Robeco has introduced its Climate Global High Yield Bonds fund in London, an initiative aiming to reduce carbon footprints via high-yield investments benchmarked against the Paris Aligned Benchmark by Solactive.
The strategy offers insight into the sustainability impact of asset owners when viewed from a bondholder’s standpoint.
Suitable for pension funds, insurance companies and retail investors, the fund complements Robeco’s existing portfolio of fixed-income offerings, including other high-yield and climate-centric strategies.
Thus far, the fund has secured 125 million seeding customers.
It is worth noting that the high-yield sector traditionally has a more substantial carbon footprint than investment-grade bonds, primarily due to its sectoral and industry orientation.
In alignment with the European Union’s Sustainable Finance Disclosure Regulation (SFDR), the fund meets the specifications of Article 9.
It is structured to achieve a 7% yearly reduction in emission intensity and commences with a carbon intensity that is 50% less than the prevailing investment landscape. Notably, fossil fuel-related ventures are excluded from the fund’s purview.
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