Edinburgh-based fixed income manager Cameron Hume is to launch a new global bond fund for investors seeking to manage effectively the environmental, social and corporate governance (ESG) exposures of their fixed income investments.
The Cameron Hume Global Fixed Income ESG Fund (“the Fund”) will offer investors the potential to achieve active returns from a portfolio of bonds with higher average ESG ratings than their respective sectors.
The company has integrated ESG factors into its investment processes. The Fund is an actively managed, globally diversified portfolio of up to 400 fixed income securities from issuers who can demonstrate that ESG risks are appropriately managed.
The Fund aims to outperform the Bloomberg Barclays Global Aggregate Index.
The Fund – a UCITS (Undertakings for Collective Investment in Transferable Securities) vehicle domiciled in Dublin – was developed in response to a growing demand among investors for an ESG fixed income offering and will launch with assets of USD100M.
Co-founder and Chief Investment Officer Guy Cameron said: “ESG strategies are more well-established in equity investing, and investors are now looking to include ESG considerations in their allocations to fixed income strategies.”
He added: “This actively managed fund is designed to be part of a core allocation to global fixed income but will favour bonds issued by corporates with superior ESG ratings. So it is a “returns-based“ rather than a “values based” approach that offers asset owners the opportunity to make an immediate improvement in the management of ESG exposure for their fixed income allocation. The fund will be distinctive in that we will report ESG exposures transparently using MSCI ESG ratings.”
The Fund will be relevant to institutional investors, discretionary fund managers and wealth managers in the world’s developed markets including the UK, Europe and Australia, where Cameron Hume’s networks are principally located, as well as in the United States and Asia.