Fund manager GAM said it would be one of the first managers with a strategy to target green and sustainability bonds issued by European financials.
The sustainable climate bond strategy will be managed by Atlanticomnium, an independent Geneva-based fund management company that has managed assets for GAM since 1985.
Saying the climate-change bond market was worth more than US$100 trillion, GAM said the strategy came about in recognition of the “pivotal role” banks will play in the carbon transition due to their corporate finance activities.
GAM said by June 30 this year, green bond issuance by European banks had reached $100 billion – about a third of that in the first half of 2021 alone.
Atlanticomnium has a proprietary green bond assessment framework and engages with issuers, both to enhance analysis and to encourage improving standards.
The strategy has an average rating of BBB+. It is classified as Article 9 under the EU’s sustainable finance criteria known in the industry as SFDR. Investors will receive an annual impact report, outlining quantitative positive environmental benefits of their investment.
GAM has also joined the Climate Bonds Initiative, whose CEO Sean Kidney, said: “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.”
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