Robeco launches Article 9 climate global high yield bond fund

High yield sector traditionally tends to have a higher carbon footprint

Green energy for clean and sustainable environment. Wind energy used in the industry of factories, machines and technologies. Reducing Co2 emissions and limiting global warming and climate change.

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Laura Miller

Robeco has launched its first Article 9 sustainable climate high yield fund.

The 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 uses the potential sustainability impact of asset owners, from a bondholder’s perspective.

It is suitable for the strategic asset allocation of pension funds, insurance companies as well as retail investors.

The fund builds upon Robeco’s range within high yield and climate-related strategies, such as climate credits and climate global bonds.

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.

But the Robecco Climate Global High Yield Bonds Fund contributes to a 7% reduction in overall emission intensity in the portfolio, on a yearly basis.

It also starts with a 50% lower carbon intensity than the current investment universe and excludes fossil fuel and related activities.

Sander Bus, manager for high yield at Robeco, said: “We believe in safeguarding economic, environmental, and social assets to ensure a healthy planet where people can thrive for generations to come.

“This new strategy offers access to the high yield market with a significantly lower carbon impact than traditional high yield products.”