Discretionary fund manager ebi Portfolios and Europe’s largest asset management firm, Amundi, today (20 February) unveiled a new socially responsible investment solution, the SRI portfolio range.
This suite of low-cost model portfolios are designed for investors seeking a globally diversified SRI solution, investing in passively managed funds providing exposure to best-in-class ESG-rated equities and ESG-screened bonds globally.
The SRI equity portfolio invests in a range of Amundi SRI PAB equity funds, which track MSCI SRI Filtered PAB regional indices. The indices’ methodology focuses on the top 25% ESG-rated companies relative to their sector peers and adopts a wide range of systematic environmental- and social-based exclusions, also excluding companies generating revenue from thermal coal mining or oil and gas extraction.
Additionally, they are aligned with the EU Paris-Aligned Benchmark (PAB) regulation minimum requirements, including:
• 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 element invests in two bond funds managed by Northern Trust Asset Management, which track Solactive Global Bond ESG Climate indices. These are focused on a global investment grade bond universe that is screened for ESG scores and carbon emissions, including targeting a 50% reduction in corporate bond carbon intensity compared to the parent index.
The range includes five portfolios, ranging from 100% equity to 20% equity allocations, with each portfolio invested across a range of regional equity funds and/or two fixed income funds. Risk in the SRI bond element is reduced by blending the two fixed income funds to target a shorter duration than the wider market.
ebi’s investment product manager, Jonathan Griffiths, said: “We know that investors seek to invest in line with their values, while also seeking competitively priced investment solutions. 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.”
ebi celebrated hitting the milestone of £2bn in assets under management (AUM) in June 2023, with AUM recently surpassing £2.5bn. ebi became part of Bristol-based platform Parmenion last year.
