Abrdn has expanded its MyFolio franchise with the launch of the MyFolio Sustainable Index range.
The five risk-targeted multi-asset fund-of-funds will be closely aligned with the existing £16.5bn MyFolio Index range with sustainability considerations included.
Each MyFolio Sustainable Index fund aims to generate growth over the long term, which Abrdn puts at five years plus, while being managed to a defined level of risk.
The asset manager said 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”.
Senior investment manager Justin Jones (pictured) added: “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.”
The funds have no annual management charge and an ongoing charges figure of 30 basis points.
Key priority is to limit harm
The portfolios are comprised of “carefully chosen funds which meet the requirements of the MyFolio Sustainable Index investment approach”, Abrdn said. Adding that the overarching consideration is “to limit harm through a series of key screens and exclusions”.
This means companies with business practices are deemed controversial, such as the manufacture of controversial weapons, as well as those that don’t meet UN standard on human rights, labour, environment, and anti-corruption.
Daniel Reynolds, investment manager at 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.”