Allspring Global Investments established its third climate transition fund, the Worldwide Climate Transition Global Buy and Maintain Fund, highlighting companies dedicated to lowering carbon emissions.
The fund, which is registered in the UK, Luxembourg, and Switzerland, falls under SFDR Article 8, requiring it to promote either environmental or social causes. Allspring states the fund will invest specifically in companies “seeking to reduce the carbon intensity of their investments and provides a clear path to net zero by 2050.” The portfolios have come in quick succession at Allspring, who launched its second strategy of this kind on 7 June after the original fund was launched in 2021.
Allspring has entrusted the fund to portfolio managers Henrietta Pacquement, Alex Temple, Scott Smith, and Jonathan Terry.
Pacquement, who leads the fixed income climate transition offering with 21 years of experience in the industry, said: “After more than a decade of depressed yields, investors are now able to take advantage of much more constructive market conditions to build diversified exposure to high-quality credits.
“I have been saying all year that last year’s correction creates this year’s opportunity, and the launch of this new fund could not be better timed. We have continued to deepen our research and resources around sustainability and climate research and can add significant further value to our clients in this evolving area.”
Catherine McLaughlin, head of UK & Ireland Institutional, said the fund size grew to over $100m (£82 m) since its inception in August.
“Following the rapid rise in yields in 2022, our UK institutional clients are increasingly de-risking their portfolios, resulting in a larger focus on quality fixed income assets,” McLaughlin said.
“We have worked with both clients and consultants to design this solution that provides a combination of income to meet cash flow needs, net-zero aligned to meet climate goals and credit to provide attractive yield.”
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