Nikko Asset Management is expanding its global green bond capability to include a wider investment universe of Sovereign, Supranational and Agency (SSA) green bonds.
The Luxembourg-domiciled Nikko AM Global Green Bond UCITS Fund (the Fund) provides investors access to green bonds through a diversified and actively managed portfolio. The new mandate of the Fund enables the London-based global fixed income team to invest across a wider universe of predominantly AAA rated SSA-issued green bonds. SSA-issued bonds offer one of the highest levels of “green purity” with a focus on climate change mitigation.
Global Head of Fixed Income Andre Severino (pictured), says: “Nikko AM is a pioneer in the green bond investment space, and the green bond market is experiencing record growth – Moody’s Investors Service projects green bond issuance to grow to between USD175-USD200 billion in 2018, surpassing the 2017 record of USD155 billion.”
“The team actively invests in green bonds across both developed and emerging markets, and we believe this best positions us to deliver sustainable alpha for our clients while also contributing to the preservation of the environment. The investment focus is on sovereign agencies that provide the leading standard of reporting and project selection.”