Swiss asset manager Bantleon has launched the Select Green Bonds mutual fund.

The fund invests mainly in euro denominated global green bonds with investment-grade rating with up to 25% of the fund assets invested in high-yield bonds with a minimum rating of B- or B3. Bantleon says the investment objective is to achieve an outperformance compared to the global green bond market (hedged in EUR) without increasing volatility. Furthermore, ESG ratings and standards are targeted that exceed those of the benchmark.

The investment process is based on five central criteria: greenwashing, emission/issuer analysis, use of funds & administration, reporting, second opinion & certification. Bantleon says they examine the green bonds on the basis of exclusion criteria and the use of funds; the focus is on compatibility with the UN sustainability goals, as green bonds may have a significant influence on the achievement of 12 of the 17 sustainability goals. The ESG exclusion process is based on the environmental, social and corporate governance principles in Bantleon’s investment process and the Principles for Responsible Investment of the UNPRI organisation.