State Street launches ESG emerging market bond fund

The fund will begin with an initial investment of £39.6m

State Street Global Advisors has launched the Article 8 State Street Emerging Markets ESG Hard Currency Government Bond Index fund, which invests in emerging market government bonds.

The fund, which deals in USD-denominated bonds, began with an initial investment of $50m (£39.6m) and follows the J.P. Morgan ESG EMBI Global Diversified Index, which puts emphasis on issuers ranking higher on ESG criteria and removes or gives less emphasis to those ranking lower.

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State Street manages over $40bn in assets across its emerging market debt business as of the end of December.

Jennifer Taylor, head of emerging market debt, said: “We have seen continued growth in our EM debt business supported by our sophisticated investment process, resulting in consistent and reliable results delivered by our dedicated investment and trading teams.

“With the launch of this fund we aim to meet an increasing demand for Article 8 products in this growing market.”

As of the end of 2023, State Street holds $4.13trn assets under management.

This article first appeared on ESG Clarity’s sister title Portfolio Adviser.