Pictet AM launches new global government bond fund focused on climate change

Pictet Asset Management announces the launch of the Pictet-Climate Government Bond Fund, which integrates climate change as the most pressing ESG component of government policies into the government bond investment landscape. The Luxembourg-domiciled UCITS-compliant government bond fund uses each country’s carbon strategy for its investments in developed and emerging markets. The fund qualifies as an Article 9 fund under the SFDR guidelines and is supported by an advisory board of climate experts.

The Pictet-Climate Government Bond Fund is aimed at institutional investors and financial intermediaries looking for a global fund with the risk/reward profile of government bonds and a reduced carbon footprint. This is achieved by allocating capital to countries whose carbon emissions are falling the fastest, both in absolute terms and as measured by their economic output. This focus could result in countries that are currently important constituents of traditional bond indices being de-considered, providing additional diversification benefits for investors.

In order to achieve the best possible investment results, the CO2 emissions from an investable universe of signatory countries to the Paris Agreement are analyzed, as these are the largest contributors to global warming of all greenhouse gases. In addition, an external advisory board of climate experts will be consulted to assess the measures and developments to combat climate change in the selected countries.

While some emerging economies may be among the biggest polluters in relative terms, they can also make an important contribution to solving the climate crisis, as they are often the most vulnerable to the effects of extreme weather events.

Accordingly, the strategy favors those industrialized and emerging countries that show a positive trend towards reducing their carbon emissions.

Ella Hoxha, Senior Investment Manager at Pictet Asset Management and manager of the fund, said: “Bond investors play an essential role in providing the capital needed to mitigate climate change. While each individual can hardly influence government policy, together we can actually make a difference.”

“Our strategy,” Hoxha continued, “favors issuers that address climate issues while penalizing those that are less committed. Accordingly, our portfolio will have a different allocation than common world bond indices and thus offer investors a more diversified portfolio with a lower carbon footprint. There are only a few comparable funds available to investors today.”

Leading academics on the subject of climate change sit on the advisory board of the fund: Professor Michael Köhl, Head of the Institute for World Forestry at the University of Hamburg and Professor of Forestry. dr Joeri Rogelj, PHD, Research Associate and Associate Professor of Climate Change and Environment at Imperial College London’s Grantham Institute. Professor Vaclav Smil, PHD, Distinguished Professor Emeritus, University of Manitoba (Winnipeg) – Faculty of Environment, Fellow of the Royal Society of Canada (Science Academy) and Member of the Order of Canada.

The fund is a Luxembourg investment company with variable capital (SICAV) and authorized for distribution in the following countries: Belgium, Germany, Finland, France, Greece, Italy, Liechtenstein, Netherlands, Austria, Portugal, Sweden, Singapore, Spain and United Kingdom.

Past performance results do not allow any conclusions to be drawn about the future development of an investment fund or security. The value of, and income from, an investment in funds or securities may go down as well as up. Investors may only be paid out less than the invested capital. Currency fluctuations may affect the investment. Please note the regulations for advertising and offering shares in InvFG 2011 §128 ff. The information on does not represent any recommendations for the purchase, sale or holding of securities, funds or other assets. The information on the AG website has been carefully prepared. Nevertheless, there may be inadvertently erroneous representations. A liability or guarantee for the topicality, correctness and completeness of the information provided can therefore not be assumed. The same applies to all other websites referred to via hyperlinks. AG disclaims any liability for direct, specific or other damages that arise in connection with the information offered or other available information. The NewsCenter is a paid special form of advertising from AG for asset management companies. Copyright and sole responsibility for the content lies with the asset management company as the user of the NewsCenter special form of advertising. All newscenter notifications are press releases or marketing communications.



Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

On Key

Related Posts