Nikko AM expands universe for green bond fund
S&P Global has projected that that GSSSB bond issuance in 2023 will be between $900bn and $1trn, or 14% to 16% of total bond issuance.
The Nikko AM Global Green Bond UCITS fund, which launched in February 2010, now has the capability to invest in green bonds from corporate issuers, as well as wider green social, sustainable and sustainability-linked bonds (GSSSBs).
This expansion of the investment universe «increases impact opportunities across biodiversity and climate change», the firm said.
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With the new mandate, the firm's global green bond team will be able to target bonds contributing the to UN Sustainable Development Goals, in particular Goal 7, Affordable and Clean Energy, Goal 11, Sustainable Cities and Communities, and Goal 13, Climate Action, it added.
The fund has returned -1.2% over the last five years, compared to a Morningstar Global Flexible Bond average of -2.2%, according to data from Morningstar Direct.
S&P Global has projected that GSSSB bond issuance in 2023 will be between $900bn and $1trn, or 14% to 16% of total bond issuance.
Total cumulative issuance of GSSSB passed the $4trn mark in June 2023, less than one year after surpassing $3trn.
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«Nikko AM is a pioneer in the green bond investment space, having launched one of the world's first green bond funds in 2010,» said Andre Severino, head of global fixed income at the firm.
«It is exciting to participate directly in addressing two environmental megatrends: climate change and loss of biodiversity. The proceeds from the bonds we hold will directly fund projects that promote nature and support positive climate change solutions.»
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