WFAM Climate Transition Global Investment Grade Credit
Wells Fargo Asset Management (WFAM) has launched a climate credit strategy - called the Climate Transition Global Investment Grade Credit, also available to investors in Australia.
The strategy is managed by the WFAM’s Global Fixed Income team and is designed to meet financial objectives for active fixed income investing but with a focus on climate goals.
WFAM says these climate goals include: actively managing security selection to identify those firms that are best placed and prepared to perform through the transition to a low/net-zero carbon world; initially reducing weighted average carbon intensity to at least 30 per cent below the benchmark; and decarbonising portfolios by 2050, if not before.
It also involves engaging with issuers to enhance climate and financial performance.
“At Wells Fargo Asset Management, we believe we must collectively decarbonise the economy to manage climate change in a responsible way. As an asset manager, we believe we can invest deliberately to advance this profound transition and I am therefore proud to announce our Climate Transition Credit Strategy, which is grounded in that philosophy," Deirdre Flood, head of international client group at Wells Fargo Asset Management, said.
In the UK, WFAM has an important initial investor in the UK’s National Employment Savings Trust (Nest), which has converted its existing $US2 billion WFAM allocation to the strategy.