New ethical fund from Aberdeen Unit Trust Managers Ltd
The Aberdeen Ethical Engagement UK Fund is a sub-fund of Aberdeen Investment Funds ICVC (UK-domiciled OEIC). In ethical funds, "the manager aims to use his position as stakeholder proactively to promote ethical corporate behaviour and will favour companies demonstrating progress in that regard." Basically, you give the manager some money, he puts it in a bag with money from other people, and when the bag gets big enough, he can use it to smack people when they're not nice to their workers. This is better than giving it to a manager who uses the full bag to smack anybody who gets in his way.
The Aberdeen Fund in particular focuses on good corporate governance, the environment, labour equity and human rights. All of which are good.
This approach addresses the growing desire of pension schemes to engage pro-actively in the promotion of high standards of corporate ethics, but does provide the flexibility to invest widely rather than be constrained by rigid negative screening which, in certain circumstances, can prove to be too inflexible. Sounds like it aims to be a nimble little moneymaker with a heart of gold. We wish it all the best.
[GT]
