The ESG Phenomenon: PineBridge, Redwheel
The latest developments in the ESG space.
As ESG-focused funds move up the agenda, PineBridge Investments, a New York-based private, global asset manager, has upgraded its Global Emerging Markets Corporate Bond Fund to an Article 9 compliant fund under the European Union’s Sustainable Finance Disclosure Regulation protocol.
The fund will be named the PineBridge GEM SDG Corporate Bond Fund, the asset manager said in a statement.
The fund seeks to achieve long-term, capital appreciation through investment in bonds issued primarily by corporate entities and financial institutions located in emerging markets. Such securities may be denominated in the local currency of any of the OECD member countries or the local currency of the emerging countries in which the fund is permitted to invest as per investment guidelines, the firm continued.
It is a Dublin-domiciled UCITs vehicle, registered for sale in Austria, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Singapore, Sweden, Switzerland, and the United Kingdom.
Sustainable investing is central to the team’s investment process. Consequently, the fund will only invest in assets that have been assessed as positive contributors to four of the United Nations Sustainable Development Goals: Decent Work & Economic Growth, Industry Innovation & Infrastructure, Responsible Consumption, and Production & Climate Action, the firm said.
The fund will deploy proprietary, forward-looking sustainability scoring which aims to manage sustainability risks, promote a more sustainable investable universe, and capitalise on sustainability-driven change.
Managed by Chris Perryman, portfolio manager, head of trading at PineBridge Investments, the strategy is supported by established portfolio management, research, and trading teams based in London, New York, Santiago, Hong Kong, and Singapore, the firm continued.
Perryman said: “Emerging markets represent approximately 40 per cent of the world’s economy in terms of GDP as well as a majority of both the world’s population and carbon emissions.”
“Focusing on sustainability risks can reduce downside volatility within EM debt markets, while identifying improving sustainability credits can enhance total returns of active emerging market debt portfolios,” he continued.
PineBridge Investments manages $133.4 billion across global asset
classes for sophisticated investors around the world.
Redwheel, a specialist independent investment manager, has launched a new sustainability framework – Greenwheel – to power and help deliver sustainable investment solutions that meet growing demand from clients.
Greenwheel’s remit is to advise, support and provide an independent challenge to Redwheel’s investment teams with research, sustainability strategy and client perspectives at each stage of the product lifecycle for the Enhanced Integration, Transition and Sustainable funds, the firm said in a statement.
Tord Stallvik, CEO of Redwheel said: “Whilst ESG is already fully integrated across all teams, we wanted to provide further support and challenge as part of creating industry-leading sustainable solutions that meet the demands of our clients. Greenwheel helps us do this.”
Redwheel investment teams will commission research from Greenwheel throughout the product lifecycle to complement their own analysis and to inform engagement with investee companies, the firm said.
Stephanie Kelly, who joined Redwheel from abrdn last year, will become head of Greenwheel to lead a team of experts with experience from within and outside the asset management industry.
This includes newly-appointed Jessica Wan to lead social research and Paul Drummond to lead climate and environment research. Anna Polise joined in 2022 as climate research analyst, the firm continued.
Kelly said: “A key attraction for me in joining Redwheel last year was the commitment to integrating insight into the way sustainable investment decisions are made and to build products that are highly authentic and have integrity. Our work partnering with the Redwheel investment teams is already underway with some really exciting projects in the pipeline this year.”
The Greenwheel team will work alongside Chris Anker, Redwheel’s head of sustainability. Anker leads the development and operationalisation of the firm’s sustainability policies and provides day-to-day support for ESG integration, stewardship and reporting across the firm’s funds.
With more than 150 people, including 56 dedicated investment professionals, Redwheel has offices in London, Miami, and Singapore.