BlueBay Asset Management is the second firm this week to launch an ESG fixed income product, following Deutsche Asset Management.
The firm has launched the Global High Yield ESG Bond Fund, which it says is in response to client demand for greater incorporation of environmental and social governance (ESG) into fixed income strategies.
The firm has been working with global investment consultants Mercer and Nordic pension fund PKH. They wanted to establish an investment strategy focused on investment returns in the high yield space whilst including ESG analysis.
The ESG investment strategies have been developed by BlueBay and incorporates the ESG investment policy of the (Norwegian) Government Pension Fund Global managed by Norges Bank.
These strategies encompass product-based screening (negative screening covering controversial weapons, tobacco and coal-based energy), conduct based screening (drawing on the UN Global Compact initiative) and integration and engagement.
“We believe the incorporation of ESG into investing is important and relevant as such factors can have economic and investment impacts,” said Mariann Bendriss, chief financial officer at PKH.
BlueBay has $57.8 billion (€54.1 billion) in assets under management.
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