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.

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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

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In the midst of a global pandemic, Apple announced one of the corporate world’s most ambitious environmental blueprints – to reduce the climate impact of every Apple device to net zero by 2030. The plan involves cutting 75 per cent of the company’s existing carbon footprint, not only for its own business but also across the manufacturing supply chain and product life cycle.

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