ESG Fund Factsheet

For adviser use only

Abrdn ASI MyFolio Sustainable

Classification: Sustainable
Management style: Blend

Introduction

ASI MyFolio Sustainable fund range consists of 5 blended risk targeted strategies which give customers access to investments which do more good and less harm.  Investments are selected in accordance with the ASI Sustainable Investment Policy.

Name Launch Date IA Sector Portfolio OCF* Fund Size (m)
ASI MyFolio Sustainable I 30/9/2020 Volatility Mgd 0.65% £2.2
ASI MyFolio Sustainable II 30/9/2020 Volatility Mgd 0.65% £3.7
ASI MyFolio Sustainable III 30/9/2020 Volatility Mgd 0.65% £6.9
ASI MyFolio Sustainable IV 30/9/2020 Volatility Mgd 0.65% £6.1
ASI MyFolio Sustainable V 30/9/2020 Volatility Mgd 0.65% £3.1

About Abrdn

Abrdn is a global investor.  By harnessing the power of investment they are dedicated to creating more opportunity for clients, and more positive impact for the world around us.

They use their worldwide investment experience and local market resources to seek out investment opportunity globally.  Through active investment, stewardship and innovation, they aim to deliver the most sustainable and future-fit investment solutions to help every client achieve more with their capital.

Assets under management*

£22m

Total Assets in Sustainable Range

*As at 30/06/2022

ESG Process

The ESG approach is built around 4 main pillars:

1.Avoid harm: using exclusions (controversial activities and violations of the UK Compact principles).  ASI carry out due diligence on the screening activities of their selected managers.  ASI then monitor all of the underlying holdings on a monthly basis to ensure there is no exposure to ASI’s excluded activities.

2.Back better companies: using sustainable funds investing in companies with higher ESG scores and lower carbon emissions.

3.Contribute to solutions: using impact funds.  Impact funds will comprise 10 to 30% of the portfolio.  Funds used in this proportion should be able to provide quantitative evidence of the impact delivered by their investments and must provide sufficient impact reporting for ASI to adequately assess their impact outcomes.

4.Develop and improve: checking governance and engagement. ASI regularly monitor and assess each funds’ engagement activities.

Exclusion Policies

ASI MyFolio Sustainable seek to avoid companies which manufacture or sell controversial weapons and/or derive more than 5% of their turnover from:

Tobacco products Thermal coal mining
Thermal power production Controversial weapons
Companies in violation of the UN’s Global Compact Principles regarding human rights, labour, the environment and anti-corruption.

Key Themes

ASI Sustainable range key themes include:

  • Climate Change
  • Human Rights
  • Paris Alignment

Cost

The OCF for this fund is 0.65%, which is very competitive* for a blended multi-asset fund which integrates ESG considerations into the investment process.

*based on a comparison of the average cost of a range of select multi asset blended ESG funds

Investment Performance

The fund range performance is measured against a composite benchmark made up of the MSCI AC World Index and the SONIA index in various proportions depending upon the risk profile of the fund.

The funds hit their 2 year anniversary in August 2022, so only short term performance is available.  Across 1mth, 6mth, YTD and 1 year cumulative performance, all 5 funds in the range are underperforming the benchmark.

Performance was measured up to 30th June 2022.

Past performance is not a reliable indicator of future performance.

Platform availability

The ASI MyFolio Sustainable funds are available on the following platforms:

Abrdn Wrap AJ Bell
Abrdn Elevate Allfunds
Embark Aegon
Aviva Hubwise
Quilter

Risk tools

The ASI MyFolio Sustainable funds are mapped to the following risk tools:

  • Dynamic Planner
  • Defaqto
  • Finametrica
  • Synaptic

Supporting documents

Tenet Opinion

ASI Myfolio Sustainable is the latest addition to the popular MyFolio range of risk targeted funds.  The portfolios use the same Myfolio strategic asset allocation process driven by Moody’s Economic Scenario Generator data.  This is overseen by the well-resourced and experienced MyFolio Strategic Asset Allocation Committee.

As a more recently launched proposition within the MyFolio range, there is currently limited data available to assess the performance versus the other MyFolio ranges.  The funds are also small in terms of assets under management.

The portfolios are a blend of active and passive funds.  The primary focus is on sustainable investing, although there is some exposure to impact within the portfolios.  They may therefore appeal to investors who are interested in a proportion of their portfolio contributing to measurable positive change, whilst generating financial returns aligned to a defined risk profile.

Information approved for Professional Adviser use only and should not be relied upon by private investors (this is not for Retail Clients).