PIMCO targets labelled and unlabelled green bonds with new fund launch

PIMCO, a fixed income investment firm, has launched the PIMCO GIS Climate Bond Fund, dedicated to investments linked to combating global climate change.  

The PIMCO GIS Climate Bond Fund invests in both labelled and unlabelled green bonds, as well as bonds from issuers demonstrating innovative approaches to environmental sustainability, offering investors an expanded opportunity set beyond traditional green bond exposures.  

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 minimise exposure to climate-related risk.    

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,” says 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 has been active in responsible investing for decades, launching one of the first socially responsible fixed income funds in 1991 and its first climate bond strategy last year in the US.

This new GIS fund provides European fund investors access to PIMCO’s climate bond strategy and complements PIMCO’s dedicated ESG platform, launched to meet investor demand for ESG focused investment solutions.