As previously reported by InvestmentEurope, Candriam Investors Group has launched an SRI emerging markets bond strategy.
The fund aims to provide investors with exposure to a selected universe of emerging markets countries with sustainable and responsible management.
The SRI screen aims to assess countries on four main areas of sustainable development – human capital, natural capital or the environment, social capital and macro-economic management.
It is Candriam’s belief that the assessment of a country’s sustainability correlates well with the stability of its convergence to developed market economies.
Nicolas Forest, global head of Fixed Income, commented: “This new strategy combines two of Candriam’s strengths: the management of Emerging Markets debt and our in-house SRI analysis. While emerging markets are marked by increased volatility and political risks, the SRI analysis will render one of the most attractive asset classes of the moment also responsible and sustainable.”
Currently, SRI accounts for more than 20% of Candriam’s total assets under management.
The firm which has been invested for 20 years in emerging markets has a combined EM debt and equity AuM in excess of $3bn.
Diliana Deltcheva, head of Emerging Markets Debt, commented on the fund launch: “We believe that an assessment of SRI factors is vital in gauging a country’s long-term development potential and risk profile. We align our views with our level of conviction and investment guidelines, avoid and diversify investment risks and implement the investment strategy according to best execution principles.”
Candriam managed about €100.1bn in assets at the end of September 2016