Investment management firm Pimco Australia has launched a bond fund with a focus on environmental, social, and governance (ESG) issues through a newly-created investment platform.
The Pimco ESG Global Bond Fund aims to generate returns while also “making a positive social impact” by excluding companies which do not meet certain ESG requirements and encourages the companies it invests in to improve their existing ESG processes.
“The fund, which marks Pimco’s first dedicated ESG fund offered to Australian clients, has been launched to meet demand from clients looking to incorporate responsible and social considerations in fixed interest investing,” the company said.
The fund will be benchmarked against a traditional global bond benchmark, Pimco said, and “aims not to compromise on investment returns to achieve social objectives”.
Pimco managing director and chief investment officer of global fixed income, Andrew Balls, who also leads the team managing the ESG Global Bond Fund, said the fund would allow investors to support social change.
“For many investors, screening out undesirable investment categories isn’t enough anymore; they want to use their investments to promote change in the world,” he said.
“Our ESG Fund provides the tools to do that without compromising on returns.”
The introduction of the fund to the Australian market is part of the launch of the company’s global dedicated ESG investment platform, Pimco said.