Algebris Investments has launched a sustainable bond fund, investing globally in fixed income securities across several areas critical to ESG development.
It will be managed by Gabriele Foà and the firm's global credit team, who will also receive expertise from Antonio Volpin, senior investment director, and Simone Ragazzi, portfolio manager for the firm's Sustainable World fund, as well the ESG framework developed by Silvia Merler, head of ESG and policy research.
The Algebris Sustainable Bond fund hold an Article 9 rating and will adopt a fundamental, bottom-up approach, and is systemically hedged via its base currency of the euro.
Foà said: "The Algebris Sustainable Bond fund adds to our existing global credit offering by providing a long-only, low-beta alternative to our flexible solutions in this space.
"Drawing on the expertise of both our global credit and ESG teams, the strategy will invest in high-quality companies which offer relatively high spread within the new fixed income environment."
He said: "Our ESG framework, centred on issuer rather than security selection, together with our in-house credit expertise across sectors, means the portfolio is focused on companies with healthy business models and sound financial metrics.
"Our portfolio targets a 200-300 spread range for a solid set of issuers. This way, our credit selection process combines attractive risk-reward with sustainability."
