BBVA has launched its first pension plan managed following socially responsible investment criteria (SRI). B
The BVA Moderate Sustainable Plan SRI invests between 30% to 50% of its total pool of assets in equities so it aims to offer a long-term savings solution to investors trying to save for retirement.
The portfolio takes full advantage of BBVA Asset Management's asset allocation process, with a focus on risk control and capital preservation, the company said in a note.
Sustainable investment is not a fad. We think it is a sensible and rational way to invest."
The new pension plan joins the company's SRI investment funds range available to the entity's clients in Spain, which consists of a conservative multi-asset fund (BBVA Futuro Sostenible ISR) and a global equity fund (BBVA Bolsa Desarrollo Sostenible). According to BBVA, the new pension plan is a pioneer in the Spanish market since it incorporates "very rigorous SRI and ESG filters across all asset classes."
The measurement of the SRI criteria is carried out following the MSCI ESG Research, a rating company that assesses the investable companies of the MSCI World index.
The pension product is managed by BBVA's asset allocation team, which has been managing SRI solutions for the past decade.
Alberto Estévez, head of Socially Responsible Investment at BBVA Asset Management, said: "Investing with SRI criteria is profitable and generates long-term benefits with a more controlled level of risk.
"Sustainable investment is not a fad. We think it is a sensible and rational way to invest."