Aberdeen Standard Investment will target companies demonstrating strong management of ESG risks and opportunities with the launch of the Aberdeen Standard SICAV I - Global Corporate Bond Sustainable and Responsible Investment fund
Primarily investing in investment grade debt and debt-related securities, the fund will target a carbon footprint lower than that of its USD-hedged Bloomberg Barclays Global Aggregate Corporate benchmark, while ASI's global investment grade portfolio management team will engage with investee companies on ESG risks and opportunities.
The fund will exclude companies identified as not having sustainable business practices via "binary" exclusions, which identify controversial business activities, and "active" exclusions, which identify companies rated poorly based on their management of ESG risks within their business.
Available to investors in the UK, Australia, Norway, Netherlands, Belgium, Denmark, Finland, Sweden, Italy, Spain, Portugal, Germany and Austria, the fund will charge an annual fee of 1% to retail investors and 0.5% for institutional.
ASI said the portfolio "integrates ESG considerations into every step of the investment decision-making process, thereby avoiding companies with weak ESG performance or exposure to controversial activities, in order to generate sustainable and attractive long-term financial returns".
Head of ESG fixed income and global investment grade portfolio manager Samantha Lamb added: "The goal of this new fund is to make a positive difference - for our clients, society and the wider world.
"It is about investing in companies doing the right things to create portfolios that will help our clients achieve their long-term financial goals. The fund supports making fully-informed decision, delivering positive change and in turn, driving higher standards and stronger returns."