Green Ash Partners has announced the launch of a sustainable short duration credit fund, which utilises both positive and negative screening.
The Sustainable Short Duration Credit fund seeks to generate "stable risk-adjusted positive returns while minimising drawdowns in a low-yielding environment", offering a benchmark-free product with daily liquidity.
It will invest in investment grade and high-yield bonds that demonstrate "best in class" ESG criteria within their sectors, with a maximum legal maturity of five years, a maximum modified duration limit of two and a half years and an average minimum portfolio rating of BBB-.
A positive screen will see the fund invest in companies that are "taking positive steps" to meet ESG and sustainability goals, while the negative screen will exclude sectors including tobacco, weapons and coal.
The fund is incorporated in Luxembourg and will be registered in the UK "shortly", available to retail investors for an OCF of 0.8% with a minimum investment of £10,000.
Miles Cohen, CEO and co-founder of Green Ash, said: "Green Ash are very excited to expand our product offering and launch our sustainable investment strategy, which uniquely covers both global investment grade and high-yield bonds in the short duration space.
"Developing an investment process that has ESG factors at its heart while covering the whole liquid credit spectrum from investment grade to high yield is particularly challenging.
"The team has worked incredibly hard to deliver a strategy that has sustainability as a core pillar and meets the ever-increasing need for a lower risk, higher yielding short duration credit product."