ADVANCED · FOCUSED · FLEXIBLE
GAM Sustainable Climate Bond Fund
The GAM sustainable climate bond fund is a high conviction strategy focused on delivering a positive environmental impact alongside attractive financial returns for investors. Positive environmental impact is generated by investing in green bonds (and other impact bonds) where proceeds can only be allocated to green projects such as renewable energy or green buildings. Green bonds provide investors with visibility on the use of proceeds and a measurable impact.
The fund invests exclusively in green bonds from the financial sector (banks and insurers). This is based on a conviction that the financial sector has a pivotal role to play in the environmental transition. The European banking sector has tremendous impact potential as it finances the bulk of the economy (around 80% of corporates). Momentum on banks’ own environmental strategies is increasing rapidly due to regulation and banks’ own efforts, and banks are increasingly ramping up green financing and pressuring clients to align their activities to net zero.
The climate bond strategy also offers attractive returns by investing across the capital structure, in both senior and subordinated green bonds of financials. This allows a significant pick-up in spread and yield compared to the Euro Investment Grade Corporate Bond market. The fund is conservatively managed, aiming for a strong investment grade rating
Price and Performance (Daily)
For accredited, professional, institutional and/or qualified persons only.
Past performance is not indicative of future performance. Performance is provided net of fees.
serie | AsOFDateFK | FundName | ISIN | MTD | YTD | SI | MTD | YTD | SI |
---|---|---|---|---|---|---|---|---|---|
1 | 02 Dec 2024 | GAM Sustainable Climate Bond fund | IE000BSJBO14 | 0.00 | 0.06 | -0.01 | 0.22 | 6.47 | -1.02 |
Temperature Alignment
Key Characteristics
100%
GREEN AND
IMPACT BONDS
Categorised
within SFDR as
Article 9
100%
FINANCIAL
INSTITUTIONS
BBB+
AVERAGE CREDIT
RATING
130bps
SPREAD
.
0.9%
YIELD
(in EUR)
Impact Reporting
Tangible impact across a wide range of initiatives (per €10m invested)
- 1,510 tons of CO2 emissions avoided per year
- Equivalent to the emissions of a car travelling 212 times around the Earth
- 2.5 MW of renewable energy capacity installed and 5,220 MWh energy generated
- Equivalent to nearly 35,000,000 km driven by electric cars
- 1,080 m² of green buildings financed
- Equivalent to 10 average European houses
- 830 tons of waste treated per annum
- Equivalent to annual waste of 160 people
- 270 m³ of water treated per day
- Equivalent to the consumption of nearly 2,000 European households
- 2980 m² of buildings refurbished
- Equivalent to nearly 30 European houses
Investment process – Overview
Bottom-up investment approach
Based on long-term credit convictions
Apply in-depth fundamental credit analysis
Indentify issuers with strong credit metrics and corporate governance favorable to bond investors
Research process focused on capital preservation
ESG analysis based on internal scoring model, focus on climate and environmental aspects:
Clear and credible climate strategy
Green bond issuance is aligned to climate strategy
Green Bond Assessment Framework
Ensuring meaningful impact generated for investors
Asset-level green impacT
- Screening at issuer and green bond framework levels
- Assessment of the use of proceeds
- We provide visibility to investors on the allocation of proceeds and key KPls of environmental impact
Issuer ESG quality
- Overall, we seek to invest in issuers with strong ESG credentials – including a clearly defined climate and sustainability strategy, a credible and transparent green bond framework and support for a pipeline in green assets
- Analysis of issuers’ ESG profile is performed internally with a proprietary scoring tool, which assesses material ESG issues for each sector
Green bond framework
- The quality of the governance and processes related to the green bonds’ use of proceeds are assessed using an internal scoring framework based on pre-issuance documentation
- Issuers are required to appoint external verifiers/auditors for pre- and post-issuance reporting