Vontobel is expanding its suite of ESG bond funds with the addition of a green bond fund to meet growing investor demand for solutions that combine the goal of providing attractive income with a sustainable approach.
The Vontobel Fund – Green Bond invests across a global universe of green bonds, identifying issuers who use proceeds mainly for eligible environmental projects with a measurable impact in the transition to a low-carbon economy. The fund aims to maximize the contribution to climate change mitigation and environmental protection, while generating steady income over a full economic cycle. Under SFDR regulations the fund qualifies as an article 9 fund.
Supported by a team of more than 40 investment and ESG specialists, Portfolio Managers Daniel Karnaus and Anna Holzgang make high-conviction decisions based on in-depth analysis of credit quality, green bond projects, relative-value and macro factors. The Fund follows a disciplined investment process, whereby only a select number of green bonds are eligible for investment, resulting in a concentrated portfolio.
“Climate change is a real financial risk for investors, and green bonds provide an effective tool to address it,” says Daniel Karnaus, Portfolio Manager. “The fund’s impact is also measurable. For every 1 million euro invested in the fund, we estimate that we reduce carbon emissions equivalent to 492 t CO2 equivalent, or about 206 fewer passenger cars on the streets per annum.”
Vontobel has been offering fixed income solutions since 1988. Its Fixed Income Boutique manages CHF24 billion in client assets across Global Credit, Global Bonds, Emerging Markets and Flexible Strategies. The Fixed Income team consists of 41 investment professionals located in Zurich, New York and Hong Kong.