Schroders has launched Sustainable Multi-Factor Equity (SMFE) fund, a global equity strategy that integrates environmental, social and governance (ESG) analysis into a systematic investment approach.
The cost-effective SMFE fund will aim to outperform the MSCI All Country World Index, while savers will also benefit from Schroders’ sophisticated approach to investing sustainably.
It will particularly appeal to UK Defined Contribution (DC) schemes, as it provides a distinctive solution that meets members’ growing demand to invest their pension savings more sustainably.
SMFE fund is based on Schroders’ successful Global Multi-Factor Equity fund, which launched last year. Both strategies harness Schroders’ factor investment capabilities to provide exposure to proven return sources: quality, momentum, value and low volatility.
Additionally, it will feature an innovative approach to integrating sustainability into equity investing. At its core is Schroders’ new proprietary framework, SustainEx, which measures the positive and negative ESG impacts companies place on society and the environment.
To further meet clients’ expectations of sustainable portfolios, it will have less than half the carbon intensity of the index and exclude industries such as tobacco, weapons and gambling companies.