News in brief - 15 January 2021

Aberdeen Standard Investments (ASI) has launched a new Dynamic Multi Asset Income Fund.

The aim of the new fund is to generate a 5.5 per cent annual yield while preserving the original capital over a rolling five-year period. It will focus on the income derived per unit of risk taken, targeting a reliable and attractive level of income that many investors require. It will invest in three core asset classes – global credit, global equities and emerging market debt – to achieve a high level of diversification. ASI head of dynamic multi asset, Scott Smith, said: “The new income fund brings together the full range of tools from our multi-asset team to offer a new approach to an old problem. By focusing on the income generation in the fund per unit of risk taken, we believe we can offer investors an exciting new way of targeting an attractive level of income with a good degree of reliability.”

Marsh & McLennan has pledged to be carbon neutral in 2021 and significantly reduce its carbon emissions over the next five years.

The professional services firm said it would seek to achieve the first of these objectives through the reduction of greenhouse gas emissions in its own operations and the purchase of verifiable offsets. Additionally, it will aim to reduce its carbon emissions by 15 per cent below 2019 levels by the year 2025, with the company planning to detail the specifics of these commitments in greater detail in an upcoming 2020 ESG report in March. Marsh & McLennan president and CEO, Dan Glaser, said: “We are committed to the principle of responsible capitalism. These climate initiatives represent a tangible step toward building a more sustainable environment for our colleagues, clients, shareholders and future generations.”

Tabula Investment Management Limited has launched the world’s first fixed income ETF aligned to the Paris Agreement.

The Tabula EUR IG Bond Paris-aligned Climate UCITS ETF offers exposure to Euro investment grade bonds from companies with 50 per cent lower greenhouse gas emissions when compared to the broad market, and an annual decarbonisation of at least 7 per cent. The ETF undertakes robust ESG screening, with bonds excluded from companies that have violated ‘social norms’, such as those selling controversial weapons and tobacco, and from companies that are deemed to cause significant environmental harm. Tabula added that it believed 2021 would see the environmental, social and governance criteria in funds shift from being one of many investment themes to being a key investment consideration in all investments, stating that changes in European legislation would institutionalise this.

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