Today Vanguard Asset Management have added UK share classes to the Vanguard SRI Global Stock fund and the Vanguard European SRI Stock fund. These are passive funds modelled on a FTSE index, and represent the only passive SRI options available to UK investors. Their very low management costs should help to make them attractive to the growing group of passive investment IFAs and investors.
These two funds have been aimed at institutional investors to date and the size of the funds under management in the short space of time since they were originally launched provides an indication of the growing interest institutions have for ethical investment and SRI products.
The SRI Global Stock fund follows the FTSE All World Developed Index. It was initially launched in Euros on 7th February 2011 and has 137m Euros under management.
The SRI European Stock fund follows the FTSE All World Developed Europe Index. It was initially launched on 29th June 2010 and has 431m Euros under management.
Vanguard say that both funds exclude companies that fail to adhere to the UN Global Compact principles and also exclude companies involved in the production of anti-personnel landmines, cluster bombs or nuclear weapons (not covered by the UN Global Compact). Worldwise Investor hope to follow up shortly with more detail on what these exclusions mean.
The funds have an AMC/TER of 0.35% for the Vanguard SRI European Stock Fund (a purchase fee of 0.20% applies) and 0.40% for the Vanguard SRI Global Stock Fund.
Perry Marsden at Vanguard informs Worldwise investor that IFAs will be able to access this fund on the following platforms at the following dates:
Ascentric, Investor Profile, James Hay, Novia, Raymond James and SEI by the 25th October; Parmenion, SIPP Centre, 7IM and Transact within 48 hours of being requested by an IFA.
Mark Hoskin is a Partner at Holden & Partners. Holden & Partners are Chartered Financial Planners who provide financial advice to high net worth clients, the majority of whom have a significant interest in ethical or environmental issues.
Mark Hoskin graduated with a History degree from Keble College, Oxford and went on to become a Chartered Accountant with Price Waterhouse. He cofounded Holden & Partners in 2003 and is a Certified Financial Planner and Chartered Financial Planner. Holden & Partners set up Worldwise Investor to help both advisers and investors understand quickly and easily how they can benefit from ethical and environmental investment in the UK market.
The value of ethical and green investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks of investing. Our aim is to provide you with the best information we can to help you make decisions about ethical and green investments. It is not to advise you on the suitability of an investment to your personal circumstances. Nothing written on the site should be considered personal advice, nor do Holden & Partners accept liability for any inaccurate information on the site. If you are unsure about the suitability of an ethical and green investment please contact Holden & Partners or your financial adviser.