Amundi has launched a new sub-fund combining diversified investment management with an ESG approach. It has been created to address key issues for investors such as the demand for more conservative portfolios in a period of market uncertainty, and the desire to benefit from the increasing value placed on ESG considerations in investments.

The asset manager hopes that Amundi Funds Multi-Asset Sustainable Future will utilise a multi-asset investment approach to provide sustainable returns with a conservative risk profile. Amundi will combine ESG factors with fundamental analysis to select companies and issuers it believes can generate returns in the long run. Once controversial issuers are excluded, and the fund managers then use their own convictions to form the basis of  the selection for fundamentally sound companies with a positive impact in line with Amundi’s ESG criteria.

This approach is based on Amundi’s track record managing an Austrian domiciled UCITS ethical balanced fund, launched in November 1986, that has been managed by the current management team for the past seven years. It also relies on research provided by Amundi’s ESG Analysis Team, who provide ratings for over 5,000 issuers, for the fund’s selection process.

The sub-fund will be managed by experienced portfolio managers from the balanced strategies team and will be lead by lead portfolio manager Joerg Moshuber and Enrico Bovalini, head of balanced strategies.

Mr Moshuber said: “We truly believe in the companies and issuers selected for the portfolio from a fundamental investment perspective and an ESG standpoint. We strive to ensure our investments are able to achieve sustainable returns while having a positive impact on the environment and society. The way we do this is by investing only in issuers that are truly committed to building a better future.”

Amundi is Europe’s largest asset manager with €1.487 trillion in AUM, including €297 billion in responsible investing