its core tier one capital ratio from 11.8 per cent to 12.8 per cent over the period. It attracted 29,500 new savers, with total […]

Pension - thumbnail

David Cameron appoints former adviser to Tony Blair as new pensions minister

Following a cabinet reshuffle in light of last week’s general election, David Cameron has announced that Ros Altmann will be replacing Steve Webb as pensions minister. As the industry works with one of the largest reforms to the sector in almost a century, the former adviser to Tony Blair has been tasked with ensuring that the pensions revolution does not stray off track.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com