NEI Investments has launched a new impact bond fund, rounding out its offering of impact investments.
With the addition of the NEI Global Impact Bond Fund, the Toronto-based firm now offers three impact funds to investors, covering both equities and fixed income. In a Tuesday release, NEI said it was “the first Canadian investment manager to offer an impact solution for each major asset class.”
The new fund invests in government, corporate and sovereign bonds from around the globe, mainly in developed economies. Each bond issuer’s “products, services, or funding objectives must be designed to address prevalent social and environmental issues,” the release said.
The fund is fossil fuel-free and uses “proprietary impact criteria” to assess how well bond issuers are addressing concerns in key areas that include “education and job training, safety and security, affordable housing, health, and clean water and sanitation, among others.”
Investors are provided impact results using proprietary performance indicators to help them understand “the positive, quantifiable difference they are making with their portfolio,” the release said.
The fund is sub-advised by Wellington Management Canada ULC, an affiliate of Boston-based asset manager Wellington Management Company LLP.
“With this fund, Canadians get the rare opportunity to combine their desire to make an impact with the need for core fixed income exposure at a time when equity volatility is exceptionally high,” said John Bai, vice president and CIO for NEI Investments.