Neuberger Berman has launched the Sustainable Asia High Yield Fund.
The fund is benchmarked against the JPMorgan JESG JACI High Yield Index and will invest in high yielding, Asian credit opportunities displaying strong sustainability criteria. It will be managed by portfolio managers Nish Popat based in London, Sean Jutahkiti and Prashant Singh, both based in Singapore.
NB says the managers will analyse ESG factors, while looking to identify businesses leveraging technology to provide solutions for a low carbon future – including domestic leaders in renewable energy. Overall, the portfolio aims to have a carbon intensity 30% lower than the broader Asian high yield universe.
Nish Popat comments: “Asia forms a large and resilient part of the global economy and is now one of the largest bond markets in the world. Yet, sustainable investing all too often stops at the border to the emerging world. We believe EMD investors have an important role in promoting sustainability, as emerging countries contain about 80% of the world’s population, contribute towards 60% of its GDP and generate two-thirds of its carbon emissions. Ignoring sustainability in EMD is simply no longer sustainable. Asia hosts many domestic leaders in renewable energy, which will take centre stage in the fund.”