Schroders and BlueOrchard’s climate impact strategy rapidly attracts $100 million

09/09/2021 News Releases

Zurich/London, 9 September 2021 – Schroders and BlueOrchard, the emerging markets impact specialist which is a member of the Schroders Group, today announce that the Schroder ISF BlueOrchard Emerging Markets Climate Bond Fund has attracted USD 100 million in less than three months since launch.

The UCITS strategy offers daily liquidity and invests across a range of environmentally focused projects, including green bonds, and supports the United Nations’ climate-related Sustainable Development Goals.

Michael Wehrle, Head of Investment Solutions, BlueOrchard, commented:

“This milestone, and the pace at which we have achieved it, confirms our expectation that there is strong investor demand for a climate impact strategy that targets positive environmental change in emerging markets. We also believe it is a reflection of investor trust in BlueOrchard’s 20 years of experience in delivering strong results in impact and financial return.”

Carolina Minio Paluello, Global Head of Product, Solutions & Quant, Schroders, commented:

“We have identified climate change as one of the main global threats and, as investors, we possess the ability to deliver change in the world by directing capital into areas that generate positive impacts.

“This fund is enabling us to do just that and it is testament to the strengthen of our investment focus that clients also recognise this and have been keen to invest.

“The Schroder ISF BlueOrchard Emerging Markets Climate Bond Fund is enabling us to leverage our expertise and knowledge across public and private markets, to maximise our investment impact across emerging and frontier markets to help mitigate the climate challenge.”  

The ever-growing investment universe of the Fund encompasses public debt securities issued for the financing and re-financing of projects with clear environmental, green or social benefits. This includes initiatives in renewable energy, energy efficiency, green buildings, and clean transportation.

The Fund also allocates part of its portfolio to sustainability and sustainability-linked bonds, with outcomes tied to the financing of both social and environmental projects. On the back of its robust investment process, BlueOrchard has built a diversified climate impact bonds portfolio with a strong bias towards emerging markets.

Among other issuers, the Fund has invested in Greenko, a leading Indian developer of renewable energy. The Fund’s investment will help to facilitate the company’s growth as a provider of climate-smart solutions in a rapidly growing market.

The Fund’s 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], with which BlueOrchard can implement, monitor and ultimately measure its goals and maximise the Fund’s positive impact.

Schroders completed the acquisition of a majority stake in BlueOrchard in 2019. Earlier this year, Schroders took another step towards building a leading position in sustainability and impact investments by also joining the influential Global Impact Investing Network.

BlueOrchard is an impact investment pioneer, and this year celebrates its 20th anniversary.  Since its inception in 2001, BlueOrchard has evolved into a leading global impact investment manager, having invested more than USD 8 billion across more than 90 countries to date. As of March 2021, more than 216 million poor and vulnerable people, in emerging and frontier markets, have received access to financial and related services with the support of BlueOrchard.

[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.

For further information, please contact:

Andy Pearce, PR Manager
+44 20 7658 2203
andy.pearce@schroders.com

Tahmina Theis, Head of Communications, BlueOrchard
+41 22 596 4769
tahmina.theis@blueorchard.com

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Schroders Capital
Schroders Capital is a business built to provide investors with access to a broad range of private asset investment opportunities, portfolio building blocks and customised private asset strategies. Its team operates in private market, focusing 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 over $66.5 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 30 June 2021

 

About BlueOrchard Finance Ltd
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 8bn across more than 90 countries. Over 216 million poor and vulnerable people in emerging and frontier markets received access to financial and related services with the support of BlueOrchard as of March 2021. For additional information, please visit: www.blueorchard.com.

Schroders plc
As a global active asset manager, the way we direct capital not only shapes the financial returns we achieve for our clients but also the impact that the companies in which we invest on their behalf might have on society. The relationship between these two outcomes has rapidly evolved as we see a fundamental shift in how companies are viewed and valued. Understanding the impact that they can have on society and the planet is crucial in assessing their ability to deliver risk-adjusted profits.
Our ongoing success is built on a history of experience and expertise, whereby we partner with our clients to construct innovative products and solutions across our five business areas consisting of Private Assets & Alternatives, Solutions, Mutual Funds, Institutional and Wealth Management and invest in a wide range of assets and geographies. By combining our commitment to active management and focus on sustainability, our strategic capabilities are designed to deliver positive outcomes for our clients.
We are responsible for £700.4 billion (€815.8 billion/$967.5 billion)[1] assets of our clients, managed locally by 42 investment teams worldwide. As a global business with over 5,500 talented staff  across 37 locations, we are able to stay close to our clients and understand their needs. We have over 200 years of experience in investment and innovation.
Further information about Schroders can be found at www.schroders.com
Issued by Schroder Investment Management Limited. Registration No 1893220 England. Authorised and regulated by the Financial Conduct Authority. For regular updates by e-mail please register online at www.schroders.com for our alerting service.
[1]As at 30 June 2021.

 

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