Banking

GAM launches European financials climate bond strategy

The GAM Sustainable Climate Bond fund will offer investors access to green and sustainability bonds providing positive environmental impact issued by firms within the European financial sector.

It will be managed by Geneva-based fund manager Atlanticomnium S.A. and will adopt an “active, bottom-up, high-conviction approach” to investing in bonds.

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The fund, which holds an average rating of BBB+, will target bonds which allocate proceeds to “eligible green project across market caps with measurable impact”, including renewable energy and green buildings.

It is categorised as Article 9 under the European Union’s Sustainable Finance Disclosure Regulation (SFDR) and investors will receive an annual impact report “outlining the associated quantitative positive environmental benefit of their investment”.

The total expense ratio (TER) of the fund will range from 0.35% to 0.55% dependant on share class.

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.”

Stephanie Maier, global head of sustainable and impact investment at GAM, added: “Asset and wealth managers control more than $110trn 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.”

GAM has also joined the Climate Bonds Initiative in order to help mobilise capital to advance the low-carbon transition.

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.”

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