The expansion of the Kairos Group’s range continues and a new product is launched: KIS Active Bond ESG. Managed by the Fixed Income team, the portfolio managers are Rocco Bove and Andrea Ponti. The product combines their many years of experience in fixed income with ESG factors and in particular follows the flexible approach to sustainable investment launched last November with KIS ActivESG, one of the first long-short ESG solutions available on the Italian market.
Kairos’ decision to offer its private and institutional clients a product focused on green bonds is based on the developments in this market in recent years. In fact, ESG factors are increasingly integrated into investment processes and strategies and this also applies to the bond market, aware of the importance of these factors in promoting positive social and environmental change, increasingly enhanced also by recent decisions by the European Central Bank.
KIS Active Bond ESG has the same management style as the KIS Bond Plus product, which boasts a solid track record: born in 2011 and always managed by the same team, this product has recorded a performance since launch of +59,01% against the reference index of 1.42%, while in the difficult year 2020 it recorded a performance of + 8.13% against the reference index of -0.28% (Source: Kairos data processing on Class P. Period 04.11.2011 – 30.11 .2020 and 01.01.2020 – 30.11.2020. Past performance is not indicative of future performance)
The construction of the KIS Active Bond ESG portfolio and the investment process follow the same logic adopted for the entire ESG range of Kairos, i.e. an active management with a bottom-up and top-down approach based on fundamental analysis and supported by quantitative analysis. Kairos leverages research from Sustainalytics, a global leader in ESG research and ratings, to integrate ESG factors into investment processes.
KIS Active Bond ESG is a product that allows investment in the innovative theme of Corporate and Financial ESG bonds and Green and Sustainability bonds, taking advantage of a totally flexible strategy in the bond world with a focus on the European corporate market, but with a global vision. It is a very useful product for the diversification of the bond portfolio as it has rather low levels of correlation with the main bond indices.
The main objective of management is to deliver to investors a product with an efficient risk / return ratio with particular attention to safeguarding the capital in the medium term.
“We are proud to be among the first who can offer their customers such an innovative product”, comments Rocco Bove, Head of Fixed Income and continues “a flexible solution that can be defined at the limit of long-short, but focused on the world of credit. We believe this is an excellent investment opportunity, given that sustainable investments represent a structural trend, now confirmed by the ever-increasing flows directed into this type of solutions. ”