Ahead of an anticipated boom in the USD green-bond market, Robeco, an international asset management company, and Luxembourg-headquartered Quintet Private Bank have partnered to launch one of Europe’s first USD green-bond strategies.
RobecoSAM US Green Bonds is designed to provide diversified exposure to the United States' (US) green-bond market, fueling positive environmental impact while aiming to provide long-term capital growth that outperforms the Bloomberg Barclays MSCI USD Green Bond Index.
As exclusive partner for the six months following launch, Quintet has targeted an initial commitment of €125 million to the strategy, which will be deployed in its discretionary portfolios as part of the wealth manager’s “sustainable by default” strategy.
At a time when Europe dominates the rapidly growing global green-bond market, the US now appears determined to close that gap. In light of the Biden administration’s clean energy transition plan, USD-denominated green-bond issuance is expected to soar. Such issuance already topped $65 billion in the first half of this year and appears set to shatter the 2020 full-year record of $95 billion.
The RobecoSAM US Green Bonds Strategy invests in USD-denominated green bonds issued by corporates, government-related agencies and governments. To ensure that bonds are truly "green", Robeco performs a proprietary five-step green bond screening process and makes strong demands with regard to reporting.
The RobecoSAM US Green Bonds Strategy is run by Robeco’s Macro Fixed Income team of seventeen seasoned professionals who cover credit, global rates, euro sovereigns, multi-asset and derivatives. The team has many years of experience in green bond investing and an established sustainable investing capability. Michiel de Bruin and Peter Kwaak are the strategy’s joint portfolio managers.
The launch of RobecoSAM US Green Bonds reflects the shared conviction of Robeco and Quintet that investing in innovation can support positive change that benefits people and planet.
Christoph von Reiche, ExCo Member and Global Head of Sales at Robeco, commented: “The RobecoSAM US Green Bonds strategy perfectly fits Robeco’s strategic ambitions in sustainable investing in general and our focus on climate-related risks in particular. We are excited to have Quintet as our launch partner and look forward to providing our other clients with an excellent opportunity to participate in the largest economy in the world opening up to greener investments”.
Jakob Stott, Group CEO of Quintet, added: “As the recent floods in Europe demonstrated with devastating clarity, mitigating the impact of climate change is an urgent, universal challenge. At Quintet – where we place sustainability at the heart of our business and as the driving force behind our clients’ investments – we are very pleased to partner with Robeco’s experienced team as we continue to bring our sustainability strategy to life, meeting client needs and contributing to a brighter future”.