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Green Bonds

Green Bonds

Investing in green bonds to create long-term positive environmental impact

Key points:

  • Targeted impact investing that benefits the environment
  • Proprietary green bonds framework to determine portfolio eligibility
  • Combines our capabilities in global fixed income and sustainable investing

Philosophy

The strategy aims to create positive environmental impact, whilst generating outperformance relative to its underlying benchmark, the Bloomberg Barclays MSCI Global Green Bond Index, over the long run.

The underlying investment philosophy is based on the segmentation of fixed income markets and how they are not perfectly synchronous. Fear and greed cycles overshoot, creating dislocations in valuation and risk premiums. We believe that we can discover and exploit these market inefficiencies.

Process

The strategy uses a proprietary five-step bond selection framework to determine the eligibility of green bonds and to ensure that these are in line with the most recent regulatory developments on sustainable finance. It is designed to ensure that only those green bonds that adhere to internationally accepted principles for green bonds, and which truly have an impact, are eligible for the portfolio.

Once the universe of eligible green bonds is determined, a fundamental analysis is applied, relying on the disciplined and repeatable investment process used by the Robeco Fixed Income team.

The Green bonds strategy is actively managed with a diversified exposure to the global green bond market. It exploits both active interest rate and credit strategies by investing in green bonds issued by governments, government-related agencies and corporates.

Greening the bond market
Greening the bond market

Green bond issuance has developed healthy momentum over recent years.

Read the insight

Team

The strategy is managed by a team of global fixed income and sustainability specialists that has experience in the green bond market since 2013.

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Disclaimer

Please read this important information before proceeding further. It contains legal and regulatory notices relevant to the information contained on this website.

The information contained in the Website is NOT FOR RETAIL CLIENTS - The information contained in the Website is solely intended for professional investors, defined as investors which (1) qualify as professional clients within the meaning of the Markets in Financial Instruments Directive (MiFID), (2) have requested to be treated as professional clients within the meaning of the MiFID or (3) are authorized to receive such information under any other applicable laws. The value of the investments may fluctuate. Past performance is no guarantee of future results. Investors may not get back the amount originally invested. Neither Robeco Institutional Asset Management B.V. nor any of its affiliates guarantees the performance or the future returns of any investments. If the currency in which the past performance is displayed differs from the currency of the country in which you reside, then you should be aware that due to exchange rate fluctuations the performance shown may increase or decrease if converted into your local currency.

In the UK, Robeco Institutional Asset Management B.V. (“ROBECO”) only markets its funds to institutional clients and professional investors. Private investors seeking information about ROBECO should visit our corporate website www.robeco.com or contact their financial adviser. ROBECO will not be liable for any damages or losses suffered by private investors accessing these areas.

In the UK, ROBECO Funds has marketing approval for the funds listed on this website, all of which are UCITS funds. ROBECO is authorized by the AFM and subject to limited regulation by the Financial Conduct Authority. Details about the extent of our regulation by the Financial Conduct Authority are available from us on request.

Many of the protections provided by the United Kingdom regulatory framework may not apply to investments in ROBECO Funds, including access to the Financial Services Compensation Scheme and the Financial Ombudsman Service. No representation, warranty or undertaking is given as to the accuracy or completeness of the information on this website.

If you are not an institutional client or professional investor you should therefore not proceed. By proceeding please note that we will be treating you as a professional client for regulatory purposes and you agree to be bound by our terms and conditions.

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