Money News
Stewardship, the range of ethical investment funds, is to allow selected financial services institutions, including some major insurers and banks, into its universe of eligible investments. Previously the funds have only had limited access to financial services as a theme.
The fund suite, the first of which was launched 23 years ago by Friends Provident, encompasses Friends Provident life and pension products as well as open-ended funds marketed by F&C Investments, the manager of the Stewardship portfolios. The £3.5 billion range, run on behalf of around 250,000 investors, represents around half of all UK ethical investors.
The decision to widen the access to financial services follows a review of the sector by the Committee of Reference, the independent panel of experts that sets the ethical criteria for the funds and determines the universe of individual companies eligible for F&C's fund management team to invest in.
"When the first Stewardship fund launched in 1984, financial services practices included little consideration of the environmental and social impacts of the sector," explained Tony Stoller, Chair of the Committee of Reference, "but in recent years, in large part due to the growing influence of sustainable investment, a number of leading insurers and banks have come to integrate these factors into their core lending and insurance practices."
The new policy approved for the Stewardship funds will seek to identify financial services companies eligible for investment that lead the way in terms of three criteria:
1- Innovative insurance and banking products, such as micro-finance, eco-insurance, socially responsible funds and community re-investment schemes.
2- Pro-active management of physical operations and staff, including responsible marketing, business ethics, equal opportunities and diversity, and tackling climate change.
3- Good practice in integrating environmental, social and governance issues into financing decisions, including project finance and asset management.
Companies approved so far for potential investment include Aviva, Rabobank, HSBC and Barclays.
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