Should investors go global for more impact?

In a world marked by increasing economic inequality and environmental challenges, the need for innovative investment solutions that address both financial returns and societal impact has become ever more apparent. 

Tammie Tang, the portfolio manager leading Columbia Threadneedle Investments’ social bond strategies shares the thought process behind the launch of the CT Global Social Bond Fund. Core to the team’s thinking is the idea that inequality is a global problem.  

The social crisis of the Covid-19 pandemic broadened people’s attention from just purely ‘environmental’ before the pandemic, to encompass some of the consequences of the pandemic, i.e., health, but also education and employment, all of which are social elements. 

Looking to deliver maximum impact is one of the reasons why Columbia Threadneedle is going global with its new strategy. A key benefit to reaching further is the global investing universe gives scope for broader social impact as well as financial returns. 

Tang explains that with the global opportunity set the pool of bonds at their disposal jumps from roughly $0.5 trillion in the UK to $15 trillion globally, which represents a jump from a few hundred issuers to nearly 4,000.  

Meanwhile, PWC’s Asset and wealth management revolution 2022 report noted 84% of institutional investors in Europe plan to increase their allocations to ESG products over the next two years.

(1) Columbia Threadneedle Investments, 30 June 2023