Sustainable investing giant Candriam has followed in the footsteps of M&G with the launch of a responsibly-invested high yield bond fund.
Candriam says the SRI Bond Global High Yield fund will limit exposure to issuers with “low regard for the environment or social values”.
Just yesterday M&G announced the launch of the ESG Global High Yield fund, which will use a three-phase screening process to incorporate environmental, social and governance considerations.
The Luxembourg-domiciled fund has an ongoing charge of 0.76 per cent.
Candriam global head of responsible investments and research Wim Van Hyfte says incorporating ESG into credit analysis mitigates downside investment risks.
“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,” says Van Hyfte.
The UK government is currently assessing recommendations from an industry advisory group, led by AllianzGI deputy chair Elizabeth Corley, detailing how the the savings, pensions and investment industry can meet increasing demand for social impact investment products.
Over a quarter of Candriam’s €111bn assets under management are SRI strategies. Its high yield team manages over €8bn.
Earlier this month the New York Life Investment Management-owned company defended its holdings of Venezuelan debt in its $2.3bn Bonds Emerging Markets fund, arguing that fund did not have a specific SRI mandate. It confirmed none of its SRI mandates held any of the controversial debt.