The launch of a new Trust
A Family Assurance Friendly Society case study

Page 1: Introduction

All organisations must serve the needs of their customers. These needs change over time, making it necessary for business organisations to adapt their existing product portfolios continually. This case study focuses on the way in which the Family Assurance Friendly Society introduced new ethical criteria into an existing Unit Trust in response to demand from investors.The term...
Read full page

Page 2: What is a friendly society?

Prior to the establishment of the Welfare State in 1948, the only way ordinary voting people could provide protection for themselves against misfortune such as illness, accident or death, was by joining a friendly society. The friendly society movement actually dates back to the sixteenth century and today there are over 300 friendly societies in the UK representing the interests of over six...
Read full page

Page 3: The product

Before committing itself to the new product, Family Assurance needed to understand the scope of the project fully. In particular, the following questions needed answering: Is the product relevant to the target audience? (particularly to members investing for the young) Is the ‘Offer’ relevant to the distribution channel? (could it be sold through Family Assurance’s existing...
Read full page

Page 4: Ethical investment

Ethics are the moral values and principles which influence how individuals, groups and society behave. Business ethics are therefore the values and principles which operate in the world of business. In business, it is possible to carry out many practices which are not strictly ethical, yet are lawful. However, many successful companies are based on strict ethical principles and most people would...
Read full page

Page 5: Methods of investing

There are two ways to invest in The United Charities’ Ethical Trust, either in a Personal Equity Plan (PEP), which will ensure that all returns are completely free of income and capital gains tax, or directly into the Unit Trust itself. It should be noted that PEPs are only available to investors over 18 years old. Investors in the Ethical Personal Equity Plan can make a lump-sum...
Read full page

Page 6: Conclusion

Ethical investment is an area of business life which continues to expand. The first ethical unit trust, Stewardship, was launched by Friends Provident in 1984 and there are now over 40 ethical investment funds in the UK.Some people are cynical about the development of such initiatives. They feel it is merely a new way for organisations to profit from jumping on a bandwagon. However, there can be...
Read full page

Related: Tata Steel
Case studies in Business Case Studies