Bloomberg has launched new green-tilted fixed income indices to increase weighting to green bonds in some of its flagship indices – the Global Aggregate, Treasury and Corporate Indices.
The indices incorporate research from Bloomberg’s ESG and fixed income data teams and offer investors an opportunity to increase exposure to sustainable products while maintaining similar characteristics of the parent benchmark.
The year-to-date return for the Bloomberg Global Aggregate 20% Green Bond Index is 0.75% above that of the parent benchmark, the Bloomberg Global Aggregate Index, showcasing the opportunity for additional returns for investors with an appetite for sustainability-focused investment.
The recent launch comprises the following indices including, but not limited to: Bloomberg Global Aggregate 20% Green Bond Index, Bloomberg Global Corporate 20% Green Bond Index, Bloomberg Global Treasury 20% Green Bond Index, Bloomberg Global Aggregate 3x Green Bond Tilted Index, Bloomberg Global Corporate 3x Green Bond Tilted Index and Bloomberg Global Treasury 3x Green Bond Tilted Index.
“Sales of green bonds have reached record highs this year, up more than 10% compared to volumes for the same period last year, while the broader sustainable debt market has soared past new heights to $7 trillion historically, and Bloomberg Indices has closely tracked this trend to provide investors with ways to introduce and benchmark this market to their portfolios,” said Jonathan Gardiner, product manager for sustainable indices, Bloomberg Index Services Limited.
Bloomberg has developed these new broader-based green “tilted” indices while also growing its suite of Global Aggregate Green, Social, and Sustainability Bond Indices to include more than 70 benchmarks, with comprehensive maturity and sector outs, including, but not limited to, corporates, treasury and government.
The indices can be customised to meet individual investor needs using additional fields such as business involvement exclusions, EU Taxonomy inputs, regulatory screens, custom sector weightings, and more.
A custom Bloomberg Euro Treasury Green Bond Tilted Index has been licensed to Amundi for launching a Ucits ETF in Europe, shared Bloomberg.
© 2023 funds europe
