Aberdeen Standard Investments has announced it's to launch a sustainable global bond fund, which will exclude firms for not having sustainable or ESG-based business practices.
Primarily investing in investment grade debt and debt-related securities, the fund will target a carbon footprint lower than that of its USD-hedged Bloomberg Barclays Global Aggregate Corporate benchmark, while ASI's global investment grade portfolio management team will engage with investee companies on ESG risks and opportunities.
The fund will charge 1% to retail investors and 0.5% to corporates, and will be open to investors in the UK, Australia, Norway, the Netherlands, Belgium, Denmark, Finland, Sweden, Italy, Spain, Portugal, Germany and Austria.
The goal of this new fund is to make a positive difference – for our clients, society and the wider world."
In a statement Aberdeen Standard Investments said the fund ""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."
Samantha Lamb, head of ESG fixed income and global investment grade portfolio manager at Aberdeen Standard, 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."
She added, "The fund supports making a fully-informed decision, delivering positive change and in turn, driving higher standards and stronger returns."