Paris-based asset manager Eiffel Investment Group announced the launch of Eiffel Short Term Green Bonds, a new short-duration euro-denominated bond fund investing primarily in green bonds issued by companies in developed countries.
According to Eiffel, the new fund, classified as Article 9 under the SFDR regulation, is intended to offer investors with a short-term investment solution combining a defensive risk profile with positive environmental impact.
The new fund targets 100% sustainable investments, and is committed to holding a minimum of 75% of green bonds in the portfolio. The firm said that the management objective is to deliver a net performance above €STER + 0.10% over a recommended investment period of 12 months, and highlighted the portfolio’s diversification, with 109 positions from 87 issuers.
The fund favors Investment Grade issuers and targets a duration of between 1 and 2, with security selection based on fundamental credit risk analysis, complemented by a systematic integration of extra-financial criteria, Eiffel added.
According to Guillaume Truttmann, co-manager of Eiffel Short Term Green Bonds, the new fund “is designed for all investors who wish to give meaning to their short-term investments.”
Truttmann added:
“With Eiffel Short Term Green Bonds, we are offering a fixed income investment solution that combines controlled risk with environmental commitment. The short-term green bond market today presents opportunities in quality issuers, while directly financing the energy transition.”
