SVM Asset Management is launching the all Europe Socially Responsible investment (SRI) fund on October 31.
The fund will be run by SVM Continental Europe manager Hugh Cuthbert and SVM UK opportunities manager Neil Veitch and will adopt a ‘positive screening’ approach to investing by engaging with companies rather than ‘negative screening’ which automatically excludes many sectors.
The group says the fund managers will look to invest in companies that demonstrate a willingness to develop and improve on environmental, social, ethical and governance issues and the only sectors that will not be considered are armaments, tobacco and pornography.
The 35-45 stock fund will be benchmarked against the FTSE World Europe index rather than the SRI index because SVM believes there are enough companies that will meet the SRI criteria and be able to generate strong investor returns.
Veitch and Cuthbert will be supported by SRI analyst Craig Jeruzal.
SVM head of client sales Mark Noble says: “We believe that there is currently a lack of pan European choice to investors looking for an SRI fund.”
Hugh Cuthbert says: “By investing in companies with less well developed sustainable policies and progressing them up the ladder , we believe our clients’ assets will be put to work most effectively.”