Schroders has launched a sub-fund within Schroder International Selection fund (Schroders ISF) range, Schroder ISF Sustainable Multi-Factor Equity (SMFE).
SMFE is a global equity strategy that integrates environmental, social and governance (ESG) analysis into a systematic investment approach and was originally launched to UK investors in September 2018.
The cost-effective SMFE fund will aim to outperform the MSCI All Country World Index, while investors will also benefit from Schroders' sophisticated approach to investing sustainably.
It 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, the SMFE fund 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, the SMFE fund will have less than half the carbon intensity of the index and exclude industries such as tobacco, weapons and gambling companies.