18 Sep 2020

Going green in a fixed income portfolio

goinggreen

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FOR QUALIFIED INVESTORS ONLY– This document is reserved and must be given in Switzerland exclusively to Qualified Investors as defined by the Swiss Collective Investment Scheme Act of 23 June 2006 (as amended from time to time, CISA).

Newsflow on green investing saw some major development last week. The influential investor group Climate Action 100+ wrote to the largest greenhouse gas emitters in the world, urging them to put in place a “net-zero strategy” for 2050 or earlier. This ambition would effectively mean significantly reducing overall corporate emissions to zero, including ‘Scope 3’ emissions coming from their full value chain of activities.

The European Commission also stepped up their game, announcing they would ramp up their target to cut emissions by 55% by 2030, up from their original target of 40%.

Green bonds financing eco-friendly projects could be well placed to benefit from this shift to decarbonisation, and a world striving to align with the most ambitious goal of the Paris Agreement – a global warming limit of 1.5°C above preindustrial levels.

In our latest Expert’s View, we give an update on the market, discuss how green bonds compare to traditional ones, and share our views on the ‘greenium’ debate on green bond pricing.

Learn more about our Green Bond ETF range

Important information

This document has been provided by Lyxor International Asset Management that is solely responsible for its content.

MULTI UNIT LUXEMBOURG – Lyxor Green Bond (DR) UCITS ETF - Acc, domiciled in Luxembourg, MULTI UNIT LUXEMBOURG – Lyxor Green Bond (DR) UCITS ETF - Monthly Hedged to EUR - Acc,domiciled in Luxembourg, (Registered Funds) are collective investment schemes approved by the Swiss Financial Market Supervisory Authority FINMA (FINMA) as foreign collective investment schemes pursuant to article 120 of the Swiss Collective Investment Schemes Act of 23 June 2006 (as amended from time to time, CISA) for distribution in Switzerland to non-Qualified Investors as defined in the CISA. The above mentioned Exchange Trade Funds (ETFs) are listed on the BX Swiss.

MULTI UNIT LUXEMBOURG – Lyxor Green Bond ESG Screened (DR) UCITS ETF - Acc , domiciled in Luxembourg (non-Registered Fund, and together with the Registered Funds, the Funds) is a collective investment scheme not approved by the FINMA as a foreign collective investment scheme pursuant to article 120 of the CISA for distribution in Switzerland. Accordingly, the non-Registered Funds may be offered in Switzerland exclusively to Qualified Investors as defined in the CISA and its implementing ordinance.

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This document does not contain personalized recommendations or advice and is not intended to substitute any professional advice on investments in financial products.

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