Columbia Threadneedle launches latest social bond fund

Homeless_manColumbia Threadneedle Investments has launched a “social bond” fund, said to be the first of its kind in Europe.

The Threadneedle (Lux) European Social Bond product is launched in partnership with Inco, a global consortium for a “new, inclusive and sustainable economy”, and invests in corporate bonds.

It follows on from the firm’s 2013 launch of the UK Social Bond fund in partnership with Big Issue Invest, and a US Social Bond fund in 2015.

Both a financial and a social return are aimed at through investment in corporate bonds across Europe with a “clear focus on supporting positive outcomes for individuals, communities or society as a whole”.

Simon Bond, director of responsible investment portfolio management, is the fund’s manager, and said: “We are seeing a growing demand from clients to deploy their savings in a way that can generate social benefits and sustainable positive outcomes.”

Investors need not sacrifice performance to achieve social impact, he added.

“By actively selecting specific bonds with positive social outcomes, rather than excluding bonds through conventional negative screens, we aim to generate positive social and financial results.”

Out of 4,000 European corporate bonds in the market, the firm’s credit analysts have identified that about 45% that are social in nature across different sectors and countries.

The portfolio covers areas such as affordable housing, health, education and employment, and offers daily liquidity.

©2017 funds europe

Sponsored Profiles

SPONSORED FEATURE: Smarter than beta

Jun 14, 2017

‘Smart beta’ investing is rapidly becoming a popular alternative to both conventional passive management and traditional active management.

SPONSORED FEATURE: Smart beta: Unlocking key drivers of return

Jun 14, 2017

Manuela Sperandeo, iShares Head of Specialist Sales EMEA, tells Funds Europe how investors can leverage smart beta strategies to target numerous outcomes.

SPONSORED FEATURE: Minimum variance indices: Rewriting the rules

Jun 14, 2017

The FTSE Russell indices tracked by lyxor lead to fewer specific risks, fewer valuation and crowding issues and more consistent performance.

SPONSORED FEATURE: The reflationary environment

Jun 06, 2017

Funds Europe talks to Andreas Wosol about the implications of a return to reflation and why the value part of the European equity market could support investors in such an environment.

Executive Interviews

INTERVIEW: Finding managers that can (and do)

Apr 18, 2017

Fabrice Kremer, a fund selector at Banque de Luxembourg Investments, has berated fundamental managers for failing to beat indices, but he remains committed to active funds. He speaks to Nick...

JERSEY INTERVIEW: ‘A steady sort of place’

Mar 21, 2017

The chief executive of Jersey Finance is keen to portray the island as a stable, trustworthy jurisdiction. He talks to George Mitton.

Roundtables & Panels

TRENDING: Smart beta indices continue onward march

Jun 14, 2017

We asked five investment experts how smart beta indices have performed against cap-weighted indices over the past year and what the investment outlook suggests about the prospect for different investment factors.

SMART MONEY: Following the smart money

Jun 14, 2017

We asked six investment professionals about the emphasis they are placing on smart beta and active ETFs and how platforms are adopting these products.