F & C announces a major change just in time for it’s 25 year anniversary. Tough time to be changing captains, don’t you think? It’s not like it’s been smooth sailing in the financial markets lately…
From Your investments: a change of stewardship
Next month Britain’s oldest ethical fund, F&C’s Stewardship Growth, celebrates its first quarter century. It will be doing so without Ted Scott, who has been sole manager since 2000 and involved its running more or less since it launched.
He has just returned from a period of sick leave and has decided to concentrate on macro-economic analysis and market strategy rather than day-to-day fund management. He is also giving up his roles as manager of Stewardship Income and the conventional UK Growth & Income.
Interesting development. The change comes at a time of great global financial uncertainty. I guess, the change is due more to HEALTH reasons (see emphasis above).
His successor at the Stewardship funds is Catherine Stanley, who has run the firm’s UK Smaller Companies fund since November 2004. The choice of a small company expert makes sense: Stewardship’s ethical criteria rule out around two-thirds of the FTSE 100.
There goes those pesky “ethics” rules again. Do they really prevent bad things from happening? I don’t think so. If there’s a conflict of interest, it can be covered up.
The Stewardship fund has suffered in recent years because industries like tobacco and mining, which are banned from the fund, have been performing strongly while small companies have been out of favour.
In the long run, I have a feeling “Ethical” companies will be a better bet than tobacco and mining. The key here is to focus on the LONG TERM.