A financial services company has come up with a new type of investment alternative for group variable annuity holders.
AIG VALIC, Houston, a unit of American International Group Inc., New York, says it believes its VALIC Company I Social Awareness Fund is the first socially screened global fund available in a variable annuity.
AIG VALIC is making the fund available within its Portfolio Director VA contract.
The new fund and a domestic version, the Socially Responsible Fund, are subadvised by one of AIG VALIC’s sister companies, AIG Investments.
The advisors’ goal is long-term capital appreciation.
The advisors will screen out investments in companies that “substantially engage” in the manufacture or marketing of alcohol, tobacco, gambling, civilian firearms, military weapons or nuclear power, AIG VALIC says.
The advisors also will avoid companies that have poor records concerning employee safety, environmental performance and labor relations, AIG VALIC says.