The range of five risk targeted multi-asset fund of funds has been built to be closely aligned with the MyFolio Index range and includes sustainability considerations, according to the firm.
Each MyFolio Sustainable Index fund aims to generate growth over the long term while being managed to a defined level of risk. The fund will invest in a manner that seeks to account for long-term environmental and social risks and opportunities and to promote good corporate governance through investment in other funds.
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As a fund-of-funds range, the portfolios are comprised of carefully chosen funds which meet the requirements of the MyFolio Sustainable Index investment approach, abrdn said. "The overarching consideration is to limit harm through a series of key screens and exclusions. The range allocates capital to avoid companies whose business practices or the industry they are in are deemed to be controversial."
It added that the range avoids companies which manufacture controversial weapons, as well as those which do not meet UN standard on human rights, labour, environment and anti-corruption.
"It backs companies that treat people and the planet well, which means investing in funds seeking lower risks around people and planet or can help companies with lower scores to change direction."
Justin Jones, senior investment manager at abrdn, said: "The MyFolio Sustainable Index range lets customers access investments which aim to do more good and less harm, versus funds without an explicit sustainable mandate, whilst retaining all the benefits of MyFolio's strategic asset allocation and multi-asset portfolio construction approach, at a level of risk they are comfortable with and with a low cost which is capped."
Daniel Reynolds, investment manager abrdn, added that the launch of MyFolio Sustainable Index increases the number of MyFolio ranges to seven, offering advisers flexibility and choice in terms of price, componentry and sustainability credentials. "This new range offers advisers a robust suite of well diversified multi-asset investment portfolios, which explore sustainable investment in a controlled risk environment. Our tried and tested strategic asset allocation process provides a solid foundation from which we aim to deliver strong returns to investors seeking a sustainable approach in their investment choice."
ESG focus
In March 2022, abrdn launched a new ‘Sustainability Group', which saw the appointment of a new sustainability team and 24 SICAV funds converted to Article 8 mandates.
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The new group, which oversees abrdn's overall investment processes and develops new frameworks and standards, is headed up by global head of responsible investment Amanda Young, who was promoted to the executive role of chief sustainability officer.
Young said at the time: "As client expectations continue to focus increasingly on material ESG matters, we must continue to evolve as an active asset manager to provide solutions which meet these expectations. As part of our ongoing commitment to achieve this, and to invest sustainably, we have created the Sustainability Group which is a central component to our investment process."
She added that the group would continue to set the abrdn house view and standards on sustainability matters including climate change, governance, voting and active ownership.
"More broadly, our strong leadership team will help drive abrdn's sustainable investment approach forward, working to influence external bodies on governance, sustainability, engagement and regulatory matters."