Discretionary fund manager ebi Portfolios, and asset manager Amundi have launched the SRI portfolio range, a suite of low-cost model portfolios, 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 per cent 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 per cent, compared to the underlying investment universe;
A reduction in carbon intensity by 7 per cent 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 per cent reduction in corporate bond carbon intensity compared to the parent index.
The range includes five portfolios, ranging from 100 per cent equity to 20 per cent 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, CFA, says: “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, says: “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.”
