The global asset manager has widened the investment universe for its green bonds strategy, as it expands capabilities in the asset class. The mandate for Nikko Asset Management’s global green bond strategy now allows it to invest in sovereign, supranational and agency (SSA) green bonds.
The strategy is run by a London-based team which oversees an actively managed and diversified portfolio of green bonds. Nikko AM global head of fixed income Andre Severino said the strategy invests in green bonds across developed and developing markets.
“We believe this best positions us to deliver sustainable alpha for our clients in a fixed income portfolio while also contributing to the preservation of the environment. The investment focus is on sovereign agencies that provide the leading standard of reporting and project selection,” Severino said.
The green bond market was worth US$372 billion as at 31 December 2017. New issuance in the green bond space was US$155 billion last year, according to Moody’s Investor Services. This year the market could touch US$200 billion in new issuance.
Nikko AM said the investment universe expansion announced today will give its clients greater access to this growing green bond market.
The Luxembourg-domiciled Nikko AM Global Green Bond UCITS Fund (the Fund) provides investors access to green bonds through a diversified and actively managed portfolio. The new mandate of the Fund enables the London-based global fixed income team to invest across a wider universe of predominantly AAA-rated SSA-issued green bonds. SSA-issued bonds offer one of the highest levels of “green purity” with a focus on climate change mitigation.
Source Financial Standard