Funds manager Allianz Global Investors (AllianzGI) has unveiled two bond and fixed income funds focused on sustainable investing in emerging markets.
Part of the firm’s emerging market debt strategy (EMD) range, both funds will be open to retail and institutional clients and will include environmental, social and governance (ESG) factors.
“It is now more relevant than ever that ESG risk is at the forefront of investors’ minds,” said Irshaad Ahmad, head of institutional Europe.
Managed by Richard House, chief investment officer of emerging market debt, the Allianz Emerging Markets SRI Bond and Allianz Emerging Markets SRI Corporate Bond funds are the first of their kind for the firm.
“ESG considerations are a key contributing factor to our overall sovereign investment process. Such factors have helped us to formulate clear country views and generate alpha across portfolios,” House said.
According to House, by creating ESG indexes “for emerging market debt that excludes issuers based on ESG factors, more investors will integrate such considerations into their investment decisions”.
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