Robeco has launched a High Income Green Bonds strategy, making them one of the first asset managers to bring an Article 9, High Income Green Bonds strategy to the credit market. According to Robeco, this new strategy is managed with a benchmark-agnostic, global approach across all credit sectors within green bond investments.
The High Income Green Bonds strategy is designed to respond to growing investor interest in the broad variety of green bonds. In 2023, green bonds were the driving force behind the overall growth of the global ESG-labeled bond market, representing a share of more than 60% of ESG bond sales. Green bonds are a clean transition investment instrument. Proceeds from green bond issues are earmarked for environmental projects that promote greener practices, supporting transitioning companies in their decarbonization efforts as the investment landscape evolves.
Robeco determines whether a bond is eligible for their investment universe by applying specific steps from Robeco’s five-step green bond framework. All green corporate bonds must successfully pass these steps. The portfolio manager then decides whether to include the eligible green bond based on their investment view and in line with the portfolio’s credit investment process.
Joop Kohler, Head of Credits for Robeco said: “Robeco’s High Income Green Bonds strategy is our first strategy focusing purely on green bonds from corporate issuers. It successfully combines the depth of our sustainability expertise with the long-standing track record and capabilities of our credit team. With the growing interest in transition investing, our High Income Green Bonds strategy meets the dual objective of sourcing attractive income for our clients, whilst providing a core tool for investors to achieve their impact goals. This could mean aligning with regulatory-driven investment objectives or contributing to a more meaningful impact through targeted investments that support sustainable transitions.”
