Algebris Investments has launched a sustainable bond fund, aiming to give investors access to a wide range of opportunities across several areas which the firm says are “critical” to sustainable development.
After opening to investors 29 June, the Algebris Sustainable Bond Fund invests in fixed-income securities issued by “high-quality, resilient companies” across a range of geographies and sectors.
The Irish-domiciled fund is labelled Article 8 by the EU’s Sustainable Finance Disclosure Regulation, according to Algebris’ website, and has a management fee of 0.3%.
It will be managed by Gabriele Foà (pictured) and the remainder of the Algebris Global Credit team, adopting a bottom-up approach.
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Foà said: “The Algebris Sustainable Bond Fund adds to our existing global credit offering by providing a long-only, low-beta alternative to our flexible solutions in this space. Drawing on the expertise of both our global credit and ESG teams, the strategy will invest in high-quality companies which offer relatively high spread within the new fixed income environment.
“Our ESG framework, centred on issuer rather than security selection, together with our in-house credit expertise across sectors, means the portfolio is focused on companies with healthy business models and sound financial metrics.
“Our portfolio targets a 200-300 spread range for a solid set of issuers. This way, our credit selection process combines attractive risk-reward with sustainability.”
This article first appeared on Portfolio Adviser.
