Skandia is restructuring its ethical portfolio following changes to its
ethical investment approach.
The move means that funds included in the portfolio, which is available to
life and pension clients, will no longer be selected from a pre-screened
Stocks will now be selected by the fund manager from a broad universe and
will only be evaluated for their ethical criteria at a later date. Shares
that do not meet these cri-teria will be dropped from the portfolio.
Skandia has chosen fund manager JP Morgan Fleming to run the equity
portion of the portfolio while ethical screening will be carried out by
Ethical and Environmental Screening Services.
The portfolio's multi-manager unit trust basket will now be managed by
Skandia's investment research committee. Jupiter had been managing this
part of the portfolio but the move will put more focus on monitoring the
external fund managers.
A new fixed-interest layer will be added to the fund and run by Merrill
Lynch Investment Management. The addition of fixed-interest investments is
designed to give a layer of underlying stability to the portfolio.
The portfolio will have 75 per cent devoted to direct equities, with the
unit trust basket comprising 20 per cent, the new gilts layer 3 per cent
and cash 2 per cent.
Skandia investment brand manager Phil Morse says: “Ethical managers tend
to work from prescribed ethical buy lists. JP Morgan Fleming will not be
doing this. By taking a more mainstream approach, our fund can now take
advantage of many other stocks which would not necessarily be included on
these buy lists.”