Robeco launches sustainable alpha equity and fixed income strategies

Robeco has bolstered its position in transition investing with the launch of two new equity strategies, and the repositioning of two fixed income strategies.

In a statement on 9 July, Robeco said the strategies would allow investors to tap into the growth potential of the sustainable transition, both from financial and sustainability perspectives.

The Emerging Markets Climate Transition Equities strategy focuses specifically on the transition toward a low-carbon economy, aligning with the goals of the Paris Agreement.

The broader Transition Asian Equities strategy also focuses on climate transition, but takes into consideration other environmental and social objectives at the same time.

In addition to the new strategies, Robeco repositioned two existing fixed income strategies: Transition Emerging Credits strategy (formerly Sustainable Emerging Credits) and the Transition Asian Bonds strategy (formerly Sustainable Asian Bonds); the latter was previously announced in April.

An estimated $125trn is needed to transform global emerging economies to net zero by 2050. As the biggest change is taking place in Asia and emerging markets, Robeco said it was focusing its strategies on those markets.

Transition investing includes investing in companies who may be at the beginning of their sustainability journeys. Effective transition is about greening the entire economy and not just growing the green economy. The world doesn't just need investments in solar panels and wind farms; it needs transition finance to provide the funding for businesses and sectors that are not so green today but will become greener over time, the asset manager said.

Lucian Peppelenbos (pictured), climate & biodiversity strategist at Robeco said: “We acknowledge the significance and opportunities of transition finance. Our expertise in equities and credits, our deep understanding of emerging markets, as well as our sustainability background are key ingredients to drive successful transition investments.

"With Robeco’s forward looking frameworks, we can identify companies leading the transition and support them with financing. In this way, we foster positive change and ensure that high-emitting companies are a part of the solution. Over time this creates broad-based value, and thus provides alpha opportunities.”