The Responsible Horizons Strategic Bond fund will offer investors access to a range of issuers with “stronger ESG rating” and may also invest in securities where “proceeds will be used to finance new and existing projects with environmental benefits”.
Managed by senior portfolio manager Adam Whiteley, the fund will be benchmark agnostic but can be compared against the IA Sterling Strategic Bond sector.
Supported by three other members of the credit desk, Whiteley will also be able to screen out issuers involved in “industries and sectors which have weaker ESG profiles, for example as a result of high climate change risks”.
The fund will be available to investors for an annual management charge of 0.5%.
Michael Beveridge, head of UK intermediary distribution at BNY IM, described the IA Strategic Bond sector as an important one for UK investors that is “currently underserved” by products with “strong sustainable and responsible investing principles”.
“There are significant barriers to launching a high-quality fixed income product like this across multiple fixed income areas, and we believe this is one of the first funds of its kind in the UK market,” he said. “We are pleased to partner with Insight to help more clients aiming to achieve their sustainable investment goals.
“This fund benefits from Insight’s impressive credentials for ESG in fixed income, a capability underpinned by its proprietary ‘Prime’ ESG data system, which has access to data that currently is not available through many third-party providers.”
Whiteley added: “Our Responsible Horizons solutions seek to emphasize the best and avoid the worst performers on ESG issues, apply a higher hurdle when considering investments in environmentally sensitive industries and reflect long-term themes such as climate change in our investment approach.
“Debt markets provide opportunities to influence sectors and issuers which may be difficult to reach via other asset classes. We find that capital is also often used to speed the transition of those issuers to more sustainable business models.”