26th July 2024
Unveiling Sustainable Investment Opportunities in Real Estate and Global Bonds: Mediolanum’s New Art.9 Funds
At Mediolanum International Funds Limited (MIFL) we continuously monitor new trends to capitalize on emerging opportunities. In a market that increasingly values environmental responsibility, we are proud to introduce two innovative Art.9 funds: the MBB Green Building Evolution Fund and the MBB Global Sustainable Bond Fund. These funds embody our commitment to aligning financial growth with global sustainability goals.
Our Sustainable Investment strategies targets sectors poised for profound transformation over the coming decades, driven by global challenges such as climate change and social inequality. By investing in transformative projects like the EU's Green Deal and the US Inflation Reduction Act, we believe that companies addressing today's challenges will become tomorrow's leading entities.
MBB Green Building Evolution Fund
Investing in Sustainable Real Estate
MBB Green Building Evolution is designed for investors seeking to support the transition to a more sustainable building sector. With construction accounting for nearly 40% of global energy-related CO2 emissions1, this fund focuses on sustainable and energy-efficient real estate investments, leveraging the European Green Deal’s commitment of 200 to 300 billion euros annually.
The EU Green Deal
The European Green Deal represents a transformative vision for a carbon-neutral Europe by 2050, targeting critical areas like energy, industry, and buildings. With the construction sector contributing significantly to carbon emissions, there is a substantial push for greener building practices. This initiative unlocks vast potential for investments in energy-efficient real estate, aligning economic growth with environmental sustainability.
Key Highlights:
Government Backing: The EU’s Green Deal directs significant funds into eco-friendly buildings, aiming for a carbon-neutral future by 2050.
Demographic Dynamics: Urban expansion and population growth necessitate new, greener buildings. Our fund, with 30% of assets in industrials and the rest in real estate, is ideally positioned to harness these trends.
Market Momentum: Green buildings offer lower costs and higher values. Investors and consumers are willing to pay a premium for properties with energy efficiency and a smaller ecological footprint.
Investment Innovation: The sustainable real estate market is ripe with opportunity, and Mediolanum's Article 9 fund provides a unique strategy to explore these opportunities.
Green Building Evolution
MBB Global Sustainable Bond Fund
A Pioneering ESG-Focused Fixed Income Solution
The MBB Global Sustainable Bond Fund is MIFL's first sustainable bond fund, designed to generate income while upholding sustainability values. This fund invests in bonds that finance projects with positive environmental and social impacts, meeting the growing market demand for sustainable investment instruments.
The Rise of Sustainable Bonds
Sustainable bonds are pivotal in addressing global challenges, with the market expected to surpass 1 trillion USD in 20242. This surge is driven by the need for impactful investments, supported by transparency and robust ESG criteria. Entities like the World Bank, the European Union, and leading financial institutions are at the forefront, financing projects that foster sustainability and social well-being.
Key Highlights:
Quality Focus: Centred on high yields and top-tier issuers, including national and supranational entities and primarily investment-grade credit. This Article 9 fund is dedicated to projects with tangible, positive impacts.
Global Commitment: Our investments align with the Paris Agreement and the 2030 Agenda, addressing climate action, poverty, inequality, waste, and warming.
Investment Impact: The rise in sustainable investments is driven by the need for impactful actions, with transparency at its core. Green, Social, and Sustainable bonds finance projects that meet specific ESG objectives. The financial and public utility sectors are leading the surge in ESG bond issuance.
Sustainable Bond Definitions:
Green Bond: Issued to finance projects with environmental benefits, such as renewable energy and sustainable building practices.
Social Bond: Raises capital for projects addressing social issues, like affordable housing and improved healthcare services.
Sustainable Bond: Funds projects providing both environmental and social benefits, contributing to overall community and ecosystem sustainability.
In its initial phase, the fund will be managed by Morgan Stanley Calvert, a specialist in sustainable bonds with a proven track record since 2010. There are plans to further diversify by including complementary managers.
Global Sustainable Bond
Explore MIFL's Sustainable Investment Range
Join us in shaping a sustainable future while achieving superior financial performance.
Explore Our ESG Range: Visit the MIFL ESG Page
