Investment firm officially delivers an impact solution for each major asset class with latest offering
As impact investing continues to hit the right notes for many ESG investors, NEI Investments has become the first Canadian investment manager to offer an impact mandate for each major asset class with the launch of its latest fund.
The NEI Global Impact Bond Fund is diversified across high-quality government, corporate, and sovereign bonds from around the world, making it suitable as a core fixed-income solution for investors. It complements the NEI Environmental Leaders Fund, which is focused on equities, and the NEI Global Sustainable Balanced Fund, which blends fixed income and equity assets.
Available to Canadian investors only from NEI, the NEI Global Impact Bond Fund accepts only securities from bond issuers whose products, services, or funding objectives are designed to address prevalent social and environmental issues.
The fund is sub-advised by Wellington Management Canada ULC, which is affiliated with Boston-based asset manager Wellington Management Company LLP. With a history spanning more than 90 years, Wellington’s commitment to responsible investing extends to all the clients it serves across 63 countries.
“This is a cutting-edge impact solution … that brings materiality and measurability to the Canadian retail market, thanks to our new partnership with Wellington,” said John Bai, VP and Chief Investment Officer for NEI Investments.
Free from fossil-fuel exposure, the fund features a majority allocation to investment-grade bonds from developed economies. Its mandate requires all bond holdings to meet proprietary impact criteria in areas including but not limited to education and job training, safety and security, affordable housing, health, and clean water and sanitation. Impact results are measured against key performance indicators to let investors appreciate the positive, quantifiable difference their portfolio investments make.
“It has been clear throughout our dialogue that NEI and Wellington are aligned in our impact investing philosophies,” said Campe Goodman, senior managing director, partner, and Fixed Income Portfolio Manager for Wellington.
“We strive to address some of the world's major social and environmental challenges while uncovering opportunities across the broad spectrum of fixed income. We intend to achieve this positive impact in addition to delivering a competitive financial outcome for Canadians.”