Schroders in new Sustainable Multi-Factor Launch


Stockholm (NordSIP) – Last week, Schroders announced the launch of a new Sustainable Multi-Factor Equity (SMFE) fund, a global equity strategy that integrates environmental, social and governance (ESG) analysis into a systematic investment approach.

The SMFE fund will aim to outperform the MSCI All Country World Index, while, in a cost effective way, integrating the firm’s expertise in multi-factor equity strategies.

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The SMFE fund is based on Schroders’ existing Global Multi-Factor Equity fund, which launched last year. Both strategies harness Schroders’ factor investment capabilities to provide exposure to proven return sources: quality, momentum, small-cap, value and low volatility. Additionally, the SMFE fund will feature an innovative approach to integrating sustainability into equity investing. At its core is Schroders’ new proprietary framework, SustainEx, which measures the positive and negative ESG impacts companies place on society and the environment. Furthermore, the SMFE fund will have less than half the carbon intensity of the index and exclude industries such as tobacco, weapons and gambling companies.

“The evidence is increasingly clear that savers want to boost their exposure to sustainable investments. Our SMFE fund aims to support investors on their retirement journey by delivering index-beating and sustainable returns thanks to the innovative SustainEx framework created by Schroders’ Sustainability team,” says Jessica Ground, Global Head of Stewardship.

“SMFE combines a scientific approach to ESG measurement with an equally scientific approach to factor investing. We aim to put the best thinking in both ESG and factor investing to work for our investors, both now and through a measured but continuous process of improvement in the future,” adds Ashley Lester, Head of Multi-Asset Research and Systematic Investments.

Picture from Pixabay

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Aviva Investors, the global asset management business of Aviva plc (‘Aviva’), has been awarded ‘A+’ and ‘A’ ratings by the United Nations Principles for Responsible Investment (PRI), the world’s leading proponent of responsible investing, as part of the organisation’s 2020 Assessment Reports for signatories.

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