abrdn has extended its existing £16.5 billion* MyFolio franchise, launching the MyFolio Sustainable Index range. The range of five risk targeted multi-asset fund of funds has been designed to be closely aligned with the MyFolio Index range with sustainability considerations included.
Each MyFolio Sustainable Index fund aims to generate growth over the long term (5 years or more) while being managed to a defined level of risk. The funds 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.
Justin Jones, senior investment manager, 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.”
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. 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’re in are deemed to be controversial.
That means the range avoids companies which manufacture controversial weapons, as well as those who don’t meet UN standard on human rights, labour, environment and anti-corruption (UN Global Compact). The range 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
Daniel Reynolds, Investment manager abrdn added: “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.”
*(as at 31 March 2022)
