The Man Climate Transition Impact Bond has scooped the Global ESG fixed income fund of the year award after just a year after launch due to its novel science-led investment approach.

A Sustainable Investment Awards judge praised the $22 million fund for its "innovative approach" to global transition investing. The fund utilises a unique science-based framework developed by Man and the Columbia Center on Sustainable Investment called the Climate Allocation Compass Framework for Real World Decarbonisation (Compass-FRWD).

The approach "repurposes" integrated assessment models (IAMs), which are traditionally used for climate policy assessment, to "translate" emissions gaps against 2050 net-zero scenarios in practical investment priorities.

Man explained this means the fund "targets sectors with the highest emissions reduction potential, embraces strategic engagement over divestment and sets the tone for fixed-income investing, which intends to deliver true impact".

The judges were also impressed by the "strong start" the fund has made since it was launched in January 2024. As of the end of April, the fund has returned 8.5% compared with 7.2% for its ICE BofA Green Bond Index benchmark.