EdenTree Investment Management has launched the EdenTree Global Impact Bond (GIB) Fund which aims to generate positive societal impact by investing in a global set of impact-oriented fixed income instruments.
The fund’s philosophy is to drive capital towards issuers that make a net-positive impact. It will leverage public debt markets to help finance entities investing in projects that tangibly benefit the environment and societies.
EdenTree’s senior fund manager, David Katimbo-Mugwanya, and fund manager, Michael Sheehan – with a combined 15 years’ investment experience – will manage the fund. They will assess ESG-labelled debt, including sustainable bonds and non-labelled debt, with a view to integrating impact objectives with fundamental credit research.
The fund will be benchmarked against the iBoxx Global Green, Social, Sustainability Index (with GBP base currency).
Sheehan said: “There has been a shift in the mindset of the investment community and we are seeing unprecedented interest for investments that produce tangible, impactful outcomes.
“The current shortfall in sustainable financing poses a real threat to achieving the UN’s Sustainable Development Goals. We believe this fund has a role to play in addressing this deficit. The fund also aims to bridge the gap between traditional and philanthropic investing, where we seek to deliver financial returns whilst achieving positive impact.”
The asset manager has also launched the EdenTree Green Future Fund (GFF), investing globally in companies provide solutions to the world’s environmental challenges.
According to EdenTree, it will target companies with strong growth prospects and that aim to contribute positively to a green economy that will re-shape the global economy, shift social priorities and drive new and innovative business models.
GFF will be co-managed by EdenTree’s chief investment officer, Charlie Thomas, and fund manager, Tom Fitzgerald, who will take a long-term investment approach and develop a portfolio of between 40 and 60 companies. The aim is to provide investors with exposure to seven key themes running through the fund which will define the future economy: circular economy, future mobility alternative energy, water management energy efficiency, regenerative agriculture and environmental services
Thomas said: “The major shifts we are experiencing across the global economy now present an exciting opportunity for investors to positively influence the world we live in tomorrow.”
“Environmental and Sustainable investing has been my experience and passion for over 20 years. Launching the Green Future Fund is a natural extension, given the focus and expertise of EdenTree for nearly 35 years in responsible and sustainable investment. The fund is built on a genuine and authentic approach to sustainable investment principles which are a central to EdenTree.
“We believe that significant long-term investment opportunities are derived through allocating capital to the innovative companies that are addressing the world’s environmental challenge and this fund aims to identify those.”