Greenfin Label awarded to G Fund Global Green Bonds: Groupama Asset Management earns another official label for its ESG range
On 1 April, G Fund Global Green Bonds, a fund in the Groupama Asset Management range of fixed-income funds, obtained the Greenfin label (formerly "TEEC" label) following an audit conducted by the French certification agency AFNOR Certification.
A selective label
This label, created and supported by the French Ministry for Ecological and Inclusive Transition, provides a guarantee to investors (banks, insurance companies and private investors) that the financial products bearing the label genuinely contribute to ecological and energy transition. The stated aim of the authorities is to mobilize a significant share of investment to help fund ecological and energy transition.
In practice, this label is based on 4 specific criteria: calculation of the share of green investment in the total investment of the issuers selected in the portfolio, formal exclusions of certain activities, consideration of ESG criteria (environmental, social and governance criteria) and measurement of the positive impact of the investments.
“Obtainingthis public label is essential for us. The selectivity of the Greenfin label compared to other more generalist market labels makes it particularly attractive, especially for investors looking for a label that is demanding in the environmental domain while also taking into account the social and governance pillars,” emphasizes Jean-Louis Autant, Director of CSR.
Dynamic investment approach
Based on the principle of active fixed-income management, including rigorous selectivity of the issuing entities, G Fund Global Green Bonds invests mainly in “Green Bonds”, which account for 80 to 100% of the net assets of the fund from every geographical zone.
The philosophy of the fund is to support issuers in their initiatives in the various fields of ecological and energy transition, such as renewable energies, pollution control, clean transportation, waste management and water conservation, while at the same time generating financial performance.
In detail, bond picking is based on the eligibility criteria defined by Groupama AM, applied to the characteristics of the instrument and of the issuer. So, the internal research team analyzes the extra-financial criteria relating to:
- The issue, in terms of traceability and capital management, the project selection process and compliance with the criteria defined by the “Green Bond Principles”*
- The issuer, in terms of its ESG performance
- The environmental quality of the projects
- The transparency of the issuer and projects.
The proprietary analysis of Groupama AM, conducted by a team of analysts with dual financial and extra-financial competence, employs these 4 selection pillars to admit or exclude a certain number of instruments and issuers in the investment universeMarie-Pierre Peillon
Research and ESG Strategy Director
Green Bonds, a fully-fledged asset class that continues to grow
The commonly accepted definition of green bonds is that they are fixed-income instruments issued on the markets by a company, public entity or the state for the exclusive purpose of financing projects that contribute to the ecological transition or that have a positive impact on the environment. So, their use is exclusively aimed at financing “green projects”.
Worldwide, the Green Bonds market represents USD 750 billion of assets under management (as of the end of December 2019), and the major sources of issues are the Chinese, North American and French markets.
More about the GreenFin Label
Created by the French Ministry for Ecological and Inclusive Transition, the “Greenfin Label” (formerly the “TEEC Label”) is the first national label dedicated to green finance. It guarantees to investors (banks, insurance companies and private investors) that the financial products to which it is awarded contribute to financing ecological and environmental transition in at least one of the following four domains: climate change, water, natural resources and biodiversity. This public label is jointly promoted by Novethic, EY France and AFNOR Certification. The label is awarded for a period of three years, and compliance is verified by annual follow-up audits.
For further information: https://www.ecologique-solidaire.gouv.fr/label-greenfin
* The “Green Bond Principles” are the principles defined by ICMA – International Capital Markets Association
|Description||G Fund Global Green Bonds|
|Legal status||French-law UCITS (“SICAV”)|
|AMF Classification||Bonds and other securities in euros|
|Benchmark||Bloomberg Barclays MSCI Global Green Bond Index Total Return Index Value Hedged Euros Clôture|
|Type of investment fund||UCITS|
|Bloomberg code||GRPGHMN :FP|
|Total Net Assets||31 M. EUR as on 31/12/2019|
|NAV valuation period||Daily|
|Subscriptions / redemptions||Every working day before 11 a.m., Paris time – NAV unknown – Settlement D+3|
|Maximum management fees (%)||Fixed: 0.70%
|Entry charge(%)||Not paid into the UCITS: 4% maximum
Paid into the UCITS: None
|Redemption charge(%)||Not paid into the UCITS: None
Paid into the UCITS: None
|Custodian bank||CACEIS BANK France|
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