Aberdeen Standard Investments (ASI) has launched a new sustainable emerging markets equity fund which seeks long-term performance through “best-in-class” ESG companies.
The Aberdeen Standard SICAV I - Emerging Markets Sustainable and Responsible Investment Equity fund targets both firms with existing ESG credentials and those that are "seeking to improve", in addition to which the current holdings have "a lower carbon footprint than the index".
Each company is given a proprietary "quality and ESG quality" score, identified through a bottom up assessment of both the sustainability of the business models and ESG performance.
The fund is the first of two responsible investment strategies due to be launched by the emerging markets team in 2020 and comprises part of ASI's "ongoing strategy for sustainable development".
Fiona Manning, investment director at ASI, said: "The new SRI fund combines two key strengths of our business - emerging markets and ESG investment. We have a long history in emerging markets investment and ESG considerations have been incorporated in our stock analysis and decision-making for over 25 years.
"By analysing the foundations of the business and a thorough evaluation of the ESG risks and opportunities, we have identified companies which we believe to be sustainable leaders or improvers.
"With this approach we can reduce risk, enhance potential value for our investors and invest in companies that can contribute positively to the world."
Alex Hoctor-Duncan, global sales director for ASI, added: "The goal of the fund is to make a difference - for our clients, society and the wider world.
"It is about investing in companies that are making positive contributions to communities to create portfolios that will help investors achieve their long-term financial goals."