SBI Mutual Fund becomes the first fund house to implement ESG framework

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June 11, 2018, Pune: SBI Mutual Fund, one of the leading mutual fund houses in the country, focused on long-term wealth creation for investors, becomes the first fund house in India to implement the ESG framework. Post this implementation, SBI Magnum Equity Fund has been re-positioned as SBI Magnum Equity ESG Fund, effective 16th May 2018.

ESG Framework is an approach to investment where environmental, social & governance (ESG) factors, in combination with financial considerations; guide the selection of portfolio and management of investments.

The total AAUM of SBI Magnum Equity ESG Fund stands at INR 2,116.32 crore as on May 31, 2018.

According to Ms Anuradha Rao, Managing Director & CEO, ‘’ESG compliance marries true values of our company keeping in mind the benefits to all its stakeholders. Hence, we decided to integrate this framework into our investment decision making process a few years ago. It was a challenge to implement the framework in India due to the lack of available data and disclosures to felicitate the evaluation of companies on ESG parameters. We are happy that our commitment made this possible’’

Explaining the investment philosophy and framework of the SBI Magnum Equity ESG Fund Mr. Navneet Munot, ED & CIO said, “Investment managers like us owe a fiduciary duty, first to investors and then to the larger community they operate in, which can probably be best served by not trying to maximise short term profitability, but by creating an environment which ensures optimum long term returns and growth. SBI MF has a comprehensive check list of over 50 parameters from across the Governance, Environmental & Social aspects of a particular company’s management of its affairs, with the emphasis being in that sequence’’

Mr. D.P Singh, ED & CMO said ‘’Our ‘ESG Framework’ helps us delve into a company’s management practices, culture and risk profile and helps us to question the management if the board’s decisions are harmful to the long-term shareholder.ESG themed portfolios are built for retail investors by avoiding investment in a list of restricted business segments’’

The fund objective is to provide investors with opportunities for long-term growth in capital through an active management of investments in a diversified basket of companies following Environmental, Social and Governance (ESG) criteria

It will be a Thematic ESG Fund, with Large Cap bias and benchmarking itself with Nifty ESG Index.

Mr Ruchit Mehta is the Fund Manager for SBI Magnum Equity ESG Fund.

About SBI Funds Management Private Limited, the asset management company of SBI Mutual Fund:

With over 30 years of rich experience in fund management, we at SBI Funds Management Private Limited bring forward our expertise by consistently delivering value to our investors. We have a strong and proud lineage that traces back to the State Bank of India (SBI) – India’s largest bank. We are a Joint Venture between SBI and AMUNDI (France), one of the world’s leading fund management companies. With a network of over 168 branches across India, we deliver value and nurture the trust of our vast and varied family of investors.

Excellence has no substitute. And to ensure excellence right from the first stage of product development to the post-investment stage, we are ably guided by our philosophy of ‘growth through innovation’ and our stable investment policies. This dedication is what helps our customers achieve their financial objectives.

SBI Mutual Fund manages an AAUM of over INR. 2,17,649 crores (excluding Domestic Fund of Funds) as on March 31, 2018.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully