Edinburgh-based fixed-income manager, Cameron Hume, has announced the launch of its new fund, the Global Fixed Income Environmental, Social and Governance (ESG) fund, which will target institutional investors, discretionary fund managers and wealth managers in developed markets across Europe and in Australia.
The actively managed fund would offer exposure to a globally diversified portfolio of up to 400 fixed-income securities from issuers who would be able to demonstrate higher average ESG ratings.
It would also aim to outperform the Bloomberg Barclays Global Aggregate Index while excluding issuers involved in the production of controversial weapons or countries that were subject to United Nations, European Union or United States sanctions.
According to Cameron’s co-founder and chief investment officer, Guy Cameron, his fund would take a “returns-based” rather than a “value-based” approach, hoping to better manage ESG exposure for their fixed-income allocation.
“By using CaTo [Cameron Hume Tools] we are able to value individual corporate bonds within industry sectors and use third-party ESG ratings to evaluate the potential quality of over 3,000 investment-grade and high-yield bonds,” he said.