Scottish Mutual has entered the ethical market for the first time.
The Scottish Mutual ethical fund is a unit-linked fund that is accessible via a pension. It is aimed at investors who are looking for more control over what they invest in and who want an ethical approach to investing.
The fund will invest in UK companies that have a history of good practice in humanitarian issues, animal husbandry, employment conditions, environmental conditions and community involvement. Choosing the companies will be done by referring to a research database from the Ethical Investment Research Service.
Scottish Mutual Ethical joins the small group of 19 companies that are in the UK ethical funds sector. It has an annual management charge of one per cent and an initial charge of five per cent.
According to Standard & Poor's the best performing fund in this sector on October 1, 2000 is the Family charities ethical fund, which comes in the top five over one, two, three, five and ten years. It also has an annual management charge of one per cent and an initial charge of five per cent.