Aberdeen launches Aberdeen Global - Responsible World Equity Fund

Aberdeen Asset Managers Limited announces the launch of the Aberdeen Global – Responsible World Equity Fund, a new sub-fund of Aberdeen Global, the Group’s Luxembourg-domiciled SICAV, in response to increasing demand for Socially Responsible Investment (SRI).

During premarketing the Group received seed capital investment for the Fund totalling $60 million.

The Fund, which is the third in the Group’s range to incorporate SRI strategies, will be managed by Aberdeen’s highly regarded Global Equity Team, led by Stephen Docherty. The 11-strong team manages over $1 billion in SRI segregated mandates and pooled funds, including the top performing, UK-domiciled Aberdeen Ethical World Fund.

The Fund will seek long-term return by investing primarily in an internationally diversified

portfolio of equities, selected using Aberdeen’s successful global equity investment process. The investment team will also employ an SRI overlay which takes into consideration the environmental, social and governance policies of potential investments.

The team will screen companies for involvement in the production and/or sale of alcohol, tobacco or pornographic products; gambling; military; and weapons. If a company’s turnover in any of these areas exceeds 10% (or 5% for pornography), it will automatically be excluded from the Fund’s investment universe.

The team will also use an ethical engagement overlay in three areas: corporate governance, the environment and labour/human rights, actively working to monitor the conduct of portfolio companies and engage with their management to seek high levels of performance in these areas.

The benefit of this process is that it is inclusive, not exclusive. As shareholders, Aberdeen can influence the behaviour of every company in the portfolio on behalf of its clients.

Michel Alofs, Head of Business Development, Europe ex UK at Aberdeen, said: " We see strong demand for top performing SRI and engagements funds in Europe. Not only are pension funds warm to the subject, but we have seen strong interest from private banks and family offices. With this new vehicle and the strong track record of our other SRI products, we think that Aberdeen is perfectly placed to meet our clients’ needs in this field."

Stephen Docherty, Head of Global Equities at Aberdeen, continued: “Investor interest in SRI is growing rapidly, particularly in products that incorporate both negative and positive screens. SRI screening strategies provide socially aware investors with the opportunity to have their investments reflect an ethical bias by avoiding investing in companies deemed inappropriate from an ethical perspective. Equally, through active engagement with selected companies, SRI investors have a greater voice in the wider business community and can help influence companies to be better corporate citizens. Furthermore, early fears that SRI strategies would impact performance have now been laid to rest given the proven track record of SRI funds over the long term.”