The world’s largest bond fund manager, Pimco, has launched an exchange traded fund (ETF) that aims to generate returns from issuers with high quality environmental, social and governance credentials.
The Pimco Enhanced Short Maturity Active ESG ETF was launched on Thursday and will invest in high quality money market instruments and short-term fixed income securities. The launch follows the success of its sister fund without the ESG focus.
Four investment specialists will manage the fund: Jerome Schneider, MD, head of Short-Term Portfolio Management, Jelle Brons, EVP, portfolio manager, Andrew Wittkop, EVP, portfolio manager, and Nathan Chiaverini, SVP, portfolio manager.
“Sustainable investing is becoming a priority for many investors who seek positive returns alongside the ability to drive positive change,” said Jerome Schneider.
“This active ETF is designed to provide capital preservation, daily liquidity and attractive return potential to investors who seek to invest in companies with best-in-class ESG practices.”
In a media statement, the company said that the newly launched fund blends Pimco’s active fixed income management with its in-house ESG investment framework, which favours issuers with “robust environmentally conscious practices, strong corporate governance and industry-leading social policies.”
Pimco launched its first socially responsible fixed income fund in 1991. The new fund will complement the company’s dedicated ESG platform which the company says has been launched to meet investor demand for ESG solutions.
Launched in 1971, Pimco now employs more than 2,500 staff around the world. The company is owned by Allianz Global Investors.