State Street launches fund to invest in green bonds

Solar_panelsState Street Global Advisors is launching a fund that will invest in “green” bonds, which are issued by institutions such as the World Bank to raise money for environmentally beneficial projects. State Street says the market of green bonds issued by supranational or multilateral development banks has grown from $1 billion to $5 billion in the last two years. The fund will primarily invest in bonds issued by these players, which are of high credit quality and are backed by stable institutions with large balance sheets. The firm said projects financing by green bonds generally aim to mitigate climate change or adapt to its effects. “Investment managers are being asked more frequently by their clients to consider sustainability and environmental factors in their approach to the market,” said Chris McKnett, head of environment, social and governance (ESG) investing at SSGA, who said the decision to launch the fund was driven by market demand. ©2011 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.