Global asset management group Columbia Threadneedle Investments has expanded its responsible investment portfolio by introducing the CT (Lux) global social bond fund, announced the outfit in a press statement on Tuesday 5 December. European investors now have access to this fund, which adheres to article 9 of the EU’s sustainable finance disclosure regulation, ensuring compliance with responsible investment standards.
Managed by Tammie Tang, the Luxembourg-domiciled CT (Lux) global social bond fund aims to utilise the bond market to achieve positive social outcomes worldwide. The fund’s management is backed by a team of credit analysts, a responsible investment team of over 40 members, and a social advisory panel. The fund will capitalise on the current global labelled bond universe, which now exceeds $4trn, stated Columbia Threadneedle.
The fund will employ Columbia Threadneedle’s proprietary rating methodology to assess bonds based on their social intentionality and intensity. Targeting over 8,000 bonds across seven key social development fields, the fund aims to generate both social and financial returns, aligning its outcomes with the 169 targets of the 17 UN sustainable development goals.
Tang emphasised the fund’s commitment to social impact investing in the announcement. She highlighted the fund's strategy of selecting bonds with positive social outcomes as opposed to conventional negative screening methods.
Michaela Collet Jackson, head of distribution, EMEA, remarked, “Following increased client demand for both our UK and European social bond strategies, working with clients we believe the time is right to expand our range to include a global strategy. We are excited to offer clients this new offering, which provides access to our tried and tested model of achieving financial returns and positive social impact, now using the global universe of socially labelled bonds. Initially available as an OEIC for UK investors, we are pleased to make this strategy available to European investors through this Sicav launch.”