PIMCO, the US bond fund manager of Allianz, has unveiled a new global investment platform focused on environmental, social, governance (ESG) factors.
The fund manager also launched an ethical debt investment fund for investors in Europe, the Middle East and Africa (EMEA), which will be the first product on the new platform.
The new vehicle, known as the GIS Global Bond ESG fund, will invest in several sovereign and investment grade corporate bonds from across the globe.
It will aim to maximise total return as well as favour issuers with strong ESG practices.
PIMCO said it had also enhanced two socially responsible funds in the United States to incorporate a wider range of ESG considerations.
The fund will be managed by a team headed by managing director and CIO of global fixed income Andrew Balls, and portfolio manager co-heading the firm’s ESG initiative Alex Struc.
“For many investors, screening out undesirable investment categories isn’t enough anymore; they want to use their investments to promote change in the world. Our ESG platform provides the tools to do that without compromising on returns,” Balls stated.
In addition, PIMCO also enhanced two socially responsible funds in the US to include a wider range of ESG considerations.