switzerlanden
Buy-and-maintain credit: sustainability matters

Buy-and-maintain credit: sustainability matters

12-11-2019 | Insight

Sustainable investing is designed to sort future-proof companies from those that are not. It is an essential aspect of successful credit portfolio management. Due to their medium to long-term investment horizon, buy-and-maintain strategies inherently are focused on identifying sustainable companies – those investments that will survive and thrive over long time periods.

  • Remmert Koekkoek
    Remmert
    Koekkoek
    Head of Insurance and Pension Solutions
  • Guido Moret
    Guido
    Moret
    Head of Sustainability Integration Credits
  • Yvo Schoemaker
    Yvo
    Schoemaker
    Portfolio Manager

Speed read

  • Buy and maintain a perfect match with sustainability
  • ESG integration as an important risk-mitigation technique
  • Bespoke solutions targeting client-specific sustainability goals

Risk mitigation with ESG integration

Insurers and pension funds face the imperative of finding investment solutions that generate sufficient returns, all while managing risk in a world of low yields, market uncertainty and softening growth. Increasingly, these investors are incorporating their sustainability goals into their investment objectives.

ESG integration is an important risk-mitigation technique for any credit manager, especially now that the credit cycle is approaching a stage in which the risk of defaults and downgrades is increasing. Sustainable investing, which is designed to sort the future-proof companies from those that are not, is an essential aspect of successful portfolio management for buy-and-maintain credit portfolios.

ESG integration is an important risk-mitigation technique for any credit manager

Further, buy-and-maintain investors are able to optimize their ESG integrated portfolios to meet their own specific sustainability goals and requirements such as reducing the carbon footprint of a portfolio or creating an impact investment that targets the UN Sustainable Development Goals.

Sustainability is a natural fit for portfolios with a long horizon

The inherent focus on risk management, long-term stability and the bespoke nature of the investment style make it a natural fit with sustainable investing, and thus with integrating sustainability considerations at the time of the investment.

In fact, one of the most important observations of the European Commission’s High-Level Expert Group for sustainable finance is that sustainability and the long term are axiomatically linked, since investment in sustainable development requires a longer-term commitment of capital, beyond near-term profits.

Stay informed on our latest insights with monthly mail updates
Stay informed on our latest insights with monthly mail updates
Subscribe

An integrated component of the credit management process

Our approach to buy-and-maintain portfolio management is to incorporate sustainability from the starting point. We apply our skills in sustainable investing, credit research and client-driven portfolio optimization to provide our clients with an optimal and bespoke long-term solution.

Robeco has a long history in buy-and-maintain investing, helping many clients to achieve their unique objectives over long timeframes. With our in-house combination of insurance and pensions analytical capabilities, our market-leading global credit platform and our pioneering role in sustainable investing, we are able to design high quality and truly client-driven credit portfolios. Clients are involved in each step, making this a true partnership.

Leave your details and download the report

Disclaimer:

This report is not available for users from countries where the offering of foreign financial services is not permitted, such as US Persons.

Your details are not shared with third parties. This information is exclusively intended for professional investors. All requests are checked.

Logo

Important legal information

The content displayed on this website is exclusively directed at qualified investors, as defined in the swiss collective investment schemes act of 23 june 2006 ("cisa") and its implementing ordinance, or at “independent asset managers” which meet additional requirements as set out below. Qualified investors are in particular regulated financial intermediaries such as banks, securities dealers, fund management companies and asset managers of collective investment schemes and central banks, regulated insurance companies, public entities and retirement benefits institutions with professional treasury or companies with professional treasury.

The contents, however, are not intended for non-qualified investors. By clicking "I agree" below, you confirm and acknowledge that you act in your capacity as qualified investor pursuant to CISA or as an “independent asset manager” who meets the additional requirements set out hereafter. In the event that you are an "independent asset manager" who meets all the requirements set out in Art. 3 para. 2 let. c) CISA in conjunction with Art. 3 CISO, by clicking "I Agree" below you confirm that you will use the content of this website only for those of your clients which are qualified investors pursuant to CISA.

Representative in Switzerland of the foreign funds registered with the Swiss Financial Market Supervisory Authority ("FINMA") for distribution in or from Switzerland to non-qualified investors is ACOLIN Fund Services AG, Affolternstrasse 56, 8050 Zürich, and the paying agent is UBS Switzerland AG, Bahnhofstrasse 45, 8001 Zürich. Please consult www.finma.ch for a list of FINMA registered funds.

Neither information nor any opinion expressed on the website constitutes a solicitation, an offer or a recommendation to buy, sell or dispose of any investment, to engage in any other transaction or to provide any investment advice or service. An investment in a Robeco/RobecoSAM AG product should only be made after reading the related legal documents such as management regulations, articles of association, prospectuses, key investor information documents and annual and semi-annual reports, which can be all be obtained free of charge at this website, at the registered seat of the representative in Switzerland, as well as at the Robeco/RobecoSAM AG offices in each country where Robeco has a presence. In respect of the funds distributed in Switzerland, the place of performance and jurisdiction is the registered office of the representative in Switzerland.

This website is not directed to any person in any jurisdiction where, by reason of that person's nationality, residence or otherwise, the publication or availability of this website is prohibited. Persons in respect of whom such prohibitions apply must not access this website.

I Disagree