Ethical Investment
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Ethical Investment, Financial Planning, Socially Responsible Investments (SRI), ISA, Funds, Stakeholder, UK
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Ethical Fund Supermarket
Ethical Investment through the Fidelity FundsNetwork
There has been something of a revolution in recent years in respect of clients seeking to invest in ethical funds.
It has generally been the case that most ethical investors, looking for an ethical ISA, Unit Trust or OEIC have invested directly with a product provider (such as Norwich Union or Jupiter). In this case the product provider may act as both the fund manager (investing the money) and the fund administrator (providing statements, valuations etc).
However, the advent of the Fund Supermarket has provided the ethical investor with the opportunity to invest with a central administrator, whilst being able to access within the one contract a range of ethical funds from different fund managers.
There are significant advantages to investing with a Fund Supermarket, whether you have existing ethical investments, or you wish to consider starting a new ethical investment.
Investing new money into an Ethical Fund
If you are considering investing a new sum into an ISA, or Unit Trust/OEIC, using a Fund Supermarket can offer significant advantages:-
It allows you to invest a lump sum into the central administrator, and then spread your investment amongst several fund providers at no extra cost compared to going to the fund manager direct (for example one Fund Supermarket we have used for our clients has approximately 30 ethical funds to choose from). This can help mitigate investment risk by spreading your investment across several providers.
It is all done with the minimum of paperwork as you will receive one statement, showing all your holdings within the Supermarket and their current total value.
Existing Investor in an Ethical Fund
If, at present, you have one or more individual investments in an ISA or Unit Trust/OEIC that are both managed and administered by the product provider then you may be able to move them to one central administrator. In particular, if you have investments with more than one provider, you may be inundated with statements and paperwork throughout the year from these different providers. It may therefore be simpler to have all your holdings administered by one organisation whilst continuing to invest in a range of different funds.
Not surprisingly, it is now becoming very popular for clients to have their investments administered from one central source, and this administrator is often known as a Fund Supermarket. The process of transferring the administration of your investments from the provider of the investment fund to an independent administrator/Fund Supermarket is known as re-registration.
When you re-register eligible funds to a Fund Supermarket, they simply take over the administration of the investment, and your money stays invested in exactly the same funds. The advantage is that both you and ourselves are then able to monitor and manage all your investments in one place. Please see below for the list of ethical funds that can currently be reregistered to one of the main Fund Supermarkets.
The Fidelity FundsNetwork
One Fund Supermarket we feel is worthy of your consideration is The Fidelity Funds Network that offers the following features:
- Makes no additional charges for investment in the Fund Supermarket
- Makes no charge for a partial or full withdrawal of funds at any time other than the fund providers own charges
- offers a wide selection of appropriate ethical/financial funds
- provides internal switching at a competitive cost
- has a sound administrative and corporate track record in the area of the provision of Fund Supermarkets
- has no additional charge for investment or partial or full withdrawal compared to going direct to the Fund provider
- provides internal switching in almost all cases at a rate of 0.25% of the amount switched
- has one of the largest range of funds to choose from of any of the Fund Supermarkets at over 900 funds, including around 30 ethical options
- was the first and largest of the Funds Supermarkets and has a wide range of administration and online facilities.
- Will pay the administration charges that any third party may levy for the Re-registration of your funds across to the Supermarket.
Additional information about FundsNetwork
- FundsNetwork is the fund supermarket service provided by Fidelity Investments, which offers investors access to over 900 funds from 54 leading fund providers
- New investments can be made by lump sum or monthly savings, either through a tax-efficient ISA or as a straightforward fund investment
- FundsNetwork can be used to consolidate your entire investment portfolio including ISAs and fund investments through transferring or re-registering qualifying funds
- With FundsNetwork your investment can be opened either online using your switch or delta card details or with a paper application form and cheque.
- You only have to deal with FundsNetwork and myself rather than every fund manager you invest with, and all your investments appear on the same statement, either on screen or on paper, with up-to-date valuations always available online.
- You have access to all of your account information 24 hours a day 365 days a year through FundsNetwork's online Account Management service and the website www.fundsnetwork.co.uk also allows you to see at a glance how your portfolio is diversified across different economic sectors, geographic regions and investment styles
More choice, more flexibility
With a wide choice of funds on offer, FundsNetwork enables you to spread your investment and diversify your portfolio. For example, in a new Maxi ISA your £7,000 could be invested with seven different fund management companies and diversified across the funds that they offer. No longer are you tied to a single company and their funds – with FundsNetwork there is the flexibility to rearrange your portfolio quickly and easily. If your circumstances change, then funds can be switched online. You are not restricted to this choice just for ISAs, you can use FundsNetwork for investments outside of an ISA, or transfer or re-register your ISA, or switch funds in your existing Fidelity account.
Value for money – Charges
FundsNetwork is price neutral – this means that you pay no extra charges for buying funds through the service, compared to what you would pay if you dealt with fund companies directly – therefore you get all the extra benefits at no extra cost. Further, FundsNetwork automatically ensures that any fund provider discounts which you may be entitled to are reflected in the initial charges you pay and can reflect any special terms your IFA may have negotiated for you.
Switching
Once your investments are on FundsNetwork, it is inexpensive and easy to move between funds offered by different fund companies. You will benefit from a low switching charge – normally 0.25% - whenever you decide to switch between funds in the future. On some types of investment, there may be an additional bid-offer spread to pay. Switching can be done online or via your Independent Financial Adviser. It should be noted that if you were to remain with your existing administrator, and were to switch to another fund within that administrators own range, then they may not necessarily make a charge.
In Summary
FundsNetwork offer an opportunity for you to diversify your investments across a range of funds and providers. FundsNetwork has one of the widest fund ranges available through any UK Fund supermarket and with no extra cost. Once you are invested through FundsNetwork you will be able to track and monitor your portfolio quickly and easily on-line through FundsNetwork Account Management. FundsNetwork is backed by the resources & expertise of Fidelity Investments.
Discounts for investing new Investments into the Fidelity FundsNetwork
If you wish to use the Fidelity FundsNetwork, we can offer significant discounts on the initial charge into the ethical funds listed below.
The following table provides full details of the ethical funds available via the Fidelity Funds Network and the discounts you will receive for new investments of at least £4000. More information on each fund can be obtained by clicking on the fund name. Reduced discounts are available for amounts lower than this. Please contact us for details.
In all cases, the Annual Management Charge on the above funds remains the same. It is possible to invest in a combination of two or more of the above funds through a Fund Supermarket ISA, or OEIC/Unit Trust. This may be particularly attractive to investors who wish to spread their investment between ethical funds as a means of seeking to mitigate investment risk.
Whilst the above list represents the majority of FSA UK registered ethical and environmental funds it is not exhaustive, and no advice or recommendation is implied by providing you with this list. If you are seeking independent advice on choosing suitable funds for your particular requirements then please contact us to discuss your needs further. If you do require specific advice then we will require to undertake a financial review, and provide a written recommendation, and as such we will not be able to offer any discounts. Fidelity Fund Supermarket is not suitable for everyone. If you have any doubts about its suitability please contact me for advice on 01772 733338.
Reregistration of Existing Ethical Funds
The list of ethical funds that can be reregistered into the Fidelity FundsNetwork is as follows:-
| Fund name | Fund code |
| Aberdeen Ethical World Acc | ABMEA |
| Aberdeen Ethical World Inc | ABMEI |
| Aegon Ethical | AETHL |
| Aegon Ethical Corporate Bond Acc | AESRA |
| Aegon Ethical Corporate Bond Inc | AESRI |
| AXA Ethical | AXETH |
| Credit Suisse Fellowship Fund | CRFLW |
| CS Premier Fund of Funds Ethical Acc | ARMEA |
| CS Premier Fund of Funds Ethical Inc | ARMEI |
| Framlington Health Fund Acc | FMHLA |
| Framlington Health Fund Inc | FMHLI |
| Henderson Global Care Growth Fund | HDGCG |
| Henderson Global Care Income Fund | HDGCI |
| Henderson Global Care Managed Fund | HDGCM |
| Henderson Industries of the Future Fund | HDETH |
| Insight Investment European Ethical | ISEUE |
| Insight Investment Evergreen | ISEVE |
| Jupiter Ecology Fund | JUECO |
| Jupiter Environmental Opportunities Fund | JUENO |
| Legal & General Ethical Trust Acc | LGETA |
| Legal & General Ethical Trust Inc | LGETI |
| Morley Sustainable Future Absolute Growth | NUSFA |
| Morley Sustainable Future Corporate Bond | NUSFC |
| Morley Sustainable Future European Growth | NUSFE |
| Morley Sustainable Future Global Growth | NUSFG |
| Morley Sustainable Future Managed Fund | NUSFM |
| Morley Sustainable Future UK Growth | NUSFU |
| Norwich Union UK Ethical Fund | NUAET |
| Old Mutual Ethical Acc | GRETA |
| Old Mutual Ethical Inc | GRETI |
| Rathbone Ethical Bond Acc | RAEBA |
| Rathbone Ethical Bond Inc | RAEBI |
We will undertake the reregistration of any of these funds into the Fidelity Funds Network for a one-off administrative fee of £50.00, no matter how many funds you wish to reregister.
How to start the process of investing new money at a discount or reregistering existing funds across to the Fund Supermarket
In order to start the process of either investing new money in, or reregistering, one or more of the above funds, please click here to contact us so that we can arrange to forward you the appropriate paperwork (by email) in order for you to undertake this transaction.
When sending through your contact form, please provide details of whether or not you wish to invest new money or reregister existing ethical holdings. Also say how much you wish to invest, into what funds and what product (e.g. ISA ). We look forward to being of service.
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