Nikko Asset Management (Nikko AM) has today expanded its green bond range with the launch of a new Article 9 fund.
The Luxembourg-domiciled Nikko AM Global Green Bond UCITS fund provides investors access to green and sustainability bonds through a diversified and actively managed portfolio.
It will invest in a broader investment universe beyond sovereign, supranational, and agency green bonds, allowing for a wider variety of impact opportunities presented by the inclusion of corporate issuers and of social, sustainability and sustainability-linked bonds.
The Nikko AM Global Green Bond will invest capital in a way that contributes to the UN sustainable development goals, in particular affordable and clean energy, sustainable cities and communities, and climate action.
Andre Severino, head of global fixed income at Nikko AM, said: “It is exciting to participate directly in addressing two environmental megatrends: climate change and loss of biodiversity. The proceeds from the bonds we hold will directly fund projects that promote nature and support positive climate change solutions.”
Nikko AM is a pioneer in the green bond investment space, having launched one of the world’s first green bond funds in 2010.
S&P Global projects that GSSSB (Green, Social, Sustainable, and Sustainability-linked Bond) issuance in 2023 to be between $900bn to $1trn, or 14% to 16% of total bond issuance.