CM-CIC Asset Management, the investment arm of French financial group Crédit Mutuel, has launched the CM-CIC Green Bonds fund on 8 June 2017, InvestmentEurope can reveal.
The management team will apply an extra-financial analysis to traditional financial analysis to select so-called green bonds.
According to fund literature, four criteria will be analysed regarding the structure of the green bond : the existence of a green project, the assessment and selection process of green projects, the management of the returns produced by the green bond and the frequency of reporting.
As for the issuer, it will be assessed through three pillars: ESG score, contribution to the environmental transition and management of the risk of ESG-related controversies.
A rating from 1 to 100 will be given to each company. The analysis of the bond will account for 70% of the rating while the remaining 30% will result from the analysis of the issuer.
The investment universe of the fund will only contain securities that have received a mark equaling and exceeding 50.
The CM-CIC Green Bonds fund will invest between 85% and 200% of its net assets in debt securities issued by countries, corporates and institutions globally with minimum exposure of 85% to green bonds.
The exposure to convertible bonds can go up 20% and that to equities is limited to a 10% cap. The fund cannot hold stocks in direct line.