Threadneedle (Lux) European Social Bond

This is a marketing communication. Please refer to the prospectus of the UCITS and to the KIID before making any final investment decisions.

At a glance

This investment grade credit fund unlocks the full potential of bonds to deliver both financial returns and positive social outcomes.

Key facts

SFDR
Article 8*

Fund Inception date:
23 May 2017

Fund Manager
Simon Bond

Benchmarks notes:
Composite index comprising: 50% ICE BofA Euro Non-Sovereign; 50% ICE BofA Euro Corporate Euroland Issuers
logo ESG
Source: LuxFLAG valid until 30 September 2022
Duurzaamheid towards sustainability logo

Source: Towards Sustainability valid + 2021

Investing in positive social outcomes

We invested in organisations and bonds delivering and enabling tangible impact.

The decision to invest in the promoted fund should also take into account all the characteristics or objectives of the promoted fund as described in its prospectus. The fund’s sustainability related disclosures can be found here.

Annual Social Impact Report

PDF

Annual Social Impact Report

We believe in

Social Investing Horizontal

Key reasons to invest

  1. Innovative approach:  Using a dynamic social research methodology to guide investment decisions, the portfolio manager actively sources bonds that combine clear social benefits with sound financial attributes.
  2. Strength in partnership: Our strong reputation across both fixed income credit and social investment is enhanced by our social partnership with INCO Group1, an organisation focused on the European social economy and a leader in assessing sustainable social businesses.
  3. Proven track record in social bond investing: We have successfully managed outcomes-focused social bond strategies since 2013, and have over €1 billion invested in a range of strategies for clients in the UK, Europe and the US.
1INCO operates under the auspices of Europe’s leading social enterprise: Groupe SOS and Le Comptoir de l’innovation

Risks to be aware of

This fund is suitable for investors who can tolerate a moderate level of risk in return for solid returns over a medium-term investment horizon. Investors should read the Prospectus for a full description of all risks.

Investment risks: Investment in debt securities, derivatives and currencies.

Associated risks: The fund may be exposed to additional credit, market, interest rate and liquidity risks due to the nature of investing in debt markets.

Investment approach

Outcome-focused approach aligned with SDGs

We use an outcomes-based approach to deliver both social and financial returns, investing in businesses that have a positive social impact predominantly in Europe, accessing a broad social universe of around 2,000 bonds. We actively source bonds from seven key social development fields, targeting the most beneficial projects in the areas of most need, with geography being a key driver.
Alignment of social bond strategy focus with UN SDGs
The UN launched the Sustainable Development Goals (SDGs) in 2015 as a framework of sustainable development priorities and have emerged as a potential guide for investing towards a more sustainable world for investors and governments alike, by signposting global development priorities.

Social assessment methodology directs investments to positive social outcomes

Eligible investments are ranked both by their impact category and social intensity by our Responsible Investment (RI) analysts. Our Investment Grade credit research analysts ensure investment ideas pass rigorous financial tests for inclusion in the portfolio. We actively engage with company managements to understand how their businesses work and take a proactive role with both corporates and governments in the growth and development of the social bond market.
Social Assessment Methodology

Our social partner, INCO Group, brings its expertise and reputation by deepening the research on the social outcomes of potential investments; reviewing, advising and monitoring our social assessments via a quarterly Social Advisory Panel; and producing an independent annual report.

PDF

Social Investment Guidelines

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Fund Manager

Simon Bond
Director of Responsible Investment Portfolio Management
*The Fund is categorised an Article 8 under the EU Regulation 2019/2088 on sustainability related disclosures in the financial services sector (SFDR) and promote environmental or social characteristics as an objective.

The LuxFLAG ESG Label is valid for the period ending on 30 September 2022. Investors must not rely on LuxFLAG or the LuxFLAG Label with regard to investor protection issues and LuxFLAG cannot incur any liability related to financial performance or default.

Important Information

Important information: Your capital is at risk. Threadneedle (Lux) is a Luxembourg domiciled investment company with variable capital (“SICAV”), managed by Threadneedle Management Luxembourg S.A.. This material should not be considered as an offer, solicitation, advice or an investment recommendation. This communication is valid at the date of publication and may be subject to change without notice. Information from external sources is considered reliable but there is no guarantee as to its accuracy or completeness. The SICAV´s current Prospectus, the Key Investor Information Document (KIID) and the summary of investor rights are available in English and/ or in local languages (where applicable) from the Management Company Threadneedle Management Luxembourg S.A., International Financial Data Services (Luxembourg) S.A., your financial advisor and/or on our website www.columbiathreadneedle.com. These documents are available in Switzerland from the Swiss Representative and Paying Agent RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich branch, Bleicherweg 7, CH 8027 Zurich. Threadneedle Management Luxembourg S.A. may decide to terminate the arrangements made for the marketing of the SICAV. Pursuant to article 1:107 of the Act of Financial Supervision, the sub-fund is included in the register that is kept by the AFM. Threadneedle (Lux) is authorised in Spain by the Comisión Nacional del Mercado de Valores (CNMV) and registered with the relevant CNMV’s Register with number 177. Past performance is calculated according to the BVI method in Germany.

In the EEA and Switzerland: Issued by Threadneedle Management Luxembourg S.A. registered with the Registre de Commerce et des Sociétés (Luxembourg), Registered No. B 110242, 44 rue de la Vallée, L-2661 Luxembourg, Grand Duchy of Luxembourg. In the UK: Issued by Threadneedle Asset Management Limited. Registered in England and Wales, No. 573204. Registered Office: 78 Cannon Street, London EC4N 6AG, United Kingdom. Authorised and regulated in the UK by the Financial Conduct Authority. In the Middle East: This document is distributed by Columbia Threadneedle Investments (ME) Limited, which is regulated by the Dubai Financial Services Authority (DFSA). For Distributors: This document is intended to provide distributors’ with information about Group products and services and is not for further distribution. For Institutional Clients: The information in this document is not intended as financial advice and is only intended for persons with appropriate investment knowledge and who meet the regulatory criteria to be classified as a Professional Client or Market Counterparties and no other Person should act upon it.

Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.

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