ESG Investor’s weekly round-up of news about funds designed to meet sustainable investing criteria, including HSBC AM, RLAM, LOIM, Algebris Investments and TLEI.
HSBC Asset Management has launched the HGIF Global Emerging Markets Corporate Sustainable Bond fund. Labelled as Article 9 under the EU’s Sustainable Finance Disclosure Regulation (SFDR), the fund is targeting fixed income and other similar securities issued by emerging markets-based companies that are contributing to the UN Sustainable Development Goals (SDGs). The strategy will incorporate sustainability objectives into its analysis and engagement efforts. Utilising a bottom-up investment process, individual issuers will be selected based on HSBC AM’s Sustainability Assessment, and companies will be divested from if they are unable to demonstrate measures that will improve the sustainability of its operations in line with its objectives. Finnish pension insurance company Varma has made an initial investment of US$50 million into the fund. Petri Ala-Härkönen, Varma’s Head of FICC, said: “The new fund invests in corporate bonds and takes careful consideration of the related sustainability aspects and therefore deepens the consideration of sustainability as part of our emerging market investments.”
UK-based Royal London Asset Management (RLAM) has established the SFDR Article 8-labelled RLAM Global Equity Transitions Fund, which will invest across global equity markets in companies contributing to the transition. Companies selected for the portfolio’s 40-60 holdings will be characterised by their ability to transition their own businesses over time to a more sustainable path or contribute to the transition of others and demonstrate a record of active engagement with shareholders. The firm is looking for companies targeting themes such as climate transition, natural capital preservation, health and wellbeing, and equality of opportunity, while also delivering strong financial returns. Rob Williams, RLAM’s Chief Distribution Officer, said: “By engaging with these businesses and aiding their transition, we believe we can facilitate meaningful contributions to a more sustainable world whilst also providing investors with opportunities to access highly attractive sources of return.”
Lombard Odier Investment Managers’ (LOIM) new LOIM Global Carbon Opportunity strategy aims to capture opportunities across carbon markets worldwide. It will target a long-biased approach with absolute return trades and active tail risk management to generate attractive risk-adjusted returns with a low correlation to traditional and alternative asset classes, with opportunities promoting net zero and nature-positive transition. Jean-Pascal Porcherot, LOIM’s Co-Head and Lombard Odier’s Managing Partner, said: “Sustainability is a core investment conviction and we believe that carbon markets will play a central role in accelerating the global economic transition towards a more sustainable future.”
Global asset manager Algebris Investments has launched the Algebris Sustainable World Fund. The Article 9 fund will target equity securities issued by listed companies that are positively contributing to the UN SDGs and have a low environmental footprint. Simone Ragazzi, Portfolio Manager, and Silvia Merler, Head of ESG & Policy Research, will oversee the fund, leading a team of three analysts. Merler said: “This strategy enables investors to access a wide opportunity set across several areas critical for sustainable development and builds on Algebris’ long-standing commitment to ESG investment.”
ThomasLloyd Energy Impact (TLEI) Trust, a UK-listed renewable energy investment trust managed by Swiss impact manager ThomasLloyd has expanded into Vietnam with its first solar energy acquisition. TLEI has made an initial US$30 million investment in Solar Electric Vietnam (SEV), which includes an agreement to acquire Viet Solar System Company Limited (VSS), a privately-owned company which holds a 6.12 megawatts peak (MWp) in rooftop solar assets. Of the US$30 million, US$4.6 million will be utilised to acquire VSS, with the remaining US$25.4 million deployed across additional opportunities in Vietnam. Michael Sieg, TLEI’s Group CEO, said: “This latest investment allows us to deliver our ‘triple return’ of providing attractive investment returns for investors by investing where capital makes a meaningful, measurable and significant impact and tackles climate change at source. We look forward to accelerating our pipeline momentum.” TLEI also intended to raise new equity capital “to progress its robust pipeline” of opportunities via its platforms in India, the Philippines and Vietnam.