Invesco has launched the Invesco Summit Responsible Range – five risk-targeted global multi-asset funds, aiming to make responsible investing accessible to all. The fund-of-funds range is typically invested in low-cost ETFs, which offer an affordable investment solution for investors looking to incorporate Environmental, Social and Governance (ESG) considerations into their portfolios. The funds aim to invest 100 per cent of assets in investments meeting certain ESG criteria.
The Summit Responsible fund range is managed by multi-asset fund managers Clive Emery and Richard Batty, alongside deputy fund manager David Aujla. They will work in partnership with the Invesco Solutions team and be supported by the wider multi-asset, global ETF and ESG teams. The range will initially be available to all UK investors.
Invesco has also worked with index providers to create customised ESG indices for the Invesco funds selected for the range and has also pioneered a new framework of asset allocation, coining the term “Responsible Asset Allocation” (RAA), which forms the foundation for this new range of multi-asset funds.
The funds have three objectives: to grow the assets invested over the long term (five years plus) by investing across a variety of regions, asset classes; to invest 100 per cent in investments that meet certain ESG criteria; and for each fund to adhere to a specific risk level.
Invesco believes a growing number of investors are looking to invest responsibly, but with a variety of funds coming to market, their characteristics are often unclear. This range has been designed to be a simple, affordable and comparable proposition for all investors and the investment team will be using and reporting ESG metrics using ‘industry standard’ MSCI ESG data. At launch, each fund has a different allocation across a range of asset classes and geographies, including third-party funds, in line with our ESG criteria and in accordance with the RAA framework and the risk/return profile of each fund. The funds’ RAA will be reviewed regularly.
In addition to investors benefitting from the experience and expertise of asset allocation from Invesco’s multi-asset and solutions teams, another key component to the range is its approach to stewardship, decentralised proxy voting and ESG reporting.
Clive Emery, Fund Manager, says: “The multi-asset team believes responsible asset allocation is a key additional development to traditional multi-asset investing. Working with our in-house expertise across investment and ESG, we have been able to create the building blocks for this fund range, that enable broad access to financial markets, whilst also positively and substantively increasing their ESG credentials. By building portfolios using responsible asset allocation at the start of the construction process, we believe we are offering a different proposition for investors who are seeking assurance and clarity on where and how we are making those responsible investment decisions.”
Alexander Millar, Head of UK Distribution at Invesco, says: “We believe everyone should be able to make responsible investment decisions that don’t cost the earth. Through active management and our experience and resources across our investment, solutions, ETF and ESG teams, we are able to offer meaningful outcomes to suit a variety of client needs.
“ESG considerations have become an essential part of financial advice, and it’s important we help advisers by offering simple, affordable products that can match their clients’ ethical values as well as their investment goals.”