BNP Paribas Asset Management has launched a Social Bond fund, which will invest in bonds aimed at financing projects with positive social impacts.
The fund is classified as Article 9 under SFDR and falls under the management of BNP Paribas AM's bond team and sustainability centre.
It will utilise BNPP's proprietary methodology where bond and issuer selection are aligned with the firm's sustainable investment standards.
The fund will invest in three areas, with a minimum of 75% allocated to bonds labelled social or sustainable, promoting access to essential services such as water, affordable housing, employment, food security and others.
Up to 25% of the fund can invest in bonds issued by socially responsible companies and a maximum of 10% in microcredit instruments that help provide small businesses and individuals in emerging markets with access to financial services.
It will be available to investors for an ongoing charges figure of 0.68%.
Arnaud-Guilhem Lamy, head of euro aggregate bond strategies at BNP Paribas Asset Management and manager of BNP Paribas Social Bond fund, said: "The growing importance of bonds within thematic management, historically more geared towards equities, and the emergence of social considerations among investors are two major developments in our industry.
"The launch of BNP Paribas Social Bond fund reflects both of these and enables capital to be directed towards activities with a positive social impact, such as unemployment benefit programmes or social housing. Our rigorous methodology brings real added value, by evaluating not only the quality of the issuer but also that of the projects being financed."
