ODDO BHF Global Target Green 2028
ODDO BHF Asset Management launches ODDO BHF Global Target Green 2028, its first fixed-maturity Investment Grade1 bond fund investing into global Green, Social and Sustainability bonds.
Paris, Frankfurt, Düsseldorf, Luxembourg, 7 September 2023
Invested in Green, Social and Sustainable bonds, ODDO BHF Global Target Green 2028 aims to make a positive contribution to climate and environmental protection and to social development. It is one of the very first fixed-maturity bond funds in Europe to be classified Article 9 under the Sustainable Finance Disclosure Regulation (SFDR).
ODDO BHF Global Target Green 2028 is invested exclusively in Investment Grade bonds issued by companies whose objective is to finance projects or activities that benefit the environment in sectors such as alternative energies, utilities, transport and real estate. Bonds are selected on the basis of a proven investment process that combines fundamental credit research with an in-depth analysis of each issue’s green and social features, along with active and thorough risk management.
The fund takes a buy-and-maintain investment approach consisting of buying and holding bonds until maturity but without foregoing switching of assets when that is in investors’ interests. The maximum maturity of selected bonds must not exceed six months beyond 31 December 2028.
With 1.7 billion euros in assets under management2 in fixed-maturity funds, ODDO BHF Asset Management has acquired extensive experience in structuring and managing this type of fund since launching its first fixed- maturity fund in 2009. ODDO BHF Global Target Green 2028 is open to new investors until 31 December 2024.
Eugen Biller, fund manager at ODDO BHF Asset Management GmbH: “As a fast-growing market, green bonds are an ideal instrument, with a balanced risk profile that allows issuers to identify specific projects into which investors can steer their capital explicitly”.
Cyrielle Boyer, Global Head of Euro Aggregate Management at ODDO BHF Asset Management: “Barring a credit event, holding bonds until maturity addresses the objective to lock in a large portion of yield at the moment of purchase and to gradually neutralise interest-rate and credit risk.”
It should be noted though that these investments incur a credit risk and the risk of loss of capital.
Nicolas Chaput, Global CEO of ODDO BHF Asset Management: “Investors are increasingly seeking solutions offering both yield and the opportunity to take on exposure to projects having a tangible and sustainable impact on the environment. ODDO BHF Global Target Green 2028 is particularly well suited to addressing these two expectations.”
1 Issues rated at least BBB-; 2 As of 31 May 2023