Newton Investment Management has announced the launch of The SRI Fund for Charities.  The Fund will be launched on 17 May 2010, managed by Gemma Woodward, who will be supported by a dedicated charities investment team where the average length of investment experience is over 20 years. 

Newton has created The SRI Fund for Charities to meet the socially responsible investment (SRI) needs of charities that have within their investment policy or their governing document specific ethical or SRI criteria relating to their own charitable objectives. The Fund aims to provide a balanced investment vehicle that meets charities' requirements to grow both income and capital over the long term.

This is Newton's first ethical fund and it is also believed to be the first ethical fund with a broad, well-diversified investment mandate to be available solely for charitable investment. The fund integrates environmental, social and governance (ESG) criteria, which is part of Newton's investment process, along with a negative and positive SRI/ethical screen, into the selection of investments.

Investment in the fund, which is structured as a unit trust, is restricted to UK charity investors in order to provide the taxation arrangements from which charities may benefit. 

Newton has managed charitable investments for over 25 years and is a leading manager of investment assets for UK charities.  Its specialist charities team has considerable experience in managing assets on behalf of a wide range of charities.  Clients, large or small, benefit from Newton's commitment to maintaining high service standards.

Jamie Korner, Director of Charities, comments: "This is an important development for Newton. We are responding to the demand for access to diversified, balanced and pragmatic arrangements which will provide SRI policy compliance with tax arrangements suited to UK charities. It is a pooled version of that which we have been providing for some time on a segregated basis."

Gemma Woodward, lead manager of The SRI Fund for Charities, added "I will be drawing on all of the expertise that we have in managing assets on behalf of charities, supported by our global research and SRI analytical teams, to ensure that we are well placed to deliver long-term returns for our clients."

The Fund's objectives relate to charities' requirements to grow both income and capital over the long term.  This is achieved from a broadly diversified global portfolio covering the world's principal stock and bond (fixed interest) markets.  The investments are diversified by geography, by sector and by major investment themes.  The investment managers select and manage the assets that they believe are best placed to meet the investment objectives of the Fund.  The Fund may hold cash deposits from time to time, where it would be in the interests of efficient management of the Fund's assets.  Income is derived primarily from holding fixed interest securities and from the dividends paid by companies.  Whilst there is no specific income target, the aim is to produce a growing level of income.

The Fund will be benchmarked against a composite of indices, reflecting the main asset classes in which the Fund invests: 50% FTSE All Share Index; 25% FTSE World ex UK (£) Index; 20% FTA British Government All Stocks Index and 5% 7 days LIBID (Cash).

Investment in the Fund is restricted to UK charity investors in order to secure the appropriate taxation arrangements from which charities may benefit.  Minimum investment is £5,000, there is an initial charge of 1% and an annual management charge of 0.75% is charged to capital.

Newton Investment Management is part of BNY Mellon Asset Management.