Schroders launches Sustainable Bond Fund for global corporates and sovereigns

22 February 2022

Schroders today announces it has continued to grow its sustainable and impact fund suite with the launch of the Schroder Sustainable Bond fund, designed to provide investors with long-term diversified returns through sustainable investment across the full spectrum of global fixed income markets.

The fund, managed by Schroders Global Fixed Income and Currency team, will harness Schroders well-established top-down thematic fixed income investment process to invest in both sovereign and corporate debt across developed and emerging markets.

At the core of the strategy is an innovative approach to defining a sustainable investment universe of sovereign markets. Countries targeted for investment include those making appropriate progress towards meeting the United Nations Sustainable Development Goals, those with explicit net zero policies, and those whose political and civil freedoms are supportive of sustainable growth,.

The fund will also draw on Schroders’ recognised expertise in sustainable credit, and integrate the firm’s proprietary, award-winning investment tool SustainEx, now further enhanced to score sovereign and supranational issuers as well as corporates.

It will aim to deliver a total return of 2.5% per annum over the ICE BofA Sterling three-month Government Bill index, net of fees, over a three-to-five year cycle.

Source: Schroders