BNY Mellon Investment Management today announced the launch of the Responsible Horizons Strategic Bond Fund (the Fund), managed by Insight Investment. Insight[1] is a £742bn global asset and risk manager and PRI A+ rated leader in fixed income[2], with £153.8bn under management in its Fixed Income Group.[3] The new Fund is part of the UK-domiciled BNY Mellon Investment Funds (BNY MIF) plc and available to UK institutional, intermediary and retail investors.
The Fund’s strategy belongs to the Responsible Horizons suite of solutions developed by Insight. When making investment decisions, Insight will assess the overall suitability of an issuer based on an environmental, social and governance (ESG) rating. The Fund will seek to gain exposure to issuers with stronger ESG ratings and may invest in securities where proceeds will be used to finance new and existing projects with environmental benefits. In addition, Insight may screen out issuers who are involved in industries and sectors which have weaker ESG profiles, for example as a result of high climate change risks.
The Fund is benchmark agnostic and its performance can be compared against the Investment Association (IA) Sterling Strategic Bond Sector. It is led by Senior Portfolio Manager Adam Whiteley, who has managed Insight credit portfolios for 13 years. Whiteley is supported by three other members of Insight’s credit desk, which is part of Insight’s wider Fixed Income Group of 160 investment professionals.[4] The Fund’s managers can access the expertise of Insight’s 61 fixed income analysts4 and incorporate data from Prime, Insight’s proprietary ESG ratings system.
Michael Beveridge, Head of UK Intermediary Distribution at BNY Mellon Investment Management, said: “The IA Strategic Bond sector is an important sector for UK investors and one that is currently underserved in products demonstrating 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. 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 isn’t available through many third-party providers.”
Adam Whiteley, Senior Portfolio Manager at Insight, said: “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.”
[1] Insight is the corporate brand for certain companies operated by Insight Investment Management Limited (IIML). Insight includes, among others, Insight Investment Management (Global) Limited (IIMG), Insight Investment International Limited (IIIL), Insight Investment Management (Europe) Limited (IIMEL) and Insight North America LLC (INA), each of which provides asset management services.
[2] In 2020, Insight was awarded A+ ratings by the Principles for Responsible Investment (PRI) for strategy and governance and for the integration of responsible investment-related issues across our fixed income business. The PRI, launched in 2006, is an independent organisation that works to understand the investment implications of ESG factors and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions. More details are available at www.unpri.org/. Click here for further details.
[3] As at 30 June 2021. Assets under management (AUM) are represented by the value of cash securities and other economic exposure managed for clients. Figures shown in GBP. Reflects the AUM of Insight, the corporate brand for certain companies operated by Insight Investment Management Limited (IIML). Insight includes, among others, Insight Investment Management (Global) Limited (IIMG), Insight Investment International Limited (IIIL), Insight Investment Management (Europe) Limited (IIMEL) and Insight North America LLC (INA), each of which provides asset management services.
[4] As at 1 September 2021.
