Stewardship the UK’s first ethical fund range tops £3 billion landmark

The Friends Provident Stewardship ethical fund range topped the £3 billion mark at the end of 2006.

Driven by healthy performance and new investment spurred on by an increase in public interest in ethical investment, the suite of funds has steadily grown since its inception over 22 years ago in 1984.

Both the Friends Provident Stewardship Life Fund and the Friends Provident Stewardship Pension Fund have achieved top quartile performance since launch in their respective sectors (UK All Companies). Their sister OEIC fund, the Stewardship Growth fund, marketed by F&C Asset Management, has also delivered market beating returns over 1, 3 and 5 years.

Over time the funds have remained true to their origins and throughout their existence have applied some of the strictest ethical, social and environmental screens of any ethical funds available to individual investors in the UK today.

Julia Dreblow, socially responsible investment marketing manager at Friends Provident, said: “This is really an achievement to be proud of. This is now a £3 billion fund range that at its outset cynics predicted would struggle to reach even £3 million. The success of these funds firmly proves that combining ethics with sound investment performance is perfectly possible. Over recent years investors have been increasingly putting two and two together, matching their personal values with their investment decisions. Through Stewardship they have joined forces to support companies that take ethical issues seriously whilst steering clear of those that do not.”

Ted Scott, fund manager of the Friends Provident Stewardship Life and Pension Funds, said: “Over the long term these portfolios have beaten the median funds in their respective sectors, despite their more restrictive universes. They have also managed to do so with lower levels of volatility than the typical fund.”

The Stewardship Life and Pension funds are managed by F&C for Friends Provident, the FTSE 100 life and pensions company. F&C employs a 15-strong Governance and Sustainable Investment team. Decisions with regard to ethical policy, and which companies should be allowed into the eligible universe for the funds, are made by an independent Stewardship Committee of Reference, comprising individuals with experience in charities, NGOs and business.