International asset manager Robeco announced today the launch of two new actively managed climate-focused fixed income strategies, RobecoSAM Climate Global Credits and RobecoSAM Climate Global Bonds. According to Robeco, the new strategies are the first global fixed income strategies to be fully compliant with the EU benchmark regulation for Paris-aligned investments.
Victor Verberk, CIO Fixed Income and Sustainability at Robeco, said:
“As global leader in sustainable investing we are very committed to the Paris Agreement. In fact, we recently announced our ambition to achieve net-zero greenhouse gas emissions by 2050 across all of our assets under management. Launching these strategies and making them available to our clients is a clear example of our strong conviction that investing is not only about creating wealth but also about contributing to wellbeing. It provides investors with the opportunity to be at the forefront of the transition to a low-carbon economy. These strategies bring to life our commitment to the Paris Agreement, combine our leading global position in sustainable investing with our long history and expertise in fixed income, and are a further step in our efforts to combat climate change and lower the carbon footprint of our investments.”
The strategies will be measured against newly created climate indexes, developed jointly by Robeco and index engineering company Solactive. The new indices introduced by Robeco and Solactive include both corporate and government debt benchmarks, with the corporate bond indices exceeding the requirements of the European Commission for Paris Aligned Benchmarks, and the government bond index incorporating a 7% annual self-decarbonization trajectory.
Timo Pfeiffer, Chief Markets Officer at Solactive, said:
“Providing world’s first Paris-aligned fixed income indices for a renowned client such as Robeco is a great honor for us, and we are very happy that we were able to contribute with our innovative indices to a greener economy. As we expect investors’ demand in the ESG space to rise steadily, we regard Robeco’s approach as a very important flagship project concerning our society’s future and a clear statement for sustainability.”
The RobecoSAM Climate Global Credits fund will invest globally in corporate bonds with explicit climate targets that contribute to the goals of the Paris Agreement. The strategy kicks off with a 50% lower carbon footprint than the broader corporate bond market, and aims to decarbonize 7% per year. The fund will be measured against a cumulated benchmark composed of three Solactive Corporate IG PAB Indices with three different currencies, including Euro, GBP, and USD. The strategy will be managed by Victor Verberk, Reinout Schapers and Peter Kwaak from Robeco’s Global Credit team.
The RobecoSAM Climate Global Bonds fund will consist of a global aggregate portfolio of fixed income assets, with the strategy aiming for a lower carbon footprint relative to the global investment grade bond universe and an average of at least 7% decarbonization per annum. The strategy will be benchmarked against the Solactive Paris Aware Global Government Bond Index, which includes government bonds issued by Investment Grade rated countries. It will be managed by Jamie Stuttard, Regina Borromeo and Bob Stoutjesdijk from Robeco’s Global Fixed Income Macro team.