Robeco launches its first sustainable climate high yield bond fund

by | Sep 13, 2023

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Robeco has announced today that its Climate Global High Yield Bonds strategy is aimed at actively lowering carbon footprints via high yield investments, measured against a Paris Aligned Benchmark by Solactive.

The strategy harnesses the potential sustainability impact of asset owners, from a bondholder’s perspective. Robeco’s new Climate High Yield Bonds fund is therefore particularly suitable for the strategic asset allocation of pension funds, insurance companies as well as retail investors.

 
 

The fund builds upon Robeco’s record of accomplishment as a fixed income manager within high yield and climate related strategies, such as climate credits and climate global bonds. Robeco is the first asset manager that offers this combination. So far, the fund has already raised 125 million seeding customers from the start and expects more asset raising in the coming years.

Increasing numbers of asset owners are committing to the Paris Agreement, striving to reduce carbon footprints through their managed assets. The high yield sector traditionally tends to have a higher carbon footprint compared to investment grade bonds due to its sector composition and industry focus. The strategy aligns with the European Union’s Sustainable Finance Disclosure Regulation (SFDR) and is classified as Article 9 under SFDR. The strategy also contributes to a 7% reduction in overall emission intensity in the portfolio, on a yearly basis. Moreover, it starts with a 50% lower carbon intensity than the current investment universe and excludes fossil fuel [related] activities. 

Sander Bus, Manager High Yield at Robeco: “Robeco’s Climate Global High Yield Bonds strategy naturally fits our sustainable investment philosophy. We believe in safeguarding economic, environmental, and social assets to ensure a healthy planet where people can thrive for generations to come. We provide solutions to our clients wherever they are on their sustainability journey. This new strategy offers access to the high yield market with a significantly lower carbon impact than traditional high yield products. Our quality-tilted investment approach coupled with climate-focused considerations make our Climate Global High Yield Bonds a unique and impactful choice.”

 

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