Ethical Investment
Ethical Investment Plans…
Ethical investment Funds have become increasingly popular due to increased public awareness of issues such as climate change and human rights. See below for a selection of Ethical Investment Funds:
| Barclays Wealth Regular Income Bond |  | 7.75% pa** | |
| 5 Year Structured Income Bond with an annual yield of 7.75% or monthly at 0.63%. Can be used for ISA transfers & SIPP investment up to £500,000. |
| Investec Guaranteed FTSE 100 Income Plan | | 6.40% pa**** | |
| 5 Year Capital Protected Structured Income Bond with an annual yield of 6.40%,a quarterly yield of 1.55% or a monthly yield of 0.5%. |
| Invesco Perpetual Corporate Bond Fund | | 6.77%* | |
| This highly popular investment fund aims to achieve a high level of overall return with relative security to capital. Income Paid to you twice yearly. Up to a 100% Discount off the Standard Initial Fund Charge. |
| Artemis Income Fund | | 5.40%* | |
| One of the leading UK Equity Income Funds. The Fund managers hunt out companies with strong free cash flow and solid balance sheets. Income is paid to you twice yearly. 100% Discount off the Standard Initial Fund Charge. |
| Jupiter Corporate Bond Fund | | 5.10%* | |
| The Jupiter Corporate Bond aims to achieve a high level of income with the opportunity for capital growth, through mainly investing in fixed interest securities. Income is paid to you twice yearly. 87.5% Discount off the Standard Initial Fund Charge. |
*Current Income Yields are Gross, Variable & Not Guaranteed
**Guaranteed gross income. May be taxable outside of an ISA
***Historic Yield reflects distributions declared over the past 12 months as a percentage of the mid-market price of the fund as at March 2009.
****Regular income payments, provided FTSE 100 does not halve at any time during the investment period.
Disclaimer (Please Read)
Please bear in mind that:
- Investment ISAs are designed as medium to long term investments, for example at least five years.
- The value of your investment and the level of any income received from it can fall as well as rise and is not guaranteed and you may not get back the amount of your original investment.
- The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.
- The list of funds provided above should not be seen in any way as being a recommendation. No advice has been given and you should be aware that any investment which takes place will be transacted on an “execution only” basis.
- Full details of the funds, including investment performance statistics and risk profile will be provided in the documentation/brochure sent to you and it is up to you to ensure that you fully understand the nature of investment before proceeding. If you are at all unsure of the suitability of the type of investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.
- Any income yield quoted is correct at the time of going to press. Income yields vary and are only estimates. The actual dividend income that you receive will depend upon the income payable by the underlying assets of the fund and could change, either up or down, at any time. Dividend income from an ISA will, under current legislation, be free of UK income tax. Dividend income paid from a fund not held within an ISA will be subject to income tax, which may or may not be reclaimable depending upon your circumstances and the type of investment. In some cases, there may be additional income tax to pay.
- If you choose a fund which invests overseas, there is the addition of “exchange rate” risk which could reduce any gains or increase losses if the currency moves against you.
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| Morgan Stanley FTSE Gilt-Backed Best Entry Growth Plan | | £3,000 | |
| Return is five times any rise in FTSE index at maturity, up to a maximum of 45%. |
| Barclays Defined Returns Plan | | £3,600 | |
| This capital protected plan has a choice of investment terms of 3,4,or 5 years offering a maximum return of 43%. |
| Barclays Defined Returns (Annual Kick-Out 100) Plan | | £3,600 | |
| The 5 year Growth Plan offers an opportunity for attractive pre-defined returns at 10% a year. |
| Barclays Protected FTSE Plan | | £3,600 | |
| Return is twice any rise in FTSE index at maturity, up to a maximum of 50%. Capital protected investment plan. |
| Morgan Stanley FTSE Defensive Gilt-Backed Growth Plan | | £3,000 | |
| The 3 year Growth Plan offers an opportunity for attractive pre-defined returns at 7% a year. |
Disclaimer (Please Read)
Please bear in mind that:
- Investment ISAs are designed as medium to long term investments, for example at least five years.
- The value of your investment and the level of any income received from it can fall as well as rise and is not guaranteed and you may not get back the amount of your original investment.
- The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.
- The list of funds provided above should not be seen in any way as being a recommendation. No advice has been given and you should be aware that any investment which takes place will be transacted on an “execution only” basis.
- Full details of the funds, including investment performance statistics and risk profile will be provided in the documentation/brochure sent to you and it is up to you to ensure that you fully understand the nature of investment before proceeding. If you are at all unsure of the suitability of the type of investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.
- Any income yield quoted is correct at the time of going to press. Income yields vary and are only estimates. The actual dividend income that you receive will depend upon the income payable by the underlying assets of the fund and could change, either up or down, at any time. Dividend income from an ISA will, under current legislation, be free of UK income tax. Dividend income paid from a fund not held within an ISA will be subject to income tax, which may or may not be reclaimable depending upon your circumstances and the type of investment. In some cases, there may be additional income tax to pay.
- If you choose a fund which invests overseas, there is the addition of “exchange rate” risk which could reduce any gains or increase losses if the currency moves against you.
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| Ecclesiastical Amity Sterling Bond | | From £25 Per Month | |
| This income fund with an attractive distribution yield pays income quarterly. Amity Fund Managers actively seek companies contributing to a safer, cleaner world - positive screening - rather than relying solely on negative screening of undesirable companies. |
| Jupiter Ecology Fund | | From £50 Per Month | |
| The objective of the Fund is to achieve long-term capital appreciation together with a growing income consistent with a policy of promoting environmental and social change. |
| Jupiter Enviromental Income Fund | | From £50 Per Month | |
| The Fund aims to provide income and long-term capital growth through investment primarily in UK equities, focusing on good governance companies. |
| Virgin Money Climate Change Fund | | From £50 Per Month | |
| ISA Option Only. The Virgin Climate Change ISA invests in Companies (mainly in the UK & Europe) who aim to drive profit growth |
| Ecclesiastical Amity International Fund | | From £25 Per Month | |
| The objective of this Fund is to achieve long term capital growth with a reasonable level of income primarily through a diversified portfolio of European equities. This Fund provides the opportunity to invest in European companies with strong socially responsible policies. |
*Total 5 Year Return (Standard & Poors)
Disclaimer (Please Read)
Please bear in mind that:
- Investment ISAs are designed as medium to long term investments, for example at least five years.
- The value of your investment and the level of any income received from it can fall as well as rise and is not guaranteed and you may not get back the amount of your original investment.
- The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.
- The list of funds provided above should not be seen in any way as being a recommendation. No advice has been given and you should be aware that any investment which takes place will be transacted on an “execution only” basis.
- Full details of the funds, including investment performance statistics and risk profile will be provided in the documentation/brochure sent to you and it is up to you to ensure that you fully understand the nature of investment before proceeding. If you are at all unsure of the suitability of the type of investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.
- Any income yield quoted is correct at the time of going to press. Income yields vary and are only estimates. The actual dividend income that you receive will depend upon the income payable by the underlying assets of the fund and could change, either up or down, at any time. Dividend income from an ISA will, under current legislation, be free of UK income tax. Dividend income paid from a fund not held within an ISA will be subject to income tax, which may or may not be reclaimable depending upon your circumstances and the type of investment. In some cases, there may be additional income tax to pay.
- If you choose a fund which invests overseas, there is the addition of “exchange rate” risk which could reduce any gains or increase losses if the currency moves against you.
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| Invesco Perpetual Children's Fund | £20 Per Month | |
| The Invesco Perpetual Children's Fund aims to achieve longer term capital growth through a portfolio of investments in UK companies. |
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Disclaimer (Please Read)
Please bear in mind that:
- Investment ISAs are designed as medium to long term investments, for example at least five years.
- The value of your investment and the level of any income received from it can fall as well as rise and is not guaranteed and you may not get back the amount of your original investment.
- The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.
- The list of funds provided above should not be seen in any way as being a recommendation. No advice has been given and you should be aware that any investment which takes place will be transacted on an “execution only” basis.
- Full details of the funds, including investment performance statistics and risk profile will be provided in the documentation/brochure sent to you and it is up to you to ensure that you fully understand the nature of investment before proceeding. If you are at all unsure of the suitability of the type of investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.
- Any income yield quoted is correct at the time of going to press. Income yields vary and are only estimates. The actual dividend income that you receive will depend upon the income payable by the underlying assets of the fund and could change, either up or down, at any time. Dividend income from an ISA will, under current legislation, be free of UK income tax. Dividend income paid from a fund not held within an ISA will be subject to income tax, which may or may not be reclaimable depending upon your circumstances and the type of investment. In some cases, there may be additional income tax to pay.
- If you choose a fund which invests overseas, there is the addition of “exchange rate” risk which could reduce any gains or increase losses if the currency moves against you.
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Investors will generally look at ethical investments for one of two reasons:-
- They wish to take a socially responsible approach to their investment portfolio, aiming to avoid companies that have a negative impact on the environment or on social issues, or;
- They see significant growth opportunities in companies who are likely to benefit from improvements and developments in these areas.
For larger Portfolios, investors have the option to invest directly into companies that they feel meet certain “green” criteria, either through a self managed portfolio of via a stock broker.
However, for many private individuals, it may be more appropriate to look at “collective” type funds, ie, unit trusts, investment trusts, open ended investment companies (OEICs) and pension funds, etc.
More and more investment managers are becoming aware of investors’ wishes to tap into this relatively niche market which has meant that there is significant choice when looking at the most appropriate ethical investment fund for you.
Ethical investment funds can take one of two approaches. Either:-
- Light Green – avoiding stocks that have a negative impact on the environment and its people. For example, avoiding companies in the oil sector or those involve in arms, alcohol or animal testing.
- Dark Green – targeting those companies actively making a positive contribution to the environment and its people. For example, those companies developing renewable energy sources.
A dark green fund is, by its very nature, more likely to invest in small and medium sized companies in markets which are developing such as clean energy and green transport whereas the light green funds will have a significant holding in larger companies, for example, telecommunication companies and banks.
It is possible now to find ethical funds which can invest in equities or fixed interest securities (bonds) and which are growth or income orientated.
In theory, being a socially responsible investor should not impact significantly on your investment planning. As with all investments of this type, however, it is important that professional impartial advice is sought and when choosing a fund you take into account your overall objectives and investment risk profile.
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