BNP Paribas Asset Management has launched the BNP Paribas Social Bond fund.
The fund invests in three main areas:
• A minimum of 75% in bonds labelled social or sustainable, promoting access to essential services such as water or health, affordable housing, employment, food security, socioeconomic progress or basic infrastructure.
• A maximum of 25% in bonds issued by socially responsible companies, selected according to a rating model developed by BNPP AM that assigns an ‘inclusion score’ to issuers, ranking them on their social practices aimed at reducing inequalities.
• A maximum of 10% in microcredit instruments that help provide small businesses and individuals in emerging markets with access to financial services.
The fund is classified as Article 9 under SFDR and launches during a period of record growth for the sustainable bond market, in particular social bonds.
Arnaud-Guilhem Lamy, Head of Euro Aggregate Bond Strategies at BNP Paribas Asset Management and manager of BNP Paribas Social Bond fund, comments: “The growing importance of bonds within thematic management, historically more geared towards equities, and the emergence of social considerations among investors are two major developments in our industry. The launch of BNP Paribas Social Bond fund reflects both of these, and enables capital to be directed towards activities with a positive social impact, such as unemployment benefit programmes or social housing. Our rigorous methodology brings real added value, by evaluating not only the quality of the issuer but also that of the projects being financed.”