Investment firms Lyxor and Bridgewater are introducing multi-asset funds focused on sustainability.
The financial industry has seen a new addition with the launch of the Lyxor/Bridgewater All Weather Sustainability Fund. This innovative product, the result of a 15-year collaboration between Lyxor Asset Management and Bridgewater Associates, aims to incorporate sustainability factors into the well-known All Weather investment strategy.
The fund is designed to perform in all market conditions while maintaining a focus on sustainability. It typically integrates Environmental, Social, Governance (ESG) criteria and aligns its investments with sustainability goals, often referencing frameworks such as the United Nations' Sustainable Development Goals (SDGs) to ensure the portfolio supports the reduction of environmental impact and promotes social responsibility.
The asset allocation approach of the Lyxor/Bridgewater All Weather Sustainability Fund follows a risk-parity or risk-balanced philosophy, distributing investment across equities, bonds, commodities, and inflation-linked assets to maintain stable performance. However, it is adjusted to include sustainable investment filters or targets.
While specific information about the fund's alignment with each UN SDG and its precise asset allocation methodology is not readily available in current search results, interested parties are encouraged to consult official fund documentation or Lyxor/Bridgewater's published materials for detailed, up-to-date information.
The fund's strategy also focuses on impact investing, where the direct effect of investments on the environment is considered alongside risk and return factors. Carsten Stendevad, Co-Head of Sustainable Investing at Bridgewater, expressed pleasure about leveraging the longstanding relationship with Lyxor to support investors in tackling challenges with their fundamental and systematic investment approach.
The Lyxor/Bridgewater All Weather Sustainability Fund complies with the European UCITS directive and is traded daily. Subscribers have received a confirmation email, and are asked to click the button inside the email to activate their subscription. Users are advised to check their spam folder if they don't receive the confirmation email.
This marks the first sustainable product resulting from the collaboration between the two firms, signalling a commitment to sustainable investing in their joint projects. Bridgewater's "All Weather" asset allocation approach is used to construct the fund's portfolio, ensuring a robust foundation for its sustainable investment strategy.
- The Lyxor/Bridgewater All Weather Sustainability Fund, a new addition to the financial industry, combines business strategies by integrating sustainability factors into the traditional All Weather investment approach, which is typically found in the realm of finance and investing.
- To ensure the fund's focus on sustainability while maintaining its competitive edge in all market conditions, the fund utilizes Environmental, Social, and Governance (ESG) criteria, often aligning investments with the United Nations' Sustainable Development Goals (SDGs), a typical approach in the business of sustainable investing.
