Robeco has launched its Sustainable Asian Bonds strategy, a sustainable development goal (SDG)-aligned bond strategy investing in diversified Asian fixed income, that seeks to provide long-term capital growth and offers an attractive yield.
The strategy taps into a growing investment universe in some of the fastest growing economies, with exposure predominately in companies that are contributing to the United Nations’ SDGs. The Asian bond market has a liquid and mature universe of quality issuers whose debt is denominated in hard currency representing attractive investment prospects.
Additionally, the Asian bond market offers a rich and increasing supply of social, sustainable and green bonds as the region ramps up its ambitions in financing the transition to a more developed and sustainable future.
The strategy, which follows an active approach with the flexibility to take off-benchmark positions, invests in quality, hard-currency Asian corporate and sovereign bonds and targets a dividend yield of 4% to 6% per year throughout the cycle.
The fund, which aims to outperform the JP Morgan Asia Credit Index, is part of Robeco's strategies that are managed using its SDG framework, with assets under management of over €10 billion (US$10.5 billion).
Thu Ha Chow, who was recently appointed head of fixed income in Asia for Robeco, is the fund’s lead portfolio manager. Reinout Schapers, who is responsible for the global credit funds and sustainable emerging credit strategy, is the fund’s co-portfolio manager.
Chow says: “The Asian fixed-income market has a crucial role to play in financing the transition to a sustainable future.”