7IM cuts sustainable fund fees

Wealth manager ‘seeks to broaden the appeal of its proposition for investors interested in responsible investments’

Seven Investment Management has cut 25 basis points from the annual management charge of its Sustainable Balance fund.

The S share class of the £136m fund, which is only available via the 7IM Platform, has a new AMC of 0.75% while the C share class has been reduced to 1%.

The fund, which was launched in 2007, screens out companies with poor ethical practices and those from non-sustainable industries. It also identifies and favours companies which score positively from an ethical standpoint.

A statement said the reduction had been made as 7IM seeks to “broaden the appeal of its proposition for investors interested in responsible investments”.

According to FE Fundinfo data, the S share class of the fund has returned 31% and the C share class 29.5% over five years compared with the IA Mixed Investment 20-60% Shares sector’s 20.6%.

1m3m6m1yr3yr5yr
7IM Sustainable Balance C Acc-1.49-0.734.312.9711.2029.47
7IM Sustainable Balance S Acc-1.47-0.674.443.2212.0331.08
IA Mixed Investment 20/60% Shares TR-1.13-0.654.32-1.662.7820.57
Source: FE Fundinfo

7IM senior investment manager Camilla Ritchie said: “As firms focus ever more closely on implementing guidelines on green and responsible practices, and with the increasing awareness investors have of the impact their money can have on companies and the environment, sustainability is going to be a major trend affecting investment returns in the long term.

“There is mounting evidence to suggest that stocks with high ESG scores are more resilient than those which score poorly. These firms often have better governance, plan better for the future and are less likely to face penalties from governments for breaches of environmental or social codes.”

7IM managing director of intermediary Verona Kenny (pictured) said: “We have seen an increase in demand from investors and advisers looking to place money into these kinds of funds, and we are delighted to be in a position to offer one of the longest running and top performing sustainable strategies to investors at this new, lower cost.”

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Natalie Kenway

Natalie is global head of ESG insight for ESG Clarity and has been an investment journalist for 16 years. She won Editor of the Year at the Aviva Investors Sustainability Media Awards 2021, and was Winner...