Allianz Green Bond

The fund invests into green bonds, which are bonds raised to finance projects meeting specific environmental criteria. Allianz Green Bond is one of the first funds focusing on this relatively new and fast growing asset class.

The fund invests in a minimum of 85% green bonds, the proceeds of which are exclusively assigned to finance projects, assets and business activities labelled as green in sectors such as energy efficiency, pollution prevention, renewable energy, clean transportation or water management. The process also screens out controversial companies as well as projects which are ‘green washed’ – projects which are described as green but are in fact continuations of projects not meeting the green criteria.

The process is focused on bottom up selection of strong credit names with a stable to positive outlook, whilst assessing their price versus fair value to determine how cheap the bond is trading.

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