Jupiter today announces the launch of the Jupiter Global Ecology Bond fund (SICAV), building on the company’s longstanding heritage of environmental investing expertise. A portfolio of global corporate bonds issued by companies that focus on making a positive impact towards environmental and sustainable objectives, the fund will be classified as Article 9 under the EU Sustainable Finance Disclosure Regulation (SFDR).
Managed by Jupiter’s Head of Environmental Solutions, Rhys Petheram, the fund will target robust, long-term investment opportunities in companies whose core economic activities contribute to addressing global environmental sustainability challenges, with a particular focus on climate change mitigation and natural capital and biodiversity restoration.
The fund will have the flexibility to invest in both labelled and unlabelled bonds – including green, sustainability, social, or sustainability-linked/sustainability awareness bonds – and conventional bonds, all assessed using strict sustainability criteria and a rigorous, industry-leading verification process. Under normal market conditions, it is expected that the fund will comprise around 60 to 90 holdings and while it has the flexibility to invest across the credit spectrum, its overall average rating is expected be investment grade.
A recognised thought-leader in environmental fixed income investments with over 20 years’ experience across fixed income and multi-asset portfolios, fund manager Rhys Petheram has been a key player in the development of the green bond market, engaging with industry bodies and issuers in pursuit of a more ambitious and impactful market. As a specialist in the field, Rhys has been a key contributor to CFA Society UK’s new Certificate in Climate & Investing, as part of the authoring team for the chapter on listed investment instruments.
Working alongside equities fund manager Jon Wallace, Rhys has managed the corporate bond segment of the mixed-asset Jupiter Global Ecology Diversified Fund since inception in 2016. In running the Jupiter Global Ecology Bond fund, Rhys will be supported by his team of dedicated thematic environmental investment experts, alongside Jupiter’s 26-strong fixed income team.
“2021 was a record-setting year for green finance with issuance of labelled sustainability bonds topping $1 trillion for the first time. The scale of change required to reverse global warming is creating significant opportunities to support companies which provide products and services critical to achieving sustainability targets, and the growing environmental solutions universe is now setting the pace for policy and regulation.
“Amid increasing global collaboration, we expect these solutions will spread widely to as-yet unpenetrated sectors of the global economy, creating a multi-decade investment opportunity that we believe we are well-positioned to identify and capture in this new fund.”Rhys Petheram, Head of Environmental Solutions
“History and experience really do matter in this space. Jupiter was one of the first companies to launch an environmental fund nearly 35 years ago, and the first to launch a green multi-asset thematic fund in 2016. When the first corporate green bonds were issued in 2012, Rhys was one of the first investors at the table, and in the years since he has been instrumental in shaping the green bond universe as we know it today.
“Rhys and his team have a thematic approach to investing that is truly unique among fixed income funds, and we are delighted to be launching this fund to allow our clients greater access to his unparalleled investment expertise in this field.”Warren Tonkinson, Deputy Global Head of Distribution