As part of its ongoing commitment to socially responsible investment, with effect from October 2017, NOW: Pensions has introduced green bonds into the NOW: Pensions Diversified Growth Fund. The fund now has approximately 13% of total assets under management invested in green bonds.
Green bonds provide essential capital for projects involved with environmental and climate protection. For example, renewable energies, resource efficiency, environmental friendly transportation, pollution prevention and control, sustainable water and wastewater management and biodiversity. Investments have been made in green bonds issued by KfW, the European Investment Bank and the French Government.
In line with diversified approach adopted by the portfolio, investments have been made in green bonds denominated in GBP, USD and Euro.
Win Robbins, Trustee Director, NOW: Pensions said: “The NOW: Pensions Investment team has thoroughly researched the green bond market to identify bond issues which satisfy the risk return characteristics that the portfolio is seeking.
“Encouraging and financing projects which focus on environmental and climate protection cannot be left solely to governments. The green bond market fulfils a vital role for society as a whole, while also benefitting members of the NOW: Pensions Scheme.”