Columbia Threadneedle European Social Bond Fund granted ESG Label by LuxFlag
Columbia Threadneedle European Social Bond Fund granted ESG Label by LuxFlag
Columbia Threadneedle Investments is proud to announce that its Threadneedle (Lux) European Social Bond Fund (the “Fund”), launched in May 2017, has been granted the ESG Label from the Luxembourg Finance Labelling Agency (LuxFLAG).
Columbia Threadneedle Investments is proud to announce that its Threadneedle (Lux) European Social Bond Fund (the “Fund”), launched in May 2017, has been granted the ESG Label from the Luxembourg Finance Labelling Agency (LuxFLAG).
LuxFLAG is an independent, non-profit making association created in Luxembourg in July 2006. The agency aims to support the financing of sustainable development by providing clarity for investors through auditing and awarding a recognisable label to eligible investment vehicles.
The ESG label provides recognition that eligible funds incorporate ESG (Environmental, Social, Governance) considerations throughout their entire investment process.
“The LuxFLAG ESG Label is recognized for its high standards and rigorous assessment of a funds’ investment policies, ESG integration in investment processes and exclusionary criteria. Threadneedle (Lux) European Social Bond Fund is a bond fund with an innovative social focus that unlocks the full potential of corporate bonds to deliver both financial and social returns. We are pleased to announce that the Threadneedle (Lux) European Social Bond Fund complies with the eligibility criteria of the label and therefore has been granted the use of the LuxFLAG ESG Label for a period starting on 01 October 2018 and ending on 30 September 2019," said Sachin S. Vankalas, Director of Operations and Sustainability at LuxFLAG.
The Fund, the first of its kind in Europe, aims to deliver both a financial and a social return by investing in corporate bonds across Europe with a clear focus on supporting positive outcomes for individuals, communities and society as a whole. To achieve positive outcomes, the Fund takes an evidence-based approach according to a defined social outcome framework, covering social areas such as affordable housing, health, education and employment.
The Fund invests in bonds issued by companies, supranationals, and charities that engage in socially beneficial activities and development. Investments are assessed by the fund manager using a dynamic social rating methodology, and the positive impact of each investments is assessed in collaboration with social partner INCO.
Simon Bond, portfolio manager of the Fund with 27 years’ experience investing in credit maturities, said: “The European social bond fund is the first daily liquid, regulated, socially beneficial bond fund in Europe. We believe you should expect a return for the risk you are taking whilst targeting social outcomes through a liquid conventional asset class. The market is providing an increasing number of opportunities, whether from agencies such as Council of Europe’s Social Inclusion bond (financing micro, small and medium enterprises, education and environmental protection) or from corporates such as Danone (with a social bond funding innovation in advanced medical nutrition). Our approach has won a significant number of industry awards in the UK and we are pleased that the European version is now being recognized as a trusted and credible way of achieving positive outcomes without sacrificing financial returns.”
In addition to the LuxFLAG ESG Label, the Threadneedle (Lux) European Social Bond Fund also received an award for Innovation at the European Pensions Awards earlier this year.