ebi Portfolios, the discretionary fund manager, and Amundi, Europe’s asset management organisation, have unveiled the SRI portfolio line, a new socially responsible investment option.
This set of low-cost model portfolios is aimed for investors looking for a global broad SRI solution.
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It invests in passively managed funds that provide access to ESG-rated equities and ESG-screened bonds across the world.
Several Amundi SRI PAB equity funds that mirror MSCI SRI Filtered PAB regional indices are included in the SRI equity portfolio.
The index’ methodology focuses on 25% of ESG-rated companies relative to their sector peers and includes a broad spectrum of systematic environmental and social exclusions, as well as companies that generate revenue from thermal coal mining or oil and gas extraction.
Furthermore, they are in line with the EU Paris-Aligned Benchmark (PAB) regulatory minimal standards, which include:
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By GlobalData- A reduction in carbon intensity by 50%, compared to the underlying investment universe.
- A reduction in carbon intensity by 7% on an annualised basis.
The SRI bond component makes investments in two bond funds that follow the Solactive Global Bond ESG Climate indices and are overseen by Northern Trust Asset Management.
These are centered on a global investment grade bond universe that is evaluated for ESG scores and carbon emissions, with the goal of reducing corporate bond carbon intensity by 50% compared to the parent index.
Moreover, there are five different strategies in the range, with equity ratios ranging from 100% to 20%.
Each portfolio is split between two fixed income funds and/or a variety of regional equity funds.
Combining the two fixed income funds to target a shorter duration than the overall market reduces risk in the SRI bond part.
ebi’s investment product manager, Jonathan Griffiths, CFA, commented: “With the launch of our SRI portfolios, we are in the sweet spot where these two elements align. Providing enhanced ESG screening, and market-leading equity exposure aligned with the EU Paris-Aligned Benchmark minimum requirements, these portfolios are an exciting addition to our product suite and the wider MPS space.”
Ashkan Daghestani, head of ETF, Indexing, and Smart Beta sales for UK & Ireland at Amundi, added: “We are pleased to be selected by ebi, which will enable more and more UK investors to have access to our low-cost SRI index-based solutions. This partnership demonstrates our commitment to meeting the needs of UK investors, in particular for ESG index solutions at competitive pricing.”
In June 2023, ebi reached the landmark of £2bn ($2.5bn) in assets under management (AUM), which has now surpassed £2.5bn.
