BlueBay’s My-Linh Ngo to Co-Manage New Fund with Tom Molds and Harrison Hill
BlueBay Asset Management has launched an aligned impact bond fund investing in liquid government debt markets, giving investors the ability to invest “positively” in fixed income securities.
The specialist fixed income manager said his new fund will focus on companies whose core economic activities help address global environmental and social challenges, such as climate change and inequality, around its seven themes of durability.
The BlueBay Impact-Aligned Bond Fund will invest primarily in investment grade corporate bonds from developed markets, as well as high yield and emerging market bonds.
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Its sustainable development themes are divided into the following themes:
• People / social themes, such as achieving an inclusive society, building knowledge and skills and ensuring good health, safety and well-being.
• Global / environmental themes, including enabling a circular economy, ensuring clean and abundant water, promoting clean and safe energy, and promoting sustainable mobility and infrastructure.
The new sustainability-themed UCITS fund will be managed by Partner and Senior Portfolio Manager Tom Molds, as well as My-Linh Ngo, Head of ESG Investments and Portfolio Manager at BlueBay, and Portfolio Manager Harrison Hill.
Molds said: “To invest thematically, manage risk and focus on generating strong investment returns, we have improved our approach to portfolio construction. Starting by expanding the scope of the fund to include a global universe, we then let go of the constraints of being linked to a benchmark.
“Ultimately, our focus is on finding companies that provide solutions to our sustainability themes while offering compelling valuations, and this flexible approach to investing allows us to do just that.”
The new fund is classified under Article 9 of the Sustainable Finance Disclosure Regulation (SFDR).
Ngo added: “To date, this style of investing has been largely confined to listed equities. Expanding this opportunity to fixed income securities is essential from a sustainability perspective. On the one hand, the Absolute size of the debt market eclipses that of stocks, so from our perspective if you want to have an impact you have to think beyond just stocks.
“In addition, we see that many of the activities that need to be funded to enable the transition to sustainability will be more attractive to bond investors than to equities.”
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BlueBay said the launch of the fund, along with two ESG sister funds to its existing investment grade funds, the BlueBay Investment Grade ESG Bond fund and the BlueBay Absolute Return ESG Bond fund, add to its range of investment-oriented strategies. ESG.
The other two strategies will be classified under article 8 of the SFDR.
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