Aberdeen Standard Investments (ASI) has launched a new Fund, which seeks to generate strong long-term performance by allocating capital to companies which demonstrate strong management of their environmental, social and governance (ESG) risks and opportunities.
The Aberdeen Standard SICAV I - Global Corporate Bond Sustainable and Responsible Investment Fund will be managed by our Global Investment grade portfolio management team The Fund’s investment objective is long-term total return to be achieved by investing primarily in investment Grade Debt and Debt-Related Securities issued by corporations worldwide. The Fund will use ASI’s well established active management approach of security selection tailored to the overall environment, which combines fundamental and ESG considerations into individual name, sector and top down portfolio construction decisions. An assessment of a company’s sustainability is supported by a deeply embedded ESG framework, using on-desk credit and integrated central ESG resources.
Samantha Lamb, Head of ESG Fixed Income and Global Investment Grade Portfolio Manager, Aberdeen Standard Investments, said: “The goal of this new Fund is to make a positive difference – for our clients, society and the wider world. It’s 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.”
The Fund will:
- Exclude companies identified as not having sustainable business practices. This is achieved through a set of ‘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.
- Engage with companies to gather a forward looking insight into management of ESG risks, opportunities and actively influence the management of these factors in line with best practice standards.
- Target a carbon footprint that is lower than the benchmark.
The outcome is a portfolio that 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.
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Notes to editors
- The Fund has initially been registered for sale in Luxembourg, Switzerland, Ireland, the United Kingdom, Australia, Norway, Netherlands, Belgium, Denmark, Finland, Sweden, Italy, Spain, Portugal, Germany and Austria.
- The Fund’s Asset Management Charge (AMC) amounts to 0.5% per annum for institutional investors and 1% per annum for retail investors.
- The Fund’s portfolio will be typically hedged back to Base Currency
- The Fund is actively managed. The Fund aims to outperform the Bloomberg Barclays Global Aggregate Corporate Bond (hedged to USD) Index benchmark before charges. The benchmark is also used as a reference point for portfolio construction and as a basis for setting risk constraints
- Aberdeen Standard Investments is a global asset manager dedicated to creating long-term value for our clients. With over 1,000 investment professionals, we manage £486.5 billion* of assets worldwide. We have clients in c.80 countries supported by over 40 offices globally. This ensures we are close to our clients and the markets in which we invest. (*as of 31 December 2019)
- We are high-conviction, long-term investors who believe teamwork and collaboration are the key to delivering repeatable, superior investment performance.
- Standard Life Aberdeen plc is headquartered in Scotland. It has around 1.2 million shareholders and is listed on the London Stock Exchange.
- You can access the Aberdeen Standard Investments media centre here: https://www.aberdeenstandard.com/news-and-media
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