Ecclesiastical Amity International fund

Andy Parsons, head of investment research at The Share Centre, explains why the Ecclesiastical Amity International fund has been added to our preferred list of funds, the Platinum 120, and what the benefits are for investors.

There are an increasing number of issues that influence investment choice, and for many the desire for good returns often overtakes any moral principles.

"However, because we believe the Ecclesiastical Amity International fund could allow investors to achieve long term returns and satisfy any moral concerns they may have, we have added it to out preferred range of funds.

"The fund is considered a pioneer within the Socially Responsible Investing (SRI) arena. It focuses on companies that offer value and subjects potential investments to positive and negative screens.

"The fund invests in companies that make a positive contribution to society and the environment through sustainable and socially responsible practices. Investors can be assured that through a positive and negative screening process, the fund will only invest in companies the manager truly believes will offer the best long term opportunities within its strict investment mandate.

"The negative screen relates to certain areas that many ethical investors like to avoid, including companies which operate in alcohol related sectors, gambling, pornography, strategic armaments, and tobacco, as well as animal testing and intense farming. The positive screen checks for compliance with broader conditions and will examine such issues as corporate governance, human rights, labour relations, community relations, education and healthcare.

"All the investment ideas are initially generated by the fund manager, who undertake their due diligence and continuing financial analysis of a company, the idea is then shared with the SRI team who have the  responsibility to undertake the screening element. In terms of performance, the fund has a strong cumulative record over five years and three years respectively.  Over the five year period, it has returned 43.64% compared to a sector average of 8.73%, ranking it first quartile and 7th out of 163 funds.  On a three year cumulative performance, it has returned 43.01% compared to the sector average of 39.73%, ranking it second quartile and 80th out of 202 funds.