The latest news in investment offerings, financial products and other services relative to wealth advisors and their clients.

EdenTree Investment Management
City of London-based EdenTree Investment Management, a specialist in responsible and sustainable asset management, has launched the EdenTree Global Select Government Bond Fund, a global portfolio of government and government-related ESG-labelled bonds.

Managed by EdenTree’s head of fixed income, David Katimbo-Mugwanya (pictured), the new fund targets at least 80 per cent asset exposure to government and government-related green, social, sustainable or impact bonds, the proceeds of which finance new or existing projects that support a reduction in carbon emissions. Tailor-made to meet client demand, the fund also aims to provide a regular income, payable quarterly, in a manner consistent with its sustainability approach.

“In a market environment that offers considerably higher bond yields compared to the last decade, the risk-return profile of government debt from an asset allocation perspective has markedly improved. As such, we believe this new fund is ideally placed to leverage these market dynamics in the best interests of clients seeking to credibly enhance sustainable fixed income offerings when allocating to government debt,” Katimbo-Mugwanya said.

“While equities have traditionally dominated the options available for responsible investors, fixed income now provides innovative sustainable investment products with varying risk profiles, degrees of impact and competitive rates of return. With this in mind, we are delighted to further enhance our fixed income offering, providing our clients with greater flexibility and increased choice when it comes to meeting their investment and sustainability goals,” James Tomlinson, head of Wholesale Distribution, EdenTree, said.

Payden & Rygel
Payden & Rygel, a privately owned global investment management firm, has announced the launch of Payden Global Investment Grade Corporate Bond Fund. 

Seeded with $50 million, the new UCITS fund predominantly invests in investment-grade corporate securities, combining top-down analysis of the investment environment with fundamental issuer research to identify securities offering attractive risk/return profiles, the firm said in a statement. 

Evolved from strategies first applied by Payden to global multi sector portfolios and offered (in the US) since 2012, the new UCITS is actively managed and will seek to outperform the Bloomberg Global Aggregate Corporate Index. 

This new fund has been launched in response to institutional investors’ requirements to lock yield into their fixed income portfolios at a time when leading central banks (with the exception of the Bank of Japan) are cutting interest rates with a concomitant effect on bond yields, it said. 

“The fund is well placed to enable investors to take advantage of the higher yields currently available across the global spectrum of investment grade bonds with a specific focus on enhancing value through active management to generate superior risk-adjusted returns,” Frasat Shah, senior vice president, said. 

Initially, the new fund will be offered in US dollar, pound sterling and euro share classes. New currency share classes will be added in response to investor requirements. Currency risk is typically hedged to the currency of the share class.