Ethical investment is about to receive a shot in the arm care of some of the biggest names in retail financial services.
AMP is to launch three socially responsible investment (SRI) funds this week and Rothschild is set to follow suit in the next month or so. And BT Funds Management is still examining whether to launch an ethical fund of its own.
Master trust giant Asgard is also about to add ethical funds to its investment menu. The first offering is the Westpac Australian Eco Share Fund. Asgard says it is planning to make further listings in the near future.
AMP this week rolled out a suite of three local and international products – the Sustainable Future Balanced Growth, Sustainable Future International Share and the Sustainable Future Australian Share.
Although Rothschild remain tight lipped about their proposed fund, a spokesperson for the group says plans are currently under way for Rothschild to unveil a ethical fund next month. In line with its mid April release, Rothschild has spent the last few months conducting a survey of retail and institutional sectors to gain industry interest in ethical funds.
BT is not so far advanced in their plans. A spokesperson says the group has been looking into the idea of running an ethical fund, however no decision or timetable has been scheduled.
“We have revisited our research and conducted further research, but at this stage we have made no decision,” the group says.
Despite the interest given by other fund managers, Colonial First State intends to stay clear of the ethical fund push.
“We don’t want to be hypocritical, and that is an issue we would face if we rolled out a fund,” says Colonial’s head of investment markets research Hans Kunnen.
Kunnen says it is almost impossible for one individual or a group of individuals to pin-point what is ethical for everyone.
“If you are going to have a fund specifically labelled as ethical, then you have to choose whose ethics it will be based upon. Some people do not want investments in a range of stocks from gambling, mining, uranium, alcohol and tobacco,” he says.
The ethical list keeps growing
AMP – launched three ethical funds this week
BT Funds Management – still researching
Rothschild – set to launch an ethical fund next month
Westpac – launched an ethical fund early last year
Challenger – launched an SRI in early 2000.
BNP Paribas – launched ethical fund in May 1998
Hunter Hall -ethical manager since 1993.
IOOF – set to launch an ethical fund this year
Glebe Asset Management -ethical investment house since
Asgard – recently added ethical to its fund list
