The fund is managed by Matt Evans, UK equity fund manager, and adds to Columbia Threadneedle’s range in ethical and sustainable investing. The company believes that demand is growing for responsible investment solutions.

The actively managed fund will aims to achieve a total return from capital growth and income by investing in stocks which meet the ethical criteria of the fund.

Stock selection has two key components; firstly, screening to avoid companies that are involved in business activities such as alcohol, tobacco, weapons. Secondly, the fund actively targets companies that have a strong approach to environmental, social and corporate governance factors as well as those that show potential to deliver innovative solutions to achieving sustainable outcomes.

Matt Evans is supported by a responsible investment team of four. Mr Evans will also utilise the research and stock ideas of Columbia Threadneedle’s 12-strong UK equities team.

Mr Evans said: “It is our belief that companies that operate in an ethical way are more likely to generate sustainable returns over time. There is also a huge investment opportunity in those companies who can deliver solutions to the world’s sustainability challenges.

The fund launched with £22.7m following the transition of investors from the Teachers Sovereign Ethical Fund, following the transfer of the Teachers Assurance unit trust business to Columbia Threadneedle in Q4 2015.

In January 2014, Columbia Threadneedle Investments launched the Threadneedle UK Social Bond Fund.