Specialist investment manager Western Asset has launched a global corporate bond fund targeting carbon reduction.
The Western Asset Sustainable Global Corporate Bond Fund is classified as Article 8 under the EU’s Sustainable Finance Disclosure Regulation.
London-based Annabel Rudebeck, head of non-US credit, and Matt Jackson, portfolio manager, will manage the new fund. The pair are assisted by Californian-based Bonnie Wongtrakool and Ryan Brist, head of global investment-grade credit/portfolio manager.
Rudebeck, who leads Western Asset’s global credit team, said that the new fund uses Western Asset’s proprietary ESG framework and “seeks to meet minimum thresholds for carbon reduction SDG alignment and portfolio ESG ratings”.
She said: “Our emphasis in achieving a lower portfolio carbon intensity is on identifying issuers with whom we regularly engage and have credible and quantifiable targets, and those with plans for reducing carbon intensity and increasing the use of renewables.
“In addition, the fund prohibits investments in tobacco, civilian firearms, controversial weapons, nuclear weapons, thermal coal and issuers that do not uphold the principles outlined in the UN Global Compact.”
The fund, which is a sub-fund of the Dublin-domiciled Legg Mason Global Funds range, will be distributed across Europe, including in the UK, Germany, Switzerland, Austria, Greece and Cyprus.
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