Generali Investments launches first sub-fund investing in green and sustainable bonds
Generali Investments has launched the Generali Investments SICAV (GIS) Euro Green & Sustainable Bond, a new sub-fund investing primarily in green and sustainable bonds, which perfectly matches the company’s commitment to sustainability with its long-term fixed income investment expertise.
The sub-fund offers a liquid and transparent investment strategy in bonds that finance projects in, among others, energy transition and renewable energies, with a real positive impact on climate change.
It invests primarily in Investment Grade green and sustainable bonds denominated in Euro and features the Bloomberg MSCI Barclays Euro Green bond index as its main investment universe and official benchmark. The sub-fund is registered in Italy, France, Germany, Austria and Spain.
GIS Euro Green & Sustainable Bond benefits from an active investment approach combining top-down and bottom-up financial analysis, and leverages several areas of expertise:
• Proprietary Group Ethical Filter, to screen and identify potential ESG controversies affecting issuers
• Specific investment universe including green bonds meeting the “Green Bond Principles” based on the Bloomberg MSCI Barclays Euro Green bond index
• Additional ESG Risk Rating provided by Sustainalytics, to monitor issuers on ESG criteria in addition to their green bond issuances.
• Portfolio construction and bond selection carried out by in-house Euro Fixed Income specialists, based on internal Sovereign and Credit research inputs
The result of this rigorous selection process is a green and sustainable bond portfolio with high average rating and attractive geographical diversification.
Carlo Trabattoni, CEO of Generali Investments Partners S.p.A. Società di gestione del risparmio (investment manager of the sub-fund), commented: “Financial markets can be highly effective in moving capital to where it is needed and we aim to leverage on our expertise in managing more than EUR405 billion in Euro fixed-income assets to address sustainability issues. In this perspective, and in line with the Generali Group’s commitment, we are launching the new GIS Euro Green & Sustainable Bond, which we think might contribute to the key global priority of climate change mitigation.”
The green bond market is in continuous expansion, driven by an increasing demand, regulation and the adoption by many issuers and institutional investors. More than USD 250 billion in green and sustainable bonds were issued in 2019, with a diverse pool of issuers across sectors and various types of “green” financial instruments on the rise. The perspectives for 2020 are in the direction of further growth in terms of number of issuances, expected volumes and market players.