PIMCO Unveils Climate Bond Fund

    Stockholm (NordSIP) – As the green bond market breaks through the US$1 trillion threshold, interest in debt securities that contribute to the fight against climate change continues to increase. Most recently, PIMCO announced the launch of the PIMCO GIS Climate Bond Fund dedicated to combating global climate change, through both labelled and unlabeled green bonds.

    The fund can also invest in standard bonds issued by entities that display innovative approaches to environmental sustainability. The fund seeks optimal risk-adjusted returns and provides investors with a globally diversified, multi-sector bond portfolio that supports climate change solutions while seeking to minimize exposure to climate-related risk. According to the asset manager, this new fund provides European fund investors access to PIMCO’s climate bond strategy and complements PIMCO’s dedicated ESG platform.

    The fund will be managed by Scott Mather, Managing Director and Chief Investment Officer of US Core Strategies; Jelle Brons, Executive Vice President and Portfolio Manager; Ketish Pothalingam, Executive Vice President and Portfolio Manager; and Samuel Mary, Vice President and Portfolio Manager.

    “Client interest in sustainable investment strategies continues to grow strongly, and we’ve introduced this fund to provide investors with an accessible method of allocating capital to climate change initiatives,” said Scott Mather, Managing Director and PIMCO’s Chief Investment Officer of US Core Strategies.  “We are focused on identifying the increasing number of bond issuers committed to climate action and financing climate solution projects. Active management, combined with rigorous analysis by our credit analysts, will help us find the likely winners of the transition to a net-zero carbon economy.”

    PIMCO is one of the world’s premier fixed income investment managers, with over 45 years of experience and more than 2,500 employees managing US$ 1.93 trillion in assets. The asset manager launched its first socially responsible fixed-income funds in 1991 and its first climate bond strategy last year in the US. According to the Environmental Finance Green Bond Database, green, social, and sustainability bonds outstanding have a cumulative value of US$1.1 trillion.

    Image by Jody Davis from Pixabay

    Filipe Albuquerque
    Filipe Albuquerque
    Filipe is an economist with 8 years of experience in macroeconomic and financial analysis for the Economist Intelligence Unit, the UN World Institute for Development Economic Research, the Stockholm School of Economics and the School of Oriental and African Studies. Filipe holds a MSc in European Political Economy from the LSE and a MSc in Economics from the University of London, where he currently is a PhD candidate.

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