Ahead of an anticipated boom in the USD green-bond market driven by the Biden administration’s ambitious clean energy transition plan, Robeco and Quintet Private Bank have partnered to launch one of Europe’s first USD green-bond strategies.
RobecoSAM US Green Bonds – a carve-out from RobecoSAM Global Green Bonds, launched last year – provides diversified exposure to the 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 EUR 125 million to the strategy, which will be deployed in Quintet 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 – accounting for some 60% of worldwide issuance – the US now appears determined to close that gap. With a president who has called climate change “the number one issue facing humanity” and with hundreds of billions earmarked for American clean energy innovation, USD-denominated green-bond issuance is expected to soar. Such issuance already topped USD 65 billion in the first half of this year and appears set to shatter the 2020 full-year record of USD 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 17 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 a well-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: “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 at Quintet: “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.”