King & Shaxson enters SRI market

London, 3 August: King & Shaxson Asset Management (KSAM) has launched two ethical investment funds which it claims take a novel, multi-asset approach to socially responsible investing.

The cautious Balanced Income and the higher risk Green Solutions funds will invest in companies that are addressing social and environmental challenges, the company says. But they will also invest in fixed income, property, commodities and cash.

Wayne Bishop, ethical fund manager at the UK-based firm, said: "There's a lot more to ethical investing than renewable energy. Recycling and water in particular have been overlooked." The funds – structured as open-ended investment companies – will also invest in public transport, medical devices and energy efficiency in both the developed and developing world.

"We have a very good presence in Asian markets. We have previously made successful investments in the Far East, so there will be a focus there," said Bishop.

King & Shaxson is a subsidiary of Singaporean financial services group PhillipCapital. Its asset management arm was established in 2003 when it bought the UK assets of Swiss Life Asset Management and has approximately £250 million ($470 million) under management.

"As far as we know, the cautious managed funds sector currently has no ethical funds that incorporate active asset allocation across the five key asset classes of equities, fixed income, property, commodities and cash," said Bishop.

The funds will screen out companies involved in air and road transport, animal testing for cosmetics and pharmaceuticals, armaments, fossil fuels, gambling, intensive farming, nuclear power, pesticides, pornography and tobacco.

In terms of property, Bishop said that most investments in the sector are ethically neutral. The funds will be exposed to commodities via exchange-traded funds. "You can have exposure to the price without access to the mining," he said.

Both funds are primarily targeted at retail investors with a minimum of £7,000 to invest. They will form part of The King & Shaxson Fund plc, an open-ended umbrella investment company.

Bishop said he expects the funds to attract "a fair few million a year" of investments.