7IM reduces annual management charge for Sustainable Balance fund
7IM has reduced the annual management charge for its Sustainable Balance fund from 1.00 per cent to 0.75 per cent as it seeks to broaden the appeal of its proposition for investors interested in responsible investments.
The fund, which launched over 13 years ago, has a strong track record and over the past 5 years alone it has delivered a return of 39 per cent compared to the 25 per cent returned from its IA comparative benchmark.
Launched in 2007, the fund follows the same robust strategic and tactical asset allocation processes that underpin all other 7IM strategies but adopts a rigorous sustainable screening process.
This process looks to exclude companies with poor ethical practices and those from non-sustainable industries, as well as identifying and favouring those companies which score positively from an ethical standpoint.
At a company level, 7IM has also committed to incorporating ESG - Environmental, Social and Governance issues into its investment process, having signed up to the UN Principles for Responsible Investment and by being a signatory to the UK Stewardship Code. Furthermore, 7IM has maintained a programme of charitable work for many years and takes part in various initiatives to reduce its carbon footprint, for example, within the buildings 7IM occupies.
Camilla Ritchie, Senior Investment Manager at 7IM, says: “As firms focus ever more closely on implementing guidelines on green and responsible practices, and with the increasing awareness investors have of the impact their money can have on companies and the environment, sustainability is going to be a major trend affecting investment returns in the long term.
“There is mounting evidence to suggest that stocks with high ESG scores are more resilient than those which score poorly. These firms often have better governance, plan better for the future and are less likely to face penalties from governments for breaches of environmental or social codes. This goes part way to explaining why funds like the 7IM Sustainable Balance fund has delivered better returns than the industry average.”
Verona Kenny, Managing Director of Intermediary at 7IM, says: “Investors are more aware than ever that how they invest has a role to play in providing a sustainable and responsible future for us all. Investors want to make a positive difference and we are excited to be able to help them do just that. What was once a satellite holding for some clients is now becoming a central pillar for many investors’ portfolios as more clients want to be able to make a positive difference with their investments.
“We have seen an increase in demand from investors and advisers looking to place money into these kinds of funds, and we are delighted to be in a position to offer one of the longest running and top performing sustainable strategies to investors at this new, lower cost.”