According to Genus, the fund has made a huge impact and uses a rigorous green bond validation system, making it a strong option for investors focused on making a difference around the world. At least 80% of this will consist of impact investments with positive screening, while 20% will contain more traditional, fossil-free investments.
The fund will also have stricter criteria than other Canadian green bonds that focus on Canadian investments. For one, they may have assignments to railroad companies that Genus has excluded.
“We have chosen not to invest in Canadian railroad companies that generate a significant portion of their revenue from the transportation of oil and gas, nor will we use this fund to invest in oil and gas companies that have renewable energy projects perform “, said Thiessen said. “Our criteria are stricter.”
Alpha Fixe Capital, a leader in green bond management in Canada, manages the fund. Through this arrangement, the fund offers investors the opportunity to distribute their capital across a range of high-impact sustainable bonds, including 29.61% in renewable energy, 17.69% in low-carbon buildings and 15.32% in energy-efficient public transport (such as from May 27th, 2021).
“The Impact Bond Fund is committed to impacting the environment in areas such as renewable energy and green buildings while delivering solid financial returns,” said Simon Senecal, Partner and Portfolio Manager, Responsible Investment, at Alpha Fixe Capital.