The PIMCO GIS Global Bond ESG Fund invests in a range of sovereign and investment grade corporate bonds from around the world. It aims to deliver “attractive returns while making a positive social impact.”
The fund is managed by a team led by Andrew Balls, managing director and CIO of global fixed income, and Alex Struc, portfolio manager co-heading the ESG initiative at PIMCO.
PIMCO said it has ‘three key elements’ in its ESG process; exclusion, evaluation and engagement. Companies with business practices that are misaligned with sustainability principles are excluded. Companies are also evaluated on their ESG credentials and those with best-in-class ESG practices are favoured. The investment team engages with companies, encouraging them to improve their ESG practices and influence long term change, PIMCO said.
Balls said: “For many investors, screening out undesirable investment categories isn’t enough anymore; they want to use their investments to promote change in the world. Our ESG platform provides the tools to do that without compromising on returns.”
“Historically, this type of strategy has been pursued by equity investors but we firmly believe that engagement as a debtholder is equally important,” Struc added. “Across the vast fixed income universe, small change can have an enormous positive impact.”
