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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 20^th 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.

Photo courtesy of Franz Jachim.