Brussels-headquartered Candriam Investors Group has unveiled the fund Candriam SRI Bond Global High Yield, which combines a long only approach in the global high yield market with Candriam’s SRI analysis.
The fund’s strategy offers access to an attractive asset class while it limits the exposure to issuers with unsustainable growth models and low regard for the environment or social values.
The Candriam SRI Bond Global High Yield fund is currently registered for marketing in Luxembourg, Germany, France, Spain, Italy, Switzerland, the Netherlands and the United Kingdom.
Candriam said it SRI Global High Yield process was built on the belief that the companies most likely to generate financial returns were those embracing sustainability-related opportunities and the challenges in concert with their financial opportunities. “Our investment philosophy relies on a deep financial and issue-specific research, combined with a high-conviction active style, in order to profit from opportunities in the high yield market,” the company said.
Offering the broadest SRI fund range in Europe, Candriam’s SRI accounts for more than 25% of the total assets managed by the company. It also holds an almost 20 year old high yield expertise, which this team managing today over €8bn in assets.
Philippe Noyard, head of High Yield & Credit Arbitrage said: “We have developed a specific expertise in the high yield market almost 20 years ago. Issuer selection, strategy flexibility and an active risk management are the pillars on our investment philosophy. Incorporating our long standing high yield expertise with our unique approach to SRI Best-in-class analysis made sense, so our clients can benefit from both.”
Wim Van Hyfte, global head Responsible Investments & Research, added: “We believe that a comprehensive appraisal of the ESG opportunities and risks of issuers is essential to make fully-informed investment decisions in the fixed income space, including high yield corporate credit. By aligning Candriam’s ESG-views with our fundamental credit analysis, Candriam attempts to mitigate and diversify the downside investment risks of our investment strategy.”