The multi-asset range will typically invest in low-cost ETFs.

Invesco’s new Summit Responsible range of five global multi-asset funds aims to provide investors a cost-effective exposure to ESG considerations with specific risk levels. The funds’ assets will 100% be invested in line with certain ESG criteria. (WealthAdviser)

Invesco has developed a new “Responsible Asset Allocation” (RAA) framework for asset allocation for the new funds. The fund manager has also created customized ESG indices for the funds.

Invesco: Funds’ objectives

The funds have a three-fold mission. First, each fund must comply with specific risk parameters; second, all investments must meet ESG criteria; and lastly, growth of the assets over the long term by diversifying across various regions and asset classes.

Key characteristics of the funds would be:

• Simple, affordable, and comparable
• Use of ESG metrics using ‘industry standard’ MSCI ESG data
• Initial investments will follow the RAA and laid-down ESG criteria
• The portfolios would be reviewed regularly thereafter.

Responsible Asset Allocation

Clive Emery, Fund Manager, said: “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, commented: “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.

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