Mirova, a Natixis’ boutique specialised in responsible investment, has launched the Mirova Green Bond-Global fund.
The fund is managed by Christopher Wigley who is backed by Mirova’s responsible investment research team.
The Mirova Green Bond–Global fund implements active conviction management, with security selection as the primary driver of performance.
Financial and extra-financial views are combined in order to determine the bond’s financial attraction (specific analysis of each project financed, ESG analysis of the issuer, and fundamental analysis).
Mirova’s product invests mainly in global fixed-income securities. “These investments are especially sensitive to changes in interest rates, and the fund could lose value if interest rates increase,” the firm pointed out.
Mirova spotted that the green bonds market has grown significantly over the past few years. According to its figures, total annual issuance rose from $5 bn (€4.4bn) in 2011 to $40bn (€35.5bn) in 2014.
The boutique also assessed that the universe has diversified in terms of issuers and ratings, geographies, sectors and types of projects financed.
Wigley said : “By financing tangible assets, green bonds meet direct and concrete needs: issuers can diversify their investor base, and investors can actively participate in financing the energy transition.
“Due to a rigorous analysis of the financial and extra-financial aspects of each security, Mirova Green Bond-Global seeks to offer investors a diversified portfolio with an attractive yield.”
Mirova, which has participated in the first issuance of green bonds in 2012, has currently €5.2bn in assets under management.