Ethical investment indices increasingly important to investors Go compare with our comparison table

Ethical investment indices increasingly important to investors

30 September 2010 / by Paul Dicken

Investors are increasingly looking at sustainable indices for ethical investment products and performance measurement, an industry panel has said.

The UK Sustainable Investment Forum said experts were anticipating growing demand for investments achieving environmental, social and financial value in areas including Exchange Traded Funds.

In the second of its Future of Investment reports the UKSIF convened an industry panel to discuss the trends and developments in sustainable investment.

Penny Shephard, chief executive of UKSIF, said: “Institutional and high net worth investors are increasingly looking at sustainable indexes for both products and performance measurement.”

The report said there were challenges presented to data quality, transparency and standards but these were being addressed by firms taking a lead on developing new approaches to research and advice.

Will Oulton of Mercer consulting said one of the challenges for the industry was integrating environmental, social and governance (ESG) data into the investment process.

“In the longer term we believe that sustainable investment approaches will form an increasingly important part of our clients’ asset allocation decisions and a significant amount of work consists of helping them find the best ideas and strategies.”

David Harris, director of responsible investment at the FTSE group said one of the potential barriers to growth in the area of sustainable indices was transparency.

“Indices need transparent methodologies. There is a danger that indices using opaque assessment approaches may affect the sector’s reputation. It is important for all providers to be clear on index methodologies and how securities are assessed on ESG factors,” he said.

© Fair Investment Company Ltd
 

 Product NameISA OptionIncome YieldMore Info
Invesco Perpetual Monthly Income Plusyes5.25%More Info >
Income Paid Monthly. Popular income fund that aims to achieve a high level of income whilst seeking to maximise total return through investing in high yielding corporate and Government bonds, together with UK equities. See latest fund factsheet for details.
Henderson Strategic Bondyes5.7%More Info >
Income Paid Quarterly. Investing in higher yielding assets which will include most types of fixed interest securities, this fund aims to deliver a quarterly income to investors. See latest fund factsheet for details.
Newton Higher Incomeyes5.4%More Info >
Income Paid Quarterly. The objective of the Fund is to achieve increasing distributions on a calendar year basis with long term capital growth. The Fund may also invest in collective investment schemes. See latest fund factsheet for details.
Distributionyes4.7%More Info >
Income Paid Monthly. Invesco Perpetual Distribution offers a balance between both income and capital growth through investment in UK based equities and fixed interest securities. See latest fund factsheet for details.
Newton Asian Incomeyes5.43%More Info >
Income Paid Quarterly.The objective of the Sub-Fund is to achieve income together with long-term capital growth predominantly through investments in securities in Asia Pacific ex Japan (including Australia & New Zealand) region. The Sub-Fund may also invest in collective investment schemes. See latest fund factsheet for details.
Global Higher Income yes4.7%More Info >
Income Paid Quarterly. The objective of the Sub-Fund is to achieve increasing annual distributions together with long-term capital growth from investing predominantly in global securities. The Sub-Fund may also invest in collective investment schemes. See latest fund factsheet for details.
Jupiter Merlin Income Portfolioyes3.42%More Info >
Income Paid Quarterly. To achieve a high and rising income with some potential for capital growth by investing predominantly in unit trusts, OEICs, Exchange Traded Funds and other collective investment schemes across several management groups. The underlying funds invest in equities, fixed interest stocks, commodities and property, principally in the UK. See latest fund factsheet for details.
M&G Global Dividendyes3.27%More Info >
Income Paid Quarterly. The Fund aims to deliver a dividend yield above the market average, by investing mainly in a range of global equities. The Fund aims to grow distributions over the long-term whilst also maximising total return (the combination of income and growth of capital). See latest fund factsheet for details.
Strategic Bond yes2.2%More Info >
The primary investment objective is to maximise total return (income plus capital ) by investing in global debt instruments,denominated in any currency, ranging from AAA Government Bonds through to high yield and emerging market corporate bonds. At least 50% of the fund will be invested in sterling and other currency denominated bonds hedged back to sterling. See latest fund factsheet for details.
M&G Optimal Incomeyes2.31%More Info >
Income Paid Twice Yearly.The fund aims to provide a total return to investors based on exposure to optimal income streams in investment markets. The fund invests across a broad range of fixed income assets according to where the fund manager identifies value. See latest fund factsheet for details.
*Current Income Yields are Gross, Variable and Not Guaranteed
**Historic Yield reflects distributions declared over the past 12 months as a percentage of the mid-market price of the fund.
*** This is the target yield the fund aims to achieve per year, it is not guaranteed and could change according to prevailing market conditions. The target yield is net of basic rate tax.
Information correct as at 08/02/2012.

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