The fund provides investors with access to an environmentally friendly fixed income investment strategy
State Street Global Advisors announces the launch of the State Street Global Green Bond Index Fund, the first UCITS compliant mutual fund that tracks the Barclays MSCI Green Bond Index. The fund will be offered via a Luxembourg SICAV, making it available to pan-European investors.
A green bond is a debt instrument with similar characteristics to a traditional bond, with the condition that the proceeds are exclusively applied to projects or activities that promote environmental sustainability. This may include the development of alternative or renewable energy efficiency projects, pollution prevention and control, sustainable water and green buildings.
Commenting on the launch, Niall O’Leary, head of portfolio strategy, Europe, Middle East and Africa (EMEA) at State Street Global Advisors said, “The launch of the State Street Global Green Bond Index Fund brings our Environmental, Social and Governance (ESG) fund range available in Europe to four. Green bond investing has seen substantial growth in the last 12 months, with in excess of $36 billion of green bonds issued in 2014* as investors continue to demand sustainable investment strategies and diversification within their fixed income allocations.”