PIMCO Launches Global ESG Investment Platform

Josh O'Neill

20 January 2017

has rolled out an environmental, social and governance investment global platform that offers a range of fixed income solutions to investors seeking returns while making a positive social impact.

As part of the firm's latest offering, PIMCO's GIS Global Bond ESG Fund has been launched in Europe, Middle East and Africa.

PIMCO applies a “robust” framework across its ESG solutions, the group said in a statement. This includes three key elements: exclusion, evaluation and engagement. Companies with business practices that are misaligned with sustainability principles are excluded from PIMCO's ESG portfolios. Institutions are also evaluated on their ESG credentials and those with optimum ESG practices are favored in these solutions. PIMCO's staff engages with companies to encourage them to improve their ESG practices and influence long-term change.

The firm's newly-launched GIS Global Bond ESG Fund invests in a range of sovereign-and investment-grade corporate bonds from around the world and aims to maximize total return. The fund is managed by a team led by Andrew Balls, managing director and chief investment officer of global fixed income and Alex Struc, portfolio manager co-heading the ESG initiative at PIMCO.

Additionally, PIMCO has enhanced two of its socially responsible funds in the U.S. to incorporate a wider range of ESG considerations into the investment process.

“Historically, this type of strategy has been pursued by equity investors but we firmly believe that engagement as a debtholder is equally important. Across the vast fixed income universe, small change can have an enormous positive impact,” said Balls.