Amundi is to launch a new fixed income fund focused on social bonds.

The Social Bond Strategy will mostly be invested in social bonds aligned with the International Capital Markets Association’s Social Bond Principles (SBP) whose proceeds will be used for projects compliant with the SBP Project Categories. Amundi says it will also include regular bonds issued by sovereigns and corporates selected for their strong social practices. The portfolio may also include innovative instruments such as sustainability-linked bonds with social targets.

It will be managed by Amundi’s Alpha Fixed Income team with Isabelle Vic-Philippe, head of Euro aggregate, as lead portfolio manager for the strategy.