Mirova, the subsidiary of Natixis Investment Managers, is expanding its fixed income range with the the launch of two Article 9 bond funds, the Mirova Euro High Yield Sustainable Bond fund and the Mirova Euro Short Term Sustainable Bond fund.
The Mirova Euro High Yield Sustainable Bond strategy will offer exposure to smaller companies with a credit rating below BBB, with particular interest to those specialising in medical care, sustainable mobility, clean packaging, recycling/waste treatment and sustainable real estate.
The portfolio will be made up of approximately 80 issuers with credit rating upgrade potential and "robust" yields, whose solutions are helping accelerate the transition towards a more sustainable economic model, while maintaining a risk profile mid-way between equities and bonds and a moderate duration, the firm said.
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The Mirova Euro Short Term Sustainable Bond fund seeks to reduce the negative impact of increasing interest rates on the absolute performance of the portfolio and to benefit from yields on maturities of less than four years, which Mirova said "have now become attractive again".
This portfolio will invest in green and sustainable bond programmes and many companies that need short/medium-term financing to address and provide solutions to sustainable development issues.
Like all other Mirova funds, these new portfolios will adhere to a maximum 2°C scenario to participate in the decarbonisation of the economy.
Hervé Guez, CIO of Equity and Fixed Income and Social Impact at Mirova, said: "Today, more than ever, we must give priority to financing that contributes to environmental and social development.
"2022 has unfortunately shown us that the problem of energy dependence must be addressed as quickly as possible and integrated into a longer-term energy transition plan. Our two new funds align with this wish and with Mirova's mission".
