Salt Funds Management has raised approximately $60 million from both external clients and internal strategies for a new sustainable global fixed income product operated by Morgan Stanley.
The Salt Sustainable Global Fixed Income Opportunities Fund officially launched last Friday and has attracted support from a wide range of wholesale investors, according to Greg McMaster, Head of Client Partnerships.
“There is interest from philanthropic clients, iwi, philanthropic organizations and superfunds for sustainable international fixed rate solutions,” said McMaster.
The new strategy will also replace the Hunter Global Fixed Rate Fund, two salt diversified funds open to both retail and wholesale investors. Salt has appointed Hunter, now owned by Harbor Asset Management, with PIMCO as the investment manager, as a global anchor for a sustainable growth and income diversification product to be released in 2021.
Salt, the first strategy launched by the company’s UK division in 2020, has turned to global equity partner Morgan Stanley Investment Management to manage its sustainable fixed income portfolio.
In a memo to investors, Salt said: Issuer. Fixed income investors now play a more important role in facilitating dialogue and engagement with fixed income issuers, building momentum for positive change. “
McMaster said the fund has a minimum 15% allocation to “green bonds” with environmental, social and governance (ESG) risk screening, and is strongly focused on sustainable outperforming companies (corporations and sovereigns). Tilted and positive results, especially low carbon emissions.
“The fund has about 75% less carbon exposure than the global benchmark,” he said.
However, Morgan Stanley-managed fixed income funds also offer broader market exposure, which is a significant departure from popular index and benchmark-oriented global fixed income portfolios.
The Morgan Stanley Fund currently holds approximately 200 securities against over 10,000 in the Bloomberg Barclays Global Aggregate Bond Index.
In a paper accompanying the product launch, Greg Fleming, head of Salt’s global diversified fund, claims: What really matters for markets and for humanity lies ahead in the decades ahead. “
“By contrast, being unconstrained by benchmarks allows better funds to focus on delivering consistent, uncorrelated returns from a variety of sources of alpha. is also reduced,” says Fleming.
The Salt Sustainable Global Fund is a fully hedged New Zealand Dollar portfolio investment entity with an annual management fee of 0.45%.
https://investmentnews.co.nz/investment-news/sustainable-global-bond-fund-opens-in-salt-suite/ Sustainable Global Fixed Fund Opens in Salt Suite…