Nikko Asset Management expands green bond capability

Andre Severino

Andre Severino

Nikko Asset Management (“Nikko AM”) has announced the expansion of its global green bond capability to include a wider investment universe of Sovereign, Supranational and Agency (SSA) green bonds.

The Nikko AM Global Green Bond Strategy provides investors access to green bonds through a diversified and actively managed portfolio. The new strategy mandate enables the London-based global fixed income team to invest across a wider universe of predominantly AAA rated SSA-issued green bonds.

Global Head of Fixed Income Andre Severino said, “Nikko AM is a pioneer in the green bond investment space, and the green bond market is experiencing record growth – Moody’s Investors Service projects green bond issuance to grow to between USD175–USD200 billion in 2018, surpassing the 2017 record of USD 155 billion.

The team actively invests in green bonds across both developed and emerging markets, and we believe this best positions us to deliver sustainable alpha for our clients in a fixed income portfolio while also contributing to the preservation of the environment. The investment focus is on sovereign agencies that provide the leading standard of reporting and project selection.”

Nikko AM launched one of the world’s first green bond funds in 2010. The expanded investment universe provides clients greater access to the growing green bond market, in addition to providing capital to a wider array of green projects worldwide. According to Standard & Poor’s, the green bond market was worth USD372 billion at the end of December 2017.

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