BlueBay worked with global investment consultants Mercer and Nordic pension fund PKH to add to its existing approach of ESG investment risk management.
The strategy has been established in a Luxemburg Ucits structure, called the BlueBay Global High Yield ESG Bond Fund, a sister fund to the existing BlueBay Global High Yield Bond Fund.
Norwegian formula
The ESG investment strategies applied to the new offering incorporate the ESG investment policy of the Norwegian Government Pension Fund Global managed by Norges Bank.
These strategies encompass product-based screening, which includes screening for controversial weapons, tobacco and coal-based energy; conduct based screening; integration; and engagement.
Important market development
Raphael Robelin, chief investment officer at BlueBay, said: “BlueBay was founded in 2001 in response to new opportunities in the debt market. Fifteen years on, we believe we are facing the start of another important market development – the application of ESG investment strategies to the debt asset class.”
Mariann Bendriss, chief financial officer of PKH, said: “As asset owners with long term liabilities, it is important we ensure our investments also take a long-term perspective. We believe the incorporation of ESG into investing is important and relevant as such factors can have economic and investment impacts.
“Viewed in this way, ESG is good long-term risk management. In the process, we can also play a role in contributing to sustainable development, something which is also of interest to our beneficiaries.”
