Danske Invest has launched a new European corporate bond fund which aims to identify bonds with a sustainable profile.
The fund will be managed by Andreas Dankel, head of Corporate Bonds at Dankse Invest, its targeted annual return is set at 1 to 1.5% after fees.
The selection of bonds to be included in the fund’s portfolio will consider both the creditworthiness as well as the sustainability of the business in question.
In contrast to so called Green bonds, which focus predominantly on CO2 emmissions, Dankse’s definition of sustainability also aims to include broader environmental and social factors.
At least 75% of the fund’s portfolio will consist of investment grade bonds, while up to 25% can be invested in high yield bonds.