BMO Global Asset Management has launched a responsible Euro corporate bond fund, following increasing demand for ESG-focused funds, the group has announced.
The BMO Responsible Euro Corporate Bond fund is to be managed by Andrew Brown and Citywire + rated Rebecca Seabrook.
It will mainly invest in investment grade, ethically-screened euro-denominated fixed interest securities.
The newly-launched fund is the second fixed income strategy within the responsible range, as BMO has received growing demand for investments that contribute to sustainable development across asset classes.
The new euro-focused corporate strategy invests in companies that are making a positive contribution to society, those that are taking action to improve the environment as well as those operating in a transparent way in the reporting of their business activities.
The portfolio managers will be responsible for credit research, choice of investments and portfolio construction. They will be supported in the screening of ethical and sustainable criteria by governance and sustainable investment teams as well as the responsible investment advisory council.
Commenting on the new launch, Brown said: ‘The BMO Responsible Euro Corporate Bond Fund will be managed with the same approach as our existing Responsible Sterling Bond fund, with the team focused on active credit management, with a view towards capturing risk-adjusted returns over full market cycles, whilst taking into account ESG issues.’
The fund launched as a Sicav with €45.2 million in assets.