UK pension scheme Nest has seeded a newly launched Wells Fargo climate-focused bond fund.
Wells Fargo Asset Management (WFAM) has launched the Climate Transition Global Investment Grade Credit strategy and said Nest, a government-created pension fund, had converted an existing $2 billion allocation with WFAM to the new strategy earlier this year.
Scott Smith, head of multi-sector investment grade, and Henrietta Pacquement, head of investment grade Europe, lead the fund.
The strategy combines meeting “typical financial objectives for active fixed income investing with a specific set of climate goals”, the firm said.
These goals include investing in firms that are best placed to manage the carbon transition to low or net zero, decarbonising portfolios by 2050, and engagement with issuers.
WFAM gained praise from Diandra Soobiah, head of responsible investment at Nest.
“The response of WFAM to our climate change policy has been excellent. Their strategy provides us with a robust and measurable framework to decarbonise over time and support the climate transition, helping us to align our portfolio with our net zero ambitions.”
Soobiah commended the firm for showing leadership in climate-related fixed income.
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