An Article 9 fund which applies a comprehensive ESG Framework to its investment universe, a system designed to reward companies for sound ESG practices.
TwentyFour Sustainable Global Corporate Bond Fund invests in a broad universe of primarily investment grade corporate bonds, seeking to maintain an attractive level of income together with capital growth opportunities, over the longer term.
Investment objective
The Fund aims to exceed the return of the ICE BofA Global Corporate Index over the medium to long term, based on a combination of income and capital growth.
The Fund has a sustainable investment objective within the meaning of Article 9 of the EU’s SFDR, which consists of investing in securities of issuers that contribute towards the Paris Agreement’s goal to hold the increase in the global average temperature to below 2˚C above pre-industrial levels.
Why invest?
- The Fund will invest primarily (around 70%) in investment grade corporate bonds, but may also invest in government bonds and up to 20% in high yield corporates.
- ESG Framework helps to ensure investors’ capital is invested sustainably, while still benefiting from TwentyFour’s specialist and active approach to fixed income.
- A minumum 80% of the portfolio is invested in securities of issuers that contribute towards the environmental objectives of climate change mitigation and/or climate change adaptation.
- Companies are scored on criteria including resource use, emissions and environmental innovations. These are further divided into sub-categories such as water use, sustainable packaging, biodiversity and green capital expenditure, with over 150 environmental data points considered.
- The Fund excludes corporate issuers that derive a non-negligible part of their revenues from products or activities such as weapons, carbon intensive operations, alcohol, gambling and adult entertainment.
- The team continues to assess the underappreciated factor of ESG momentum and encourage progress through targeted engagements with bond issuers which are closely monitored and followed up.
Investment Team
