Robeco launches Article 9 climate global high yield bond fund

High yield sector traditionally tends to have a higher carbon footprint

Robeco has launched its first Article 9 sustainable climate high yield fund.

The Climate Global High Yield Bonds strategy is aimed at actively lowering carbon footprints via high yield investments, measured against a Paris-Aligned Benchmark by Solactive.

The strategy uses the potential sustainability impact of asset owners, from a bondholder’s perspective.

It is suitable for the strategic asset allocation of pension funds, insurance companies as well as retail investors.

The fund builds upon Robeco’s range within high yield and climate-related strategies, such as climate credits and climate global bonds.

The high yield sector traditionally tends to have a higher carbon footprint compared to investment grade bonds due to its sector composition and industry focus.

But the Robecco Climate Global High Yield Bonds Fund contributes to a 7% reduction in overall emission intensity in the portfolio, on a yearly basis.

It also starts with a 50% lower carbon intensity than the current investment universe and excludes fossil fuel and related activities.

Sander Bus, manager for high yield at Robeco, said: “We believe in safeguarding economic, environmental, and social assets to ensure a healthy planet where people can thrive for generations to come.

“This new strategy offers access to the high yield market with a significantly lower carbon impact than traditional high yield products.”