UK-based sustainable investment manager EdenTree has launched the EdenTree Global Select Government Bond Fund, a global portfolio of government and government-related ESG-labelled bonds, expanding its fixed-income fund suite. The new vehicle targets at least 80% asset exposure to government and government-related green, social, sustainable and impact (GSS+) bonds – the proceeds of which will finance new or existing projects to support the reduction of carbon emissions caused by human activities, and heighten access to services that “empower communities around the world”. Sovereign ESG-labelled debt issuance has grown at an “unprecedented pace”, according to EdenTree, with government and government-related issuance making up just over half of the outstanding global universe of use-of-proceeds GSS+ debt. “Urgent steps are needed to address global sustainable development funding requirements, and governments have a unique ability to mobilise capital at scale through vast debt issuance programmes, placing them in a prime position to fund projects that tackle these societal challenges,” said David Katimbo-Mugwanya, Head of Fixed Income at EdenTree. “In a market environment that offers considerably higher bond yields compared to the last decade, the risk-return profile of government debt from an asset allocation perspective has markedly improved. This new fund is ideally placed to leverage these market dynamics [for] clients seeking to credibly enhance sustainable fixed-income offerings when allocating to government debt.”
