Allianz’s fixed income subsidiary Pimco has launched an ESG emerging markets bond fund which will invest in range of dollar-denominated bonds.
The fund gives investors access to Pimco’s emerging markets bond strategy and its proprietary ESG scoring framework and portfolio construction process.
The fund will invest in a broad range of dollar-denominated bonds issued by emerging market sovereign and quasi-sovereign entities, with tactical allocations to local currency instruments.
Pimco has converted and renamed the previous Pimco GIS socially responsible emerging markets bond fund into the new emerging markets bond ESG fund. While the old SRI fund applied a pure exclusion list, the new Pimco GIS emerging markets bond ESG fund fully incorporates Pimco’s three pillar ESG approach of distinct exclusion, evaluation and engagement components to influence positive change.
Launched in 2010, the bond now has around $680 million in net assets.
The investment team uses PIMCO’s proprietary ESG score to construct a portfolio of emerging market instruments from issuers that have a greater focus on environmental, social and governance practices.
Mangers of the fund include Pimco executive vice president Yacov Arnopolin, senior vice president Javier Romo, and managing director and global head of the emerging markets portfolio management team Pramol Dhawan.
“Investor demand for emerging market strategies with an ESG orientation continues to grow,” Dhawan said.
“Combining our emerging markets expertise with our proprietary ESG approach is the next logical step in the evolution of our emerging markets ESG solutions.”