Launched in July, 2020, and seeded by the Growald Family Fund (GFF), AFII is a non-profit think tank/research body to take a markets’ based approach to positive climate impact in fixed income markets. GFF, a part of the Rockefeller family, is a venture philanthropic donor focusing on climate change.
The picture of the green sprouts growing on the trading terminal encapsulates AFII’s basic philosophy: it’s through the buy and sell decisions by bond portfolio managers and traders out there that we could change cost-of-capital in favor of a sustainable future. It’s grimy, technical and quantitative, it’s an everyday struggle for alpha, but fixed income is extremely powerful when you direct it for a sustainable purpose:
“I would like to be reborn as the bond market, because you can intimidate anybody” to quote political pundit James Carville.
The idea for AFII came from a number of lectures ‘Fixed income in the Anthropocene’ conducted over the course of 2019, and has been propelled into an independent organization by generous philanthropic seed funding. Earlier work, before the inception of the AFII, includes contributions to organisations such as GARP (Global Association of Risk Professionals) and the CFA (Chartered Financial Analyst). AFII is currently based in Stockholm, but has a global market focus.
Ulf Erlandsson is the founder and Executive Chair of AFII. He comes from a background as a credit portfolio manager at the Fourth Swedish State Pension Fund (AP4) and as a quant strategist at Barclays Capital. He was one of the pioneers in the green bond market as well as in high-frequency credit derivative trading and has written extensively on credit trading, climate impact in fixed income and the combination thereof over the past 15 years. He earned his Ph.D. in Economics from Lund University.
AFII is currently building out the organisation and we will update with team details accordingly. A slightly longer description is available through NordSIP's article "Erlandsson and GFF Launch the Anthropocene Fixed Income Institute."