Ostrum Asset Management launches the first global bond fund devoted to the Just Transition
Ostrum Asset Management (Ostrum AM), an affiliate of Natixis Investment Managers, today announces the launch of Ostrum Global Sustainable Transition Bonds1, the first bond fund with a global investment universe devoted to the Just Transition. The fund is classified as Article 9 under SFDR2 and complies with requirements set by the French Greenfin3 accreditation. Available to all types of investors, the fund supports both institutional investors in enhancing their commitments as they align with their own CSR policies, and retail investors striving to bring greater meaning to their investment.
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Investing in the Just Transition
Governments and corporations must pursue a Just Transition to tackle today’s climate emergency and stage the transition to a low-carbon world in order to safeguard the environment and biodiversity and ensure inclusion for all of society across all countries and regions. Here at Ostrum AM, we are convinced that the financial industry has a key role to play in driving this transition and supporting these crucial changes. On the basis of this conviction and in our capacity as a European sustainability bond leader4, we are launching a new bond strategy devoted to the Just Transition.
Climate and social impact strategy
Ostrum Global Sustainable Transition Bonds is fully invested in global sustainable bonds. Both the issuers and the instruments we hold incorporate the Just Transition, with a threefold goal for our fund:
- Reduce the carbon footprint: fund renewable energies, green buildings, clean mobility, solutions to decarbonize industry, develop energy efficiency, etc.;
- Promote social impact: promote accessibility to basic infrastructure, healthcare, education and training, decent housing and financial services, etc.;
- Safeguard ecosystems and local economies: develop the local economic fabric, sustainably use resources, safeguard biodiversity.
Olivier Vietti, Portfolio Manager for the Ostrum Global Sustainable Transition Bonds fund says: “Incorporating the Just Transition into our investments helps us better assess risks, while also unlocking long-term value for our clients.”
Developing a proprietary Just Transition indicator
Our investment process for Ostrum Global Sustainable Transition Bonds is based on a proprietary methodology that analyzes securities and allocates them a score for projects funded and issuers. This score incorporates our new indicator – the Just Transition Indicator – which focuses in particular on issuers’ best practices on social aspects, as well as regional development.
Nathalie Beauvir-Rodes, Head of Sustainable Bond Analysis and Research adds: “With a holistic and inclusive approach to sustainable development, the Just Transition theme is an opportunity to select the best business projects that support the ecological transition from both environmental and social standpoints.”
1. View information below for more details on the fund i.e. fund risks, accreditation, fund manager, etc.
2. Article 9 funds under the SFDR classification have sustainable investment as their objective.
3. All instruments that we invest in must comply with the exclusions set out in the Greenfin accreditation across the entire fossil fuel value chain and the whole nuclear industry. Details are available on the French Ministry of Ecological Transition website (https://www.ecologie.gouv.fr/ in French only). The Greenfin accreditation was developed by the French Ministry of Ecological Transition: it guarantees the green aspect of investment funds and is designed for financial stakeholders that seek to support the common good via transparent and sustainable practices. The accreditation has the specific feature of excluding funds that invest in companies operating in the nuclear and fossil fuel sectors.
4. Source Ostrum AM at end-June 2022, Ostrum AM managed more than €23 billion in assets invested in sustainability bonds.
Fund risks: Risk of capital loss, interest rate risk, credit risk, emerging country risk, liquidity risk, counterparty risk, risk of overexposure, specific risks related to ABS and MBS, sustainability risk. For more details on the risks involved, please read the fund’s prospectus and the KIID available from the management company.
Refer to the fund prospectus and the key investor information document before making any final investment decisions. Ostrum Global Sustainable Transition Bonds is domiciled in France and approved as a UCITS fund by the French financial markets regulator, AMF. Natixis Investment Managers International is the management company and has delegated financial management to Ostrum AM.
The analyses and opinions contained in this document are the views of the author(s) mentioned. They are issued at the stated date, are liable to change and should not be interpreted as having any contractual value.
Any references to a ranking, award, accreditation and/or rating provide no guarantee of funds’ future performances.