French asset manager Amundi has launched its first social bond strategy as part of its efforts to support the development of a new segment of sustainable fixed income.
The move comes when social bonds issuances have significantly surged this year indicating burgeoning green bond market. The proceeds from such bonds are used for financing projects which address social issues.
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According to the company, the solution will be among the few that are available on the market offering a high allocation to social bonds as well as a global investment scope.
The social bond strategy will be managed by Amundi’s Alpha Fixed Income team, which includes managers with experience in overseeing global and European bond investments.
The strategy will allocate a minimum of 75% to social bonds aligned with the International Capital Markets Association’s Social Bond Principles (SBP).
Additionally, Amundi plans to include regular bonds issued by sovereigns and corporates to expand the investment universe.
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By GlobalDataAmundi Fixed Income head Eric Brard said: “In the context of the current economic and health crisis, we believe that investors are increasingly looking for innovative solutions that can generate positive outcomes for society as a whole.
“As the fastest-growing segment of the sustainable fixed income market in 2020, Social Bonds are emerging as an appropriate financial instrument seeking to capture opportunities of financing projects with a social agenda without giving up on returns.”
