POWERED BY MOMENTUM MEDIA
Investors going green with bonds
Investors are doing their part in helping the environment as the global green bond market is expected to grow significantly this year, according to BNP Paribas.
The company said investment in green infrastructure is increasing at a rapid rate both domestically and overseas.
Head of global markets, James Hayes said BNP Paribas was receiving more and more enquiries from corporates about this avenue of fund raising.
"We expect green bond issuance to increase and diversify as governments across Asia Pacific look to build cleaner urban infrastructure and energy production," he said.
Hayes said a reason for the growth was the increasing adoption of ESG [environment, social and governance] by institutional investors, as seen this month by pension funds such as CalPERs and others.
"Another reason is the increasing use of ESG in risk management. This ranges from simple diversification of funding sources and investments to ESG overlays being increasingly used as another form of risk analysis and management by institutional investors."
He said green bonds also helped supranational and sovereign investors demonstrate that they are responsible investors.
Recommended for you
Infrastructure well-positioned to hedge against global uncertainty, says investment chief.
The fund manager remains positive on the outlook for gold and believes ongoing market volatility will provide opportunities to acquire small-cap stocks in promising sectors.
T. Rowe Price Group VP said investment strategies must adapt to an ageing population, as Australians outlive their retirement savings.
The international asset manager expects AI will reach a point in the near future where it can autonomously manage investments within certain parameters set by fund managers.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
88.01 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.46 3 y p.a(%)
4
Pengana High Conviction Equities B
39.12 3 y p.a(%)
5
Pengana High Conviction Equities A
39.05 3 y p.a(%)
