F&C has continued its green investment stance with the launch of a new ethical bond fund under the management of Rebecca Seabrook.
Structured as a Ucits III Oeic, the fund will have £40m of seeded assets at launch and will combine the capabilities of both its fixed interest and governance and sustainable investment teams.
It will operate on the same process as the firm’s Stewardship range, with securities screened for both positive and negative criteria by an independent policy committee. This will mean the fund will look to actively avoid sectors including alcohol production, gambling and hardcore pornography.
The fund will be positioned in the IMA corporate bond sector and be benchmarked against the Sterling iBoxx non-gilts index of UK corporate bonds. The firm expects 59 per cent of the investment universe to remain available after ethical screening.
Seabrook says: “This fund expects companies to meet high sustainability standards and has strict dark green ethical criteria but it is important to note that, in terms of investment performance, we are targeting a return against a mainstream benchmark.”
The retail share class will have a 5 per cent initial charge with an annual charge of 1 per cent. Minimum investment is set at £1,000 lump sum or £50 a month.