Schroders today announces it has continued to grow its sustainable and impact fund suite with the launch of the Schroder Sustainable Bond fund, designed to provide investors with long-term diversified returns through sustainable investment across the full spectrum of global fixed income markets.
The fund, managed by Schroders Global Fixed Income and Currency team, will harness Schroders well-established top-down thematic fixed income investment process to invest in both sovereign and corporate debt across developed and emerging markets.
At the core of the strategy is an innovative approach to defining a sustainable investment universe of sovereign markets. Countries targeted for investment include those making appropriate progress towards meeting the United Nations Sustainable Development Goals, those with explicit net zero policies, and those whose political and civil freedoms are supportive of sustainable growth,.
The fund will also draw on Schroders’ recognised expertise in sustainable credit, and integrate the firm’s proprietary, award-winning investment tool SustainEx, now further enhanced to score sovereign and supranational issuers as well as corporates.
It will aim to deliver a total return of 2.5% per annum over the ICE BofA Sterling three-month Government Bill index, net of fees, over a three-to-five year cycle.
Paul Grainger, Head of Global Fixed Income and Currency, Schroders, commented:
“Our clients are increasingly asking to access sustainable investment opportunities across the full range of their assets, including government and supranational bonds as well as corporate bonds and equities.
“For the Schroder Sustainable Bond Fund, we have developed a rigorous and transparent methodology for analysing sovereign sustainability. This complements our well-established sustainable credit approach and allows us to build holistic fixed income portfolios, which can provide our clients with long-term and diversified sustainable returns.”
Andy Howard, Head of Sustainability, Schroders, also commented:
“Our clients increasingly recognise that the potential impact of sustainability risks and opportunities extends beyond the corporate world. This new fund not only invests in corporate bonds but also incorporates sovereign securities based on their ESG-related strengths and opportunities, recognising the key role that governments play in shaping the sustainability trajectory of individual countries.”