Global asset manager GAM Investments announced the launch of a new sustainable climate bond strategy targeting green and sustainability bonds with positive environmental impact issued by the European financials.
GAM also announced that it has joined the Climate Bonds Initiative (CBI), an investor-focused non-profit organization working to mobilize the bond market for climate change solutions, which is estimated to be over $100 trillion.
Sean Kidney, CEO, and Co-founder of the Climate Bonds Initiative, said:
“We are pleased to welcome GAM to the Climate Bonds Initiative. Banks are playing a critical role in directing capital to projects across the markets driving the green transition and development of solutions like this one are imperative to help enable a rapid shift to a low carbon and climate resilient economy.”
The new strategy, which is the second to be launched this year by the firm, will be managed by Geneva-based independent fund management company Atlanticomnium S.A, and it will adopt an active, bottom-up, high-conviction approach, investing in bonds that allocate proceeds to eligible green projects across market caps with measurable impacts, such as renewable energy and green buildings.
Gregoire Mivelaz, Fund Manager at Atlanticomnium, said:
“Climate change is one of the largest and most pressing risks for the global economy and banks have a pivotal role in driving the environmental transition, by supporting both large and small companies. We believe that our expertise investing in financials and a robust bottom-up approach to green bond selection are key to generating a positive environmental impact for our investors.”
GAM stated that in order to identify bonds that the investment team believes will deliver meaningful impact, the team applies its proprietary green bond assessment network that is split into three layers of analysis, including issuer, bond, and green asset levels. Each layer is assessed individually through proprietary research and data from external third parties. According to GAM, engagement is also a key part of the team’s framework, both to enhance their analysis and to encourage improving standards within each pillar.
The new strategy has an average rating of BBB+ and it is classified as Article 9 under SFDR. GAM stated that investors will receive an annual impact report, outlining the associated quantitative positive environmental benefit of their investment.
Stephanie Maier, Global Head of Sustainable and Impact Investment at GAM, said:
“Asset and wealth managers control more than USD 110 trillion of capital and how these assets are managed will be key to whether or not we are able to achieve the shared global goal of net zero emissions by 2050 or sooner. We firmly believe asset managers need to be at the forefront in driving that change, and designing solutions to help clients navigate the low carbon transition. The sustainable climate bond strategy is a compelling offering for investors seeking to generate both a meaningful environmental impact and attractive returns.”