Ethical fund safeguards against market falls

Friends Provident launches ethical investment fund with a safeguard against stock market falls.

15:11 15 June 2004

Friends Provident is launching an ethical investment fund with the safeguard of offering protection against a fall in the stock market.

The FTSE 100 financial services group, says the Stewardship Safeguard Optimiser, combines a portfolio of equities, selected on ethical grounds, and a cash component.

The added bonus is that the fund has a safeguard level of 80 per cent of the highest ever unit price previously achieved, to provide a clearly defined protection if the market falls.

Both the equity portfolio and the money will be managed to deliver a smooth growth when the stock market rises.

Head of investment marketing at Friends Provident, Ian Jefferies, said: "The aim of Stewardship Safeguard Optimiser is to remove two big obstacles which deter many investors from buying equity funds."

He continued: "One is their wish to put money only into companies which have a proper regard to environmental, social and ethical issues and the other is to minimise the risk of stock market falls."

The fund has been designed as a result of research conducted among independent financial advisers, to assess the views of themselves and their clients on ethical investment and risk.

It found that 59 per cent of IFAs believe their clients would be more likely to invest in ethical funds if a lower risk one were available

A further 53 per cent said that a lower risk ethical fund would make them more likely to discuss ethical investment with their clients.