Ethical fund launched by Leeds asset management company

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A Leeds-based asset management company owned by the Bank of New York Mellon, is expanding its operations in Yorkshire.

Newton Private Investment Manangement has launched the socially responsible investment (SRI) fund for British charity trustees looking for 'ethical' investments, and expects this will result in an increase in the number of staff working out of its Leeds office.

Aidan Butler, the head of the Leeds office, said: "It's certainly our intention to continue to grow as opportunities arise. We are looking at recruiting further fund management resource over the next 12 to 18 months."

He added: "The clients in Yorkshire are a very broad range, from family groups and associated trusts and pensions, through to charities, local authorities and smaller company pension schemes.

The SRI fund has screening criteria that reflects areas of concern for charity investors. For example, charities may wish to avoid companies involved in gambling, pornography, animal testing and armaments.

Director of business development Ruth Murphy said: "Armaments is probably the most complicated screening area. For example, do you want to avoid companies that make weapons for defending civilians? Or for attacking oppressive regimes?

"Do you want to exclude the contract catering companies who provide catering on UK air bases? Do you want to exclude the people who make the overalls for the aircraft engineers?

"Analysts at Newton and other firms talk to companies and they press them on these things. They say, 'Have you improved your corporate governance? Are you being accountable to your shareholders?'

"Most major UK companies have a greater awareness of that now and do publish their own corporate responsibility reports.

Newton Investment Management, which provides investment products and services to individuals, pension funds, charities and companies, has enjoyed steady growth since its Leeds office opened in 1993. It was acquired by Bank of New York Mellon, which also has offices in Leeds, in 2002.

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