Friends Provident cuts Stewardship charge
Friends Provident has reduced the annual management charges on its Stewardship Pension, Managed Pens...
Friends Provident has reduced the annual management charges on its Stewardship Pension, Managed Pension, Life and Stewardship Managed Life funds.
Charges were reduced from 1.125% to 0.75% from 8 May and the new fees apply to both new and existing policyholders.
Jim Murdoch, communications manager at Friend Provident, said the move had nothing to do with the imminent launch of stakeholder pensions and was aimed more at promoting the group's ethical range. As of 2 July pension fund trustees will have to determine the ethical stance of scheme members and take into account socially responsible investment.
Murdoch said: "The ethical market is said to be the fastest growing sector in the West and it is up to us as pioneers of the market to ensure our products remain competitive."
Stewardship is the market leader in the retail ethical investment market with 50% of the £2.6bn UK ethical funds under management, according to EIRIS. The ethical investment universe now comprises a large selection of companies, according to Murdoch, although the nature of the fund sometimes limited choice. He said: "A large conglomerate might have a small investment in one of the no-go areas of the fund and that would exclude them."
The Stewardship range aims to support companies which make a positive contribution to society, and encourage others to cease their harmful practices such as environmental damage and pollution, exploitation of animals and business arrangements with oppressive regimes.
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