Isra-Mart srl : Slow start for first dedicated carbon footprint fund

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Isra-Mart SRL news:

The first dedicated carbon footprint funds have got off to a slow start with the funds going live on Monday, later than anticipated.

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At the launch of the IFSL Carbon Footprint UK Equity Index Tracker Fund in June 2010, Ralph Pettengell, the chief executive said he aimed to launch before the end of the year.

However, due to delays the fund did not launch until Monday and will be invested on 14 February 2011.

Mr Pettengell said: "The delay, which was really frustrating, was due to waiting for Financial Services Authority authorisation of the funds.

"The positive is that it has given us more time to communicate our message to IFAs and stockbrokers."

There has been some good news for the fund's managers since the launch with the government announcing a £12 per ton levy on CO2 in its spending review in October.

Mr Pettengell said political will was increasingly being focused upon tackling climate change issues.

He said: "Using a passive filter with an active overlay, the fund is weighted towards the more carbon efficient companies the the FTSE 350 capitalising on those developments."

The fund tracks the UK 350 Carbon Optimised Index, a benchmark created and calculated by FTSE exclusively for Carbon Footprint Investments and based on the FTSE 350 Index.

Mr Pettengell claimed back testing showed the fund had outperformed the FTSE 100 for the past three years and since the index went live in August 2010 it has risen 13.69 while the FTSE 100 had risen 13.65 achieving "marginal outperformance".

He said: "What we are doing is to develop funds that reduce the investors carbon foot print without detriment to performance.

"The greater the squeeze is to move to a low carbon economy the greater the investors will benefit."

The Carbon Footprint Fund also plans to launch a global fund based on the same principles as the UK fund in the next year.