Robeco launches fund targeting sustainability

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MEDIA RELEASE: Robeco has launched a new investment fund for the Australian market which is designed to contribute positively to the United Nations’ Sustainable Development Goals (SDGs), while aiming to provide a monthly income distribution between 4% and 6% for clients.

The Robeco SDG Credit Income Fund is now accessible in the Australian market and applies Robeco’s proprietary SDG assessment framework in screening companies that contribute positively to the SDGs. The SDGs are a call for action embedded in a set of 17 goals and a further 169 targets for government, business and society to collaborate on reducing inequality, eradicating poverty and protecting the environment.

Robeco Australia head Stephen Dennis said: “The launch of the fund in the local market provides investors the opportunity to tap into Robeco’s global expertise in credit investing, and market-leading approach to sustainable investing. Local wholesale and institutional investors are increasingly responding to the sustainability demands of their clients and members, and the ability to access the SDG Credit Income Fund is a development that will be welcomed by them.” 

The Robeco SDG Credit Income Fund is an actively managed global credit strategy that can invest in opportunities across the different segments of the credit market, ranging from investment grade to emerging markets credits, to high yield. It aims to achieve an attractive yield and provide a monthly income distribution of about 4% to 6%, whilst managing downside risk and mapping the impact of the portfolio’s contributions to the SDGs.

The strategy is managed by Robeco’s credit team, which consists of over 30 portfolio managers and credit analysts. Robeco’s credit team manages AUD 57 billion of assets in fundamental and quantitative credit strategies globally and have been fully incorporating ESG analysis in its investment process since 2010.

September 2020 marked the fifth anniversary of the adoption of the SDGs, with Robeco urging the global investment community to do more as part of the wider 2030 Agenda for Sustainable Development. The UN’s “Decade of Action” has kicked off to ensure the SDGs are achieved in the next ten years.

“Sustainable investing is not going away; in fact, it’s only going to continue to evolve and attract further investor demand. Investors are in a unique position to direct capital to companies that provide solutions to sustainability challenges. Robeco’s focus on this area over a long period of time means we’ve been able to refine our processes, and continue to offer investors products that not only generate market-leading returns, but also contribute on a practical level to the objectives of the UN SDGs,” Mr Dennis said.