22 Apr 2015 16:15

Green Bond Fund complements sustainable offering

SEB has launched a green, global bond fund that private individuals can invest in. "More and more people are demanding sustainable savings, and with SEB Green Bond Fund, we will have a good alternative for those who are interested in sustainable investments in the fixed income markets" says Peter Branner, head of Investment Management at SEB.

SEB Green Bond Fund, is joining SEB’s ethical funds and micro financing fund in the bank’s range of sustainable investment opportunities.

“More and more people are demanding sustainable investment alternatives, so it feels great that we can now offer a green bond fund to private individuals,” says Branner. “With a fixed income product, we complement our offering in this segment. My hope is that we, in the near future, will see more funds with clear linkages to environmental, social and governance issues (ESG). We are strengthening our profile within ESG continuously, but at a pace that ensures long-term quality products. This benefits our credibility.”

Green Bonds were issued by the World Bank in 2008, after having developed the concept together with SEB in 2007. Green bonds are bonds with explicit sustainability themes that have a positive impact on the environment and climate. To ensure compliance with this, green bonds require more documentation. However, green bonds have the same characteristics as other bonds with respect to risks and legislation.

Marianne Gut, fund manager of SEB Green Bond Fund, has extensive experience in investing in green bonds.

“SEB Green Bond Fund provides a unique opportunity to gain broad exposure in green bonds. That the fund invests globally means higher liquidity and increased possibilities to generate returns. However, the potential on the fixed-income market right now is limited due to the current interest rate environment,” says Marianne Gut.

By choosing our green alternatives, private individuals can now co-finance environmentally and climate friendly investments and a sustainable future. In addition to the fund being green, we have also an ethical screening in our investment universe.”