F&C adds bond fund to ethical range

F&C Investments has launched an ethical bond fund to complement its range of socially responsible equity funds.

The F&C Ethical Bond fund launched on 1 October. It is managed by Rebecca Seabrook, who runs the F&C Sterling Corporate Bond (F&C Corporate Bond ) fund, with Ian Robinson acting as the assistant manager.

Seabrook and Robinson are co-heads of F&C’s UK credit team.

The fund is the fifth in its sustainable range following the launch of the F&C Climate Change Opportunities fund.

The Uctis III fund has been seeded with £40 million. It will be managed in a similar way to the firm’s conventional corporate bond fund, which is managed by Robinson, but with an ethical screen.

This screen is identical to the one adopted by Ted Scott's Stewardship stable of funds where the investment universe is screened for positive and negative criteria by an independent policy committee.

The fund uses Ucits III powers such as currency forwards, interest rate swaps and single name credit default swaps, to hedge investment risk and generate additional return.

Seabrook targets credit from issuers which contribute to sustainable development.

These include companies which provide basic necessities of life such as housing and water to help meet sustainable development challenges like renewable energy. She will also target firms with good environmental and human rights policies.

Seabrook will not invest in firms involved in tobacco, alcohol production, gambling, pornography and the weapons industry.