Robeco and RobecoSAM has launched RobecoSAM Global SDG Credits strategy. This strategy aims to help achieve the United Nations Sustainable Development Goals (SDGs) and to outperform the Bloomberg Barclays Global Aggregate Corporate Index.
The fund leverages on Robeco and RobecoSAM’s long history in Sustainability Investing (SI) and extensive in-house expertise.
The innovative fund uses RobecoSAM’s newly developed and proprietary SDG framework and builds on Robeco’s successful credit capability with its flagship global credit fund. The fund integrates financially material ESG information of the issuers in the fundamental analyses, applies an extensive values-based exclusion policy and will only invest in bonds of corporates which have a positive or at least neutral SDG rating. Besides traditional bonds, the fund will also invest in green bonds with an attractive performance potential. In addition, dedicated active ownership specialists engage with companies on the different SDG themes.
The proprietary SDG framework consists of a three-step approach: firstly, it determines at the extent to which companies’ products and services contribute to the SDGs. Secondly, the analysts confirm that how the firm operates is compatible with the SDGs; and thirdly, a check is done to ensure whether the company has not been involved in controversies such as oil spills, fraud or bribery. The result of this three-step analysis is expressed as an SDG score.
Robeco’s credit analysts and RobecoSAM’s SI analysts have done a mapping exercise of some 450 credits. 62% of the issuers have been assessed as making a positive contribution, and our research has proven that there are more than sufficient issuers to create a well-diversified global credit portfolio that has a positive impact on the SDGs.
The proprietary impact reporting provides a summary of the overall impact of the portfolio compared to the benchmark. The impact reporting is organized into five categories: basic needs, healthy planet, sustainable society, equality & opportunity, and robust institutions.
As of the end of December 2017, Robeco manages €41bn in fixed income, of which €28bn in credits. A dedicated global team of over 30 investment professionals located in Rotterdam, London, New York, Singapore and Hong Kong manages European and global investment grade credit portfolios.