Schroders and BlueOrchard’s climate impact strategy marks first anniversary
Zurich, 23 June 2022 – Schroders and BlueOrchard, a leading global impact investment manager and member of the Schroders Group, are celebrating the first anniversary of their climate impact strategy: the Schroder ISF BlueOrchard Emerging Markets Climate Bond fund.
The UCITS strategy offers daily liquidity and invests across a range of environmentally focused projects, including green bonds, sustainability bonds, and other climate focused bonds. The fund supports the climate-related Sustainable Development Goals of the United Nations and seeks to deliver long-term, stable growth for investors by investing in issuers which aim to have a positive impact on the environment.
Its launch last year was further evidence of the successful ongoing collaboration between Schroders and BlueOrchard, having also worked together to launch the BlueOrchard Covid-19 Emerging and Frontier Markets MSMEs Support Fund. Schroders announced the acquisition of impact investing pioneer BlueOrchard in 2019.
The investable universe of the fund is defined by a team of impact specialists, acting independently from portfolio management. This encompasses public debt securities issued for the financing and re-financing of projects with clear environmental, green or social benefits and includes initiatives in renewable energy, energy efficiency, green buildings, and clean transportation. It focuses on emerging markets*, which offer significant scope for achieving the targeted positive performance from both an impact and financial perspective.
Among other issuers, the fund has invested in ReNew Power, a leading Indian renewable energy company. The company contributes to reducing the environmental footprint of the country and supports the energy transition in India, a rapidly growing market.
The investment strategy builds on BlueOrchard’s local presence and 20+ year track record in emerging and frontier market impact investing. Furthermore, the fund benefits from BlueOrchard’s independently verified impact management and ESG investment process, (1) which is the foundation for the implementation, monitoring and ultimately measurement of the fund’s impact goals.
Michael Wehrle, Head of Investment Solutions, BlueOrchard, commented:
“We are very pleased with how our fund has navigated the current challenging market environment. A crucial component of our strong performance has been our active management approach, which allows us to steer the portfolio and take advantage of opportunities in a volatile environment. In our view, emerging markets offer attractive opportunities in this context.”
Karine Szenberg, Head of Europe, Schroders, commented:
“Ahead of launching this fund we had identified climate change as one of the key global threats. This fund has therefore been focused on creating change in the world by investing in areas that can generate positive impacts, while at the same time also meeting the investment objectives of our clients to drive tangible positive change in this space.”
Earlier this year, the fund was awarded a Gold rating by 3D Investing, a subsidiary of Square Mile. 3D Investing’s certifications deliver a comprehensive evidence-based review that provide independent verification of a fund’s or company’s credibility in responsible investing. BlueOrchard was particularly praised for its effectiveness in delivering high impact, whilst avoiding harmful investments, as well as its impressive approach to engagement.
*Investments in emerging markets, particularly those involving foreign currencies, may present significant additional risk including the risk of loss of invested capital.
(1) BlueOrchard is signatory to the Operating Principles for Impact Management since April 2019. As part of this commitment, its impact management framework B.Impact, has been independently verified one year after by BlueMark, a Tideline company, and a leading provider of independent impact verification services for investors and companies.
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BlueOrchard is a leading global impact investment manager and member of the Schroders Group. As a pioneering impact investor, the firm is dedicated to generating lasting positive impact for communities and the environment, while aiming at providing attractive returns to investors. BlueOrchard was founded in 2001, by initiative of the UN, as the first commercial manager of microfinance debt investments worldwide. Today, the firm offers impact investment solutions across asset classes, connecting millions of entrepreneurs in emerging and frontier markets with investors with the aim to make impact investment solutions accessible to all and to advance the conscious use of capital. Being a professional investment manager and expert in innovative blended finance mandates, BlueOrchard has a sophisticated international investor base and is a trusted partner of leading global development finance institutions. To date, BlueOrchard has invested over USD 9bn across more than 90 countries. Around 230 million poor and vulnerable people in emerging and frontier markets received access to financial and related services with the support of BlueOrchard as of December 2021. For additional information, please visit: www.blueorchard.com.
Schroders Capital provides investors with access to a broad range of private asset investment opportunities, portfolio building blocks and customised private asset strategies. Its team focuses on delivering best-in-class, risk-adjusted returns and executing investments through a combination of direct investment capabilities and broader solutions in all private market asset classes, through comingled funds and customised private asset mandates.
The team aims to achieve sustainable returns through a rigorous approach and in alignment with a culture characterised by performance, collaboration and integrity.
With $74.9 billion* (£55.3 billion) assets under management, Schroders Capital offers a diversified range of investment strategies, including real estate, private equity, secondaries, venture capital, infrastructure, securitised products and asset-based finance, private debt, insurance-linked securities and BlueOrchard (Impact Specialists).
*Assets under management as at 31 December 2021 (including non-fee earning dry powder and in-house cross holdings)
Founded in 1804, Schroders is one of Europe’s largest independent investment management firms by assets under management. As at 31 December 2021, assets under management were £731.6 billion (€871.3 billion; $990.9 billion). The founding family remain a core shareholder, holding approximately 48% of the firm’s voting shares. Schroders has continued to deliver strong financial results. It has a market capitalisation of circa £8 billion and employs over 5,700 people across 37 locations.
Schroders has benefited from the most diverse business model of any UK asset manager by geography, by asset class and by client type. Schroders offers innovative products and solutions across their five business areas of solutions; institutional; mutual funds; private assets & alternatives; and wealth management. Clients include insurance companies, pension schemes, sovereign wealth funds, endowments and foundations. They also manage assets for end clients as part of their relationships with distributors, financial advisers and online platforms. Schroders’ Wealth Management offering reflects their strategic ambition to provide wealth management and financial planning services to clients across the wealth spectrum.
Schroders’ strategic aims are to grow their asset management business, build closer relationships with end clients and expand their private assets and alternatives business. Schroders’ purpose is to provide excellent investment performance to clients through active management. The business channels capital into sustainable and durable businesses to accelerate positive change in the world. Schroders’ business philosophy is based on the belief that if they deliver for clients, they deliver for Shareholders and other stakeholders.
Further information about Schroders can be found at www.schroders.com.
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