Aim: Growth by investing in an ethically screened portfolio of European equities
Minimum investment: Lump sum £500, monthly £50
Investment split: 100% in an ethically screened portfolio of European equities
Isa link: Yes
Pep transfers: Yes
Charges: Initial 4%, annual 1.5%
Commission: Initial 4%, renewal 0.5%
Tel: 0800 333353
This Oeic invests in an ethically screened portfolio of European equities.
Putting the fund into its market context, The Ethical Partnership director Jeremy Newbegin says: “There are only two European ethical funds at the moment, so another one is very welcome. The charges are reasonable, especially when considering that there is another layer of work required – in other words, ethical screening.”
He regards the literature as immaterial, as his clients rely on his advice rather than a company’s literature. “The adviser remuneration is okay – perhaps too high as far as initial commission is concerned, but presumably rebates to the client are available, so that should an adviser wish to reduce the commission taken, or charge a fee to the client, that can be implemented,” he says.
Turning to the potential drawbacks of the fund, Newbegin would have also preferred it if the fund had been an income fund rather than a growth fund because the ethical and socially responsible investment marketplace is dominated by growth funds.
He suggests Morley/NU SF European Growth and Insight Ethical European will provide the main competition for the fund.
Newbegin concludes: “Fund management groups rarely give advisers enough warning before a fund launch. Often Advisers prepare recommendations weeks before implementing business. I would prefer a pre-launch period of at least a month, during which money invested earns some sort of bonus.
“I am pleased that there is still a good emphasis on avoidance criteria as this is a motivating factor for nearly all my clients. However there is still plenty of emphasis on positive criteria.”
Suitability to market: Good
Investment strategy: Good
Adviser remuneration: Good
Overall 8 /10