The Columbia US Social Bond Fund will offer investments in corporate and municipal bonds. The municipal bonds, which will make up the majority of the fund, will cover sectors such as education, healthcare and community services.

The fund qualifies as a municipal bond fund and income generated from municipal bond holdings will be exempt from federal income taxes.

As for corporate bonds, the fund's portfolio managers will review the sustainability and social impact of the issuer’s practices through a proprietary social assessment framework developed with Sustainalytics. 

Sustainalytics, a provider of environmental, social and governance research, will produce an annual independent social impact report for the fund.

The fund will be managed by the group's head of municipal bond investments, James Dearborn, alongside head of municipal bond credit research and senior municipal fixed income portfolio manager, Chad Farrington, and head of global investment grade credit, Thomas Murphy.

“This fund offers investors the potential for competitive after-tax returns that can be used as part of a core fixed income allocation,” said Dearborn.

“We will use the portfolio’s capital to find debt securities that not only meet our rigorous investment standards but also whose proceeds are used to support positive social change.” 

The group launched Threadneedle UK Social Bond Fund, its first fixed income offering targeting positive social outcomes, back in December 2013.

Threadneedle Investments and Columbia Management came together last month to launch its new brand, Columbia Threadneedle Investments, in a bid to drive their global presence.

As of the end of 2014, the group managed $506 billion of assets gloablly.