Columbia Threadneedle Investments has launched a new social bond fund, managed by the firm's social bond team and led by fixed income senior portfolio manager Tammie Tang.

The CT Global Social Bond Fund launched today (28 June) and aims to use the growing size of the bond market to target social outcomes.

The fund joins similar strategies from Columbia Threadneedle, which are focused on the UK and Europe and utilise the firm's existing methodology to determine the suitability of bonds through a social rating.

Since the launch of its European Social Bond strategy was launched in 2017, Columbia Threadneedle said the social bond market had grown from $200bn to $3.5trn.

The firm's method uses seven key social development fields to assess suitable bond issuers, mapping them to the underlying 169 targets of the UN Sustainable Development Goals.

Further counsel was provided by the fund's social advisory panel, which is comprised of members from Columbia Threadneedle, ‘The Good Economy' and impact adviser Steward Redqueen.

The fund is expected to hold between 75 and 125 securities and have an ongoing charges figure of 0.39%.

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Tang said: "The launch of the CT Global Social Bond fund is an important step in Columbia Threadneedle's ongoing commitment to, and belief in, the power of impact investing.

"As pioneers in this area, we are confident in the potency of bond investing to tackle globally systemic problems without sacrificing financial returns in line with the benchmark.

"By actively selecting specific bonds with positive social outcomes, rather than excluding bonds through conventional negative screens, we aim to generate positive social and financial results."

Michaela Collet Jackson, head of distribution EMEA Columbia Threadneedle, added: "Following increased client demand for both our UK and European social bond strategies, working with clients we believe the time is right to expand our range to include a Global strategy.

"We are excited to offer clients this new offering, which provides access to our tried and tested model of achieving financial returns and positive social impact, now using the global universe of socially labelled bonds."