Tower strikes ethical alliance
Tower Asset Management will expand its socially responsible investments (SRI) offering after it has struck a deal with international SRI manager Storebrand.
The deal will result in Tower having exclusive distribution rights of Storebrand’s global equities fund into the Australian and New Zealand markets which will be added to Tower’s existing SRI fund.
The Storebrand fund, when added to the current Australian SRI equities fund, will be badged locally as the Tower Global Responsibility Fund and be packaged into pooled funds for Australian investors.
The provision of an SRI fund is not new for Tower who have offered an Australian SRI product in Australia for the past fifteen years.
It’s Ethical Fund has outperformed the ASX300 index by 3.59 per cent each year over the last five to 30 June and the move with Storebrand echoes a similar one undertaken in New Zealand earlier this year, with a product launch into the wholesale and retail market.
Tower Asset Management managing director Paul Bevin says the alliance was a result of a global search for a world’s best-practice style SRI management group.
However Bevin says the shortlist of outstanding managers was short and it was difficult to find a manager that meet all the needs of Tower.
"With an objective to win significant superannuation, charitable trust and master trust mandates in Australia, our product must pass the same sort of scrutiny that trustees, fund providers and their consultants apply to any other investment style,” Bevin says.
The agreement also includes comprehensive social and environmental research on Australian companies by Storebrand which will be used to enhance Tower’s current SRI product beyond its negative screen against undesirable products or activities.
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