A news release said the new mandate for the Portfolio Director fixed and variable annuity would include socially responsible equity opportunities around the world.
According to the company, the newly named Global Social Awareness Fund provides clients with the opportunity to align their investment decisions with personal values and beliefs.The announcement said it is one of four socially responsible funds VALIC offers in its variable annuity products.
VALIC’s newly expanded global fund will invest in the stocks of primarily large capitalization companies located in developed markets worldwide that meet social criteria established by the fund, according to the company.
This means screening out investment in companies that substantially engage in the manufacture or marketing of alcohol, tobacco, gambling, civilian firearms, military weapons or nuclear power. It will also avoid companies that have poor records concerning employee safety, environmental performance and labor relations, the company said.
The fund’s primary investment goal is long-term capital appreciation. Its performance benchmark is the Morgan Stanley Capital International (MSCI) World Index.The Global Social Awareness Fund, as well as its domestic counterpart, the Socially Responsible Fund, are subadvised by AIG Investments.
“AIG VALIC clients who want to participate in both the U.S. and foreign equity markets – while aligning their social beliefs with their investments – now have the opportunity to do so through this unique fund option,” said Bruce R. Abrams, President and CEO of VALIC and the VALIC Retirement Services Company, in the news release.