The Aberdeen Standard SICAV I - Emerging Markets Sustainable and Responsible (SRI) Investment Equity Fund aims to generate strong long-term performance by allocating capital to best-in-class ESG (environmental, social and governance) companies, as well as those seeking to improve ESG practices and uphold recognised sustainability standards. 

In addition to the fund’s holdings enjoying better ESG metrics than sector peers, it has a lower carbon footprint than the index.

The new portfolios consist of high-quality companies that have been identified through a bottom-up assessment of the sustainability of their business models and ESG performance. As part of the in-depth research process, each company is given a proprietary Quality and ESG Quality score enabling the portfolio managers to build a best-in-class portfolio.

The new Fund is part of ASI’s ongoing strategy for sustainable development and complements the global asset manager’s successful Credit and EMD SRI Funds. This is the first of two responsible investment strategies that will be launched by ASI’s 57-strong Emerging Markets team in 2020.

Fiona Manning, investment director at Aberdeen Standard Investments, said: “The new SRI Fund combines two key strengths of our business - emerging market and ESG investment. We have a long history in emerging markets investment and ESG considerations have been incorporated in our stock analysis and decision-making for over 25 years.

“By analysing the foundations of the business and a thorough evaluation of the ESG risks and opportunities, we have identified companies which we believe to be sustainable leaders or improvers. With this approach we can reduce risk, enhance potential value for our investors and invest in companies that can contribute positively to the world.”

Alex Hoctor-Duncan, global sales director at Aberdeen Standard Investments, added: “The goal of the Fund is to make a difference – for our clients, society and the wider world. It’s about investing in companies that are making positive contribution to communities to create portfolios that will help investors achieve their long-term financial goals. Our SRI strategies are part of the broad spectrum of responsible investment strategies we offer to meet investors’ varying objectives.

“We have a duty to act as engaged and active shareholders, influencing companies to the benefit of long-term returns for our clients, as well as it being the right thing to do. Fully embedding ESG into stock analysis and understanding ESG risks and opportunities alongside other financial metrics enables us to deliver a truly differentiated and industry-leading ESG analysis and engagement.”