Ameriprise Financial says socially responsible investors don't have to trade investment performance at the expense of their principles.
Those investors now have another investment choice. The Minneapolis-based institution's global asset management group, Columbia Threadneedle Investments, launched the Columbia U.S. Social Bond Fund on March 26.
Ameriprise said the Columbia fund is a first-of-its-kind municipal product that uses a mix of environmental, social and governance (ESG) criteria as the basis for its investments.
James Dearborn, Thomas Murphy and Chad Farrington are portfolio managers for the fund.
Murphy, head of global investment grade credit, said companies that adhere to ESG principles are mindful of sustainability, environmental impact, social responsibilities to workers and consumers and adhere to best governance practices and will be good for shareholders and bondholders.
"Simple, simple concepts around ESG, where keeping yourself out of the news, keeping yourself out of trouble are going to lead you to better returns," Murphy said. "Things like energy efficiency or recycling can lead to better margins."
Dearborn, the head of municipal bonds at Columbia Threadneedle Investments, is confident that the fund will perform well.
"We have great confidence that, investing in sectors that benefit health care, education, the environment, housing, we are not giving up performance opportunities," he said.