09/07/10
By Andrew Holt
The Carbon Footprint Fund (CFF) is set to launch an investment range dedicated to helping charities reduce their carbon footprint while achieving a good tracker-style investment performance.
The IFSL Carbon Footprint UK 350 Equity Index Tracker Fund and the IFSL Carbon Footprint Global Equity Index Tracker Fund, developed in conjunction with investment manager BNP Paribas, will be using bespoke FTSE benchmarks - the UK 350 Carbon Optimised Index along with a Global (ex-uk) Carbon Optimised Index which the FTSE is proposing to calculate benchmarks created for the two funds.
The funds are designed to be able to invest in any company which is taking active steps to mitigate and improve their carbon footprint, but it does not follow a full socially responsible investment (SRI) approach.
The reason for this is, according to CFF chief executive, Ralph Pettengell, because SRI has not seen positive returns in recent years, a point disputed by Newton recently.
The funds employ a hybrid procedure for selecting investments, combining a passive filter with an active overlay.
Pettengell pointed out that charities can benefit through investing in the funds by reducing their carbon footprint, helping to meet many trustee obligations by investing in carbon efficient companies
The IFSL Carbon Footprint UK 350 Equity Index Tracker Fund will launch on October 1, and the IFSL Carbon Footprint Global Equity Index Tracker Fund will be launched in the
first quarter of 2011.
During the launch period the funds are being offered at a discounted initial charge of 1%, with an annual management charge of 1.5%, including 0.5% trail commission.
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