Quaero Capital on 30 January announced the of Quaero Capital Funds (Lux)--Bond Investment Opportunity, a new bond sub-fund of its Luxembourg société d’investissement à capital variable (Sicav) Quaero Capital Funds (Lux). The fund mainly invests the debt markets of OECD member countries and incorporates ESG criteria, said a press release published by the firm.

“The fund is a good illustration of our belief that the cyclical nature of the financial markets is a source of opportunities for fixed-income products, which explains our flexible approach,” commented Xavier Nicolas, one of the fund managers, in the communiqué. “It is a bond solution that is close to the real economy, thanks to our focus on ESG principles and our commitment to social green bonds, which have a specific sustainability objective.”

The fund, which aims to to invest 30% of its assets in green social bonds, is managed using a “strict methodology” and includes the assessment of four indicators aligned with the United Nations’ Sustainable Development Goals, said the press release. It is classified as an article 8 fund under the Sustainable Finance Disclosure Regulation (SFDR), which means it promotes environmental and/or social characteristics, and has received the French government’s socially responsible investing (SRI) label.

Nicolas, Frédéric Loisel and Philippe Scemama have been managing a similar strategy since January 2022 in the form of a specialist professional fund under French law, added the firm, with the strategy now available in Luxembourg Ucits (undertaking for collective investment in transferable securities) format.