Fund manager and financial provider Abrdn has launched five new index-based, sustainable funds of funds to expand its MyFolio fund range which has £16.5bn invested.

The MyFolio Sustainable Index range comprises five, risk-targeted multi-asset fund of funds and is closely aligned with the MyFolio Index range.

The new funds will have sustainability considerations built in, Abrdn says, and will invest in other sustainable funds.

The funds have a zero Annual Management Charge and an Ongoing Charge Figure of 0.3%.

Each of the MyFolio Sustainable Index funds aims to generate growth over the long term (5 years or more) and will be managed to a defined level of risk. 

Abrdn says the funds will invest in a way that seeks to account for long-term environmental and social risks and opportunities and to promote good corporate governance through investment in other funds.  

Justin Jones, senior investment manager, said: “The MyFolio Sustainable Index range lets customers access investments which aim to do more good and less harm, versus funds without an explicit sustainable mandate, whilst retaining all the benefits of MyFolio’s Strategic Asset Allocation and multi-asset portfolio construction approach, at a level of risk they are comfortable with and with a low cost which is capped.”

The funds will use a series of key screens and exclusions to select suitable investments. The range allocates capital to avoid companies whose business practices or the industry they are in are deemed to be “controversial.”

They will avoid companies which manufacture controversial weapons, as well as those which do not meet UN standard on human rights, labour, environment and anti-corruption. 

The range backs companies that treat “people and the planet well”, which means investing in funds seeking lower risks around people and planet or helping companies with lower scores to change direction, the firm says.

The MyFolio Sustainable Index increases the number of MyFolio ranges to seven.