Dutch asset manager Robeco has launched a High Income Green Bonds strategy, making it one of the first asset managers to bring such a strategy to the credit market.
The asset manager has shared that the strategy is managed with a benchmark-agnostic, global approach across all credit sectors within green bond investments. It 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.
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Proceeds from green bond issues are earmarked for environmental projects that promote greener practices, supporting transitioning companies in their decarbonisation efforts as the investment landscape evolves. The asset manager determines whether a bond is eligible for its investment universe by applying specific steps from its five-step green bond framework. All green corporate bonds must pass these steps, after which the portfolio manager decides on inclusion based on their investment view and the portfolio’s credit process.
Joop Kohler, head of credits for Robeco, said: “The strategy combines our sustainability expertise with the long-standing track record and capabilities of our credit team. With the growing interest in transition investing, our 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.”
