Global investment manager Schroders and impact investment manager BlueOrchard announced today the launch of the Schroder ISF BlueOrchard Emerging Markets Climate Bond fund, a new climate-focused UCITs impact strategy targeting positive environmental change in emerging markets.
According to Schroders and BlueOrchard, the new fund will invest in mainly emerging markets green bonds, and will also allocate to sustainability and sustainability-linked bonds, whose outcomes are tied to the financing of social projects, as well as environmental initiatives.
Michael Wehrle, Head of Investment Solutions, BlueOrchard, said:
“Delivering green finance for emerging markets is key to building a low carbon world of the future. Green bonds represent a powerful opportunity to pursue positive environmental change, while also earning attractive fixed income returns.
“Investing in these growing opportunities will not only mean investors are contributing to a lasting positive impact to climate change mitigation in markets with the fastest growth, but are also delivering robust performance for their portfolios.”
The launch marks a continuation of Schroders’ focus on ESG and impact investing. Schroders acquired a majority stake in microfinance and impact investing specialist BlueOrchard in 2019, and earlier this year announced that it is joining the Global Impact Investing Network (GIIN), the “global champion” of impact investing, dedicated to increasing its scale and effectiveness around the world. In January, Schroders announced the completion of its process to integrate ESG factors into the decision-making across all investments that the firm manages, and stated that it would next look to understand the impact of its investments and the risks they face as a result.
Carolina Minio Paluello, Global Head of Product, Solutions & Quant, Schroders, said:
“As investors, we can create change in the world by the way we direct capital, putting it into areas that can generate positive impacts.
“This new fund will enable us to leverage our expertise and knowledge within public and private markets to maximise our investment impact across emerging and frontier markets to best meet the investment objectives of our clients.”