“More than ever before, governments, supranational institutions, and corporations across the world are looking to fund important environmentally friendly initiatives that allow them to both improve their eco-footprint as well as ensure their operations will be in-line with the expanding rigors of environmental regulation,” said Steve Hawkins, CEO of Horizons ETFs. “HGGB’s global mandate offers access to income from those eco-conscious organizations helping to lead the charge towards a greener future.”
HGGB will allow Canadian fixed income investors to deploy their capital to the largest global issuers of green bonds. These bonds provide many of the traditional benefits of fixed income investing, including generating income and providing important portfolio diversification. In the case of green bonds, there is the added benefit of ensuring that the capital that investors lend indirectly by buying the ETF is used to fund important environmental initiatives around the world.
“Organizations that fail to adapt to the impacts of climate change may face greater business challenges and could ultimately represent a greater risk within a portfolio because of it,” added Hawkins.
“Conversely, those that proactively prepare are more likely to be better situated to ‘weather the storm’, protecting their operations and helping to preserve the environment for years to come. These organizations offer arguably more ethical and potentially more sustainable sources of portfolio income for investors. HGGB gives Canadian investors the ability to potentially improve the climate risk metrics of their global fixed income exposure, while also feeling good about doing so, knowing they are directing their investment dollars toward a greener future.”
The Horizons ETFs product family has approximately $18 billion of assets under management and 93 ETFs listed on major Canadian stock exchanges.