Colonial First State has announced the launch of their new global fixed income offering, the Affirmative Global Bond Fund, following an agreement with Affirmative Investment Management (AIM).
The arrangement would bring the world’s first dedicated impact bond funds manager to retail investors in Australia, building on the growing demand for impact investing.
The new fund is a diversified investment-grade portfolio for medium to long-term investments, and the universe consists of issuers and issues that have passed an environmental, social and governance (ESG) impact screen.
General manager of distribution, Peter Chun, said the new fund reflected the growing demand for investment products that adopt meaningful and measurable sustainable practices.
“It enables our investors who wish to make a positive impact on society and the environment to mobilise their capital with a clear understanding of how their assets will be deployed, without compromising on risk or returns,” said Chun.
Chun said CFS’ new partners were “highly specialised” global investment managers that enabled exclusive access to a broader suite of funds.
Co-founder and managing partner of AIM, Stephen Fitzgerald, said responsible investment could be perceived as coming at cost, but AIM’s approach was to combine portfolio management and impact without compromising either.