Assenagon Asset Management has launched credit ESG fund for corporate bonds and credit derivates, with the widest possible protection against currency and interest rate risks.
In developing the strategy, Assenagon worked very closely with the Basellandschaftliche Kantonalbank (BLKB) from Switzerland.
Assenagon Credit ESG fund pursues revenue optimisation and risk management through structured and disciplined portfolio management. The investment universe includes corporate bonds and credit derivatives in the cross-over segment. Because in this transitional area between investment grade and high yield bonds, portfolio management finds particularly attractive yield premiums. At the same time, the strategy ensures a sustainable investment approach according to ESG criteria by taking into account exclusion criteria, specific sustainability ratings and issuer compliance with applicable standards and laws. Assenagon cooperates with MSCI.
In addition to the sustainability criteria, the fund management relies on the proprietary credit rating model, which has proven itself in various market phases, to assess the fundamentals of an issuer on a credit-analytical basis. Both the sustainability and the default risk of an issuer are explicitly included in the portfolio weight of the investment and thus give the two factors the opportunity to contribute positively to the fund's performance.
Assenagon ESG investment philosophy consists of three pillars: firstly, exclusion of unreasonable companies, secondly, assessment and assessment of the ESG quality of companies and lastly, influence in dialogue with the respective issuer to consciously reduce sustainability deficits.