Columbia Threadneedle’s European impact investing fund receives ESG label
Columbia Threadneedle Investments has announced that its Threadneedle (Lux) European Social Bond Fund has received the ESG label in recognition for its promotion of ESG 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 Threadneedle (Lux) European Social Bond fund was launched in May 2017 resulting from the partnership of Columbia Threadneedle Investments with global consortium Inco.
The launch followed that of the Threadneedle UK Social Bond fund in 2013 with Big Issue Invest, and its US Social Bond fund in 2015.
The Threadneedle (Lux) European Social Bond fund seeks both a financial and a social return by investing in corporate bonds across Europe. It focuses on supporting positive outcomes for individuals, communities or society as a whole.
Simon Bond, the fund’s portfolio manager 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).”
The Luxembourg Finance Labelling Agency (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.