InvestmentsNov 4 2015

Ethical fund targets TR

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Ethical fund targets TR

Columbia Threadneedle has launched an ethical UK equity fund as demand continues to grow for responsible investment solutions.

The Threadneedle Ethical UK Equity Fund aims to achieve a total return from capital growth and income by investing in stocks that meet the ethical criteria of the fund.

Key features

The fund launched with £22.7m following the transition of investors from the Teachers Sovereign Ethical Fund

It will avoid companies involved in areas such as alcohol, tobacco and weapons

It actively targets companies that have a strong approach to environmental, social and corporate governance

It also targets companies that show the potential to deliver innovative solutions to achieving sustainable outcomes

Adviser view

Jonothan McColgan, director of Somerset-based Combined Financial Strategies, said: “Any fund can be used it if is appropriate for clients. They should invest their money where they see fit, but we have to help them understand the risks involved, and what is, and what is not, an ethical fund.

“One also has to ascertain whether such a fund would leave investors with a realistic way to reach their investment goals, as screening may mean that they miss out on large areas of investments, so their portfolio performance could be restricted, become less diversified and therefore potentially more volatile.”