Schroder International Selection Fund (ISF) BlueOrchard Emerging Market Climate Bond Fund
SRI Style:
Sustainable Style
SDR Labelling:
Not eligible to use label (out of scope)
Product:
SICAV/Overseas
Fund Region:
Global
Fund Asset Type:
Fixed Interest
Launch Date:
17/06/2021
Last Amended:
Jan 2024
Dialshifter (
):
Fund/Portfolio Size:
£48.23m
(as at: 31/03/2026)
Total Screened Themed SRI Assets:
£58000.00m
(as at: 31/12/2023)
Total Responsible Ownership Assets:
£737573.00m
(as at: 31/12/2023)
Total Assets Under Management:
£737573.00m
(as at: 31/12/2023)
ISIN:
LU2399671168, LU2342518482, LU2498533566, LU2498533483, LU2495977162, LU2498533301, LU2498533053, LU2498532915, LU2498533137, LU2498533640, LU2565410094, LU2328266734, LU2328266908, LU2328266650, LU2328267468, LU2342518300, LU2328267039, LU2391338600, LU2328266817, LU2328267385, LU2328267112, LU2391338782
Objectives:
Schroder International Selection Fund (ISF) BlueOrchard Emerging Markets Climate Bond is a scalable and liquid impact investing strategy, purchasing primarily emerging markets issued climate bonds contributing to the achievement of climate action Sustainable Development Goals (SDGs) and providing strong diversification features.
The fund aims to provide capital growth in excess of the ICE BofA 3 Month US Treasury Bill Index + 2.5% before fees.
Sustainable, Responsible
&/or ESG Overview:
Awaiting update from fund manager
The Fund’s primary objective is to contribute to a sustainable, low carbon future by investing in mainly green bonds issued by emerging market and developed market issuers with a proven environmental impact, and an alignment to the achievement of the SDGs, as well as other bonds aligned to the climate action SDGs.
Primary fund last amended:
Jan 2024
Information directly from fund manager.
Fund Filters
Sustainability - General
Use the UN Global Compact to inform or help direct where they can or cannot invest. Will typically not invest in companies with significant breaches (low standards) - strategies vary. (The UNGC covers a wide range of issues - search 'UNGC'). See https://unglobalcompact.org/
Has a theme or investment strand focused on the shift to a circular economy - where products are reused and recycled not incinerated or dumped. See eg https://www.ellenmacarthurfoundation.org/topics/circular-economy-introduction/overview
Nature & Biodiversity
Has a significant focus on investment in nature and biodiversity related opportunities
Climate Change & Energy
Has an energy efficiency theme - typically meaning that the manager is focused on investing in organisations that manage - or help others to manage - energy use more carefully and less wastefully - and so reduce greenhouse gas emissions.
Invest in renewable energy companies and / or companies where renewable energy is a significant part of their business. Strategies vary.
Excludes companies and other assets with direct involvement in fossil fuel exploration (eg coal, oil and gas companies)
Excludes companies / assets with indirect involvement in fossil fuel exploration. This may relate to providers of finance and / or insurance and providers of other services.
Social / Employment
All mining companies excluded
Ethical Values Led Exclusions
Companies are excluded if they are involved in any aspect of the production chain for tobacco products, including cigarettes, vaping, e-cigarettes, chewing tobacco and cigars.
Avoids companies that manufacture weapons intended specifically for military use. Strategies vary - may or may not include non-strategic military products.
Has a written civilian firearms exclusion policy - meaning that they will not invest in companies that make (or perhaps also sell) handguns made for non-military users.
Avoids companies that produce alcohol. Strategies vary; some may allow a small proportion of revenue to come from this area.
Avoids companies with significant involvement in the gambling industry. Some may allow a small proportion of revenues to come from this area.
Avoids companies that derive significant income from pornography and related areas. Strategies vary.
Human Rights
Has policies that exclude companies or other assets which operate in, or are owned by regimes which are not democratic, or where people may be oppressed. May use eg. Freedom House research. Strategies vary.
Has a policy which excludes assets with involvement in Modern Slavery
Banking & Financials
Avoids banks that have a large part of their loan book (or other assets) invested in fossil fuels companies - particular coal, oil and gas.
Governance & Management
Encourage the companies they invest in to have more diverse board structures (e.g. more women on boards)
Encourage the banks and insurance companies they invest in to publish climate change related financial information - as set out by the Task Force on Climate Related Financial Disclosures (with the aim of helping investors measure and respond to climate risk).
Aim to encourage higher ESG standards through responsible ownership / stewardship / engagement /voting activity
Requires the companies they invest in to report on climate risks that are relevant to their business in their report and accounts
Asset Size
Invests in international entities or bodies with agreed remits that are broadly similar to those that may otherwise be undertaken by individual governments eg the UN
Targeted Positive Investments
Invests >25% of their capital in companies where a major part of their business is focused on helping to address environmental or social challenges.
Invests >50% of their capital in companies where a major part of their business is focused on helping to address environmental or social challenges.
Impact Methodologies
Aims to deliver positive environmental and or social impacts (real world benefits) through its engagement with investee assets
Invests more than 50% of capital in assets which are regarded as being significantly focused on providing solutions to environmental or social challenges. Strategies vary.
How The Fund/Portfolio Works
Focuses on finding and investing in companies with positive / beneficial attributes. This strategy can be applied in addition to exclusion criteria and engagement/stewardship activity.
Aims to avoid companies that do significant harm. This originates from the EU’s sustainable finance ‘DNSH’ (do no significant harm) work, which is not necessarily used by UK investors.
Invests in assets which can be 'mapped' (reviewed) their investment selection and management strategies to identify which of the UN Sustainable Development Goals (SDGs) the fund is helping to address.
Unscreened Assets & Cash
All assets - except cash - meet the sustainability criteria published in strategy documentation.
Labels & Accreditations
Find options classified under Article 9 of the EU’s SFDR (Sustainable Finance Disclosure Requirements). Article 9 of the SFDR applies to financial products that have sustainable investment 'objectives' - including emissions reduction objectives. (These may currently be referred to as 'impact' funds or aiming to deliver clear, specific positive outcomes.) These rules do not currently apply in the UK so product managers may leave this field blank.
Fund Management Company Information
About The Business
Find fund / asset management companies (or subsidiaries) that specialise in - or focus entirely on - investing in assets that are helping to deliver positive environmental and / or social impacts.
Find fund / asset management companies that encourage the companies they invest in to have strong diversity, race, gender and other equality policies across all assets held, not simply screened or themed SRI/ESG funds. (ie Asset Management company wide).
This fund / asset management company invests in companies which have recently listed on a stock exchange (which is important as it can help grow new businesses).
Fund / asset management company has investments in bonds designed to meet sustainability requirements - however these assets may not be 'ringfenced' for this purpose. See website for details.
Collaborations & Affiliations
Find fund / asset management companies that have signed up to the UN backed 'Principles of Responsible Investment'.
Find fund / asset management companies that have partnered with Fund EcoMarket - meaning that they are helping to improve access to information on sustainable and responsible investment by paying an annual fee to us which enables us to publish information for free. Partner funds are listed ahead of other funds and have their logos displayed.
Engagement Approach
Find fund / asset management companies that regularly initiate or run industry wide (collaborative) investor projects aimed at raising environmental, social and governance standards amongst investee companies.
Fund / asset manager has stewardship /responsible ownership strategy that is focused on addressing climate change with investee assets.
The fund / asset manager has a responsible ownership / stewardship strategy that focuses on biodiversity and nature issues relating to the assets they invest the aim of which will be to reduce harm and or deliver improvement. Strategies vary. https://tnfd.global
Fund / asset management company has a stewardship strategy in place which involves working to raise diversity, equality and inclusion standards across investee assets
Transparency
Find fund / asset management companies that have supplied Dialshifter information. See Dialshifter tab within record for more information.
Sustainable, Responsible &/or ESG Policy:
Each investment in the Fund is selected on the basis of BlueOrchard’s holistic ESG and impact management framework, known as the B.Impact Framework. This proprietary analysis, performed independently by the Impact Team, ensures that ESG risks and impact goals are reflected in each investment decision. In addition, it includes an SDG alignment directly linked to the data collected in the impact assessment.
The B.Impact Framework allows BlueOrchard to classify all positions in the portfolio according to their ESG risk (between very low and very high) and impact potential (between very high and very low).
Process:
The bond impact and ESG assessment procedures involve multiple steps:
- Investment Universe screening - Analysis of the bond pipeline provided by Investment Solutions Team and screened against the IFC exclusion list and the BlueOrchard public assets exclusion list.
- ESG Assessment - The ESG scorecard aims to look at the Social, Environmental and Governance strength of an issuer and if it meets minimum safeguard standards.
- Impact Assessment - The impact scorecard is done on investment level and outlines the impact generated by the investment, as well as the contribution of the Fund’s investment.
- SDG Mapping
- Impact Committee - The Impact Committee is responsible for approving ESG and impact guidance and procedures proposed by the Impact Management (IM) Team.
- Monitoring and Reporting - The investments are monitored on a regular and ongoing basis.
SDR Labelling:
Not eligible to use label (out of scope)
Fund Holdings
Disclaimer
Risk considerations - Schroder ISF* BlueOrchard Emerging Markets Climate Bond
The following risks may affect fund performance:
- Bond Connect risk: The fund may be investing in the China Interbank Bond Market via the Bond Connect which may involve clearing and settlement, regulatory, operational and counterparty risks.
- Credit risk: A decline in the financial health of an issuer could cause the value of its bonds to fall or become worthless.
- Derivatives risk: Derivatives may be used to manage the portfolio efficiently. The fund may also materially invest in derivatives including using short selling and leverage techniques with the aim of making a return. A derivative may not perform as expected, may create losses greater than the cost of the derivative and may result in losses to the fund.
- Emerging markets & frontier risk: Emerging markets, and especially frontier markets, generally carry greater political, legal, counterparty, operational and liquidity risk than developed markets.
- High yield bond risk: High yield bonds (normally lower rated or unrated) generally carry greater market, credit and liquidity risk.
- IBOR risk: The transition of the financial markets away from the use of interbank offered rates (IBORs) to alternative reference rates may impact the valuation of certain holdings and disrupt liquidity in certain instruments. This may impact the investment performance of the fund.
- Interest rate risk: The fund may lose value as a direct result of interest rate changes.
- Liquidity risk: In difficult market conditions, the fund may not be able to sell a security for full value or at all. This could affect performance and could cause the fund to defer or suspend redemptions of its shares.
- Onshore renminbi currency risk: The fund can be exposed to different currencies. Changes in foreign exchange rates could create losses. Currency control decisions made by the Chinese government could affect the value of the fund's investments and could cause the fund to defer or suspend redemptions of its shares.
- Operational risk: Operational processes, including those related to the safekeeping of assets, may fail. This may result in losses to the fund.
- Performance risk: Investment objectives express an intended result but there is no guarantee that such a result will be achieved. Depending on market conditions and the macro economic environment, investment objectives may become more difficult to achieve.
- Sustainability risk: The fund has the objective of sustainable investment. This means it may have limited exposure to some companies, industries or sectors and may forego certain investment opportunities, or dispose of certain holdings, that do not align with its sustainability criteria chosen by the investment manager. The fund may invest in companies that do not reflect the beliefs and values of any particular investor.
- Market risk: The value of investments can go up and down and an investor may not get back the amount initially invested.
*ISF stands for International Selection Fund which is a Schroder fund range.
| Fund Name | SRI Style | SDR Labelling | Product | Region | Asset Type | Launch Date | Last Amended |
|
|---|---|---|---|---|---|---|---|---|
Schroder International Selection Fund (ISF) BlueOrchard Emerging Market Climate Bond Fund |
Sustainable Style | Not eligible to use label (out of scope) | SICAV/Overseas | Global | Fixed Interest | 17/06/2021 | Jan 2024 | |
ObjectivesSchroder International Selection Fund (ISF) BlueOrchard Emerging Markets Climate Bond is a scalable and liquid impact investing strategy, purchasing primarily emerging markets issued climate bonds contributing to the achievement of climate action Sustainable Development Goals (SDGs) and providing strong diversification features. The fund aims to provide capital growth in excess of the ICE BofA 3 Month US Treasury Bill Index + 2.5% before fees.
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Fund/Portfolio Size: £48.23m (as at: 31/03/2026) Total Screened Themed SRI Assets: £58000.00m (as at: 31/12/2023) Total Responsible Ownership Assets: £737573.00m (as at: 31/12/2023) Total Assets Under Management: £737573.00m (as at: 31/12/2023) ISIN: LU2399671168, LU2342518482, LU2498533566, LU2498533483, LU2495977162, LU2498533301, LU2498533053, LU2498532915, LU2498533137, LU2498533640, LU2565410094, LU2328266734, LU2328266908, LU2328266650, LU2328267468, LU2342518300, LU2328267039, LU2391338600, LU2328266817, LU2328267385, LU2328267112, LU2391338782 Contact Us: Arvin.Bains@Schroders.com / Meriel.Turner@schroders.com |
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Sustainable, Responsible &/or ESG OverviewAwaiting update from fund manager
The Fund’s primary objective is to contribute to a sustainable, low carbon future by investing in mainly green bonds issued by emerging market and developed market issuers with a proven environmental impact, and an alignment to the achievement of the SDGs, as well as other bonds aligned to the climate action SDGs. |
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Primary fund last amended: Jan 2024 |
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Information received directly from Fund Manager |
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Fund FiltersSustainability - General
UN Global Compact linked exclusion policy
Use the UN Global Compact to inform or help direct where they can or cannot invest. Will typically not invest in companies with significant breaches (low standards) - strategies vary. (The UNGC covers a wide range of issues - search 'UNGC'). See https://unglobalcompact.org/
Circular economy theme
Has a theme or investment strand focused on the shift to a circular economy - where products are reused and recycled not incinerated or dumped. See eg https://www.ellenmacarthurfoundation.org/topics/circular-economy-introduction/overview Nature & Biodiversity
Nature / biodiversity focus
Has a significant focus on investment in nature and biodiversity related opportunities Climate Change & Energy
Energy efficiency theme
Has an energy efficiency theme - typically meaning that the manager is focused on investing in organisations that manage - or help others to manage - energy use more carefully and less wastefully - and so reduce greenhouse gas emissions.
Invests in clean energy / renewables
Invest in renewable energy companies and / or companies where renewable energy is a significant part of their business. Strategies vary.
Fossil fuel exploration exclusion - direct involvement
Excludes companies and other assets with direct involvement in fossil fuel exploration (eg coal, oil and gas companies)
Fossil fuel exploration exclusion – indirect involvement
Excludes companies / assets with indirect involvement in fossil fuel exploration. This may relate to providers of finance and / or insurance and providers of other services. Social / Employment
Mining exclusion
All mining companies excluded Ethical Values Led Exclusions
Tobacco & related product manufacturers excluded
Companies are excluded if they are involved in any aspect of the production chain for tobacco products, including cigarettes, vaping, e-cigarettes, chewing tobacco and cigars.
Armaments manufacturers avoided
Avoids companies that manufacture weapons intended specifically for military use. Strategies vary - may or may not include non-strategic military products.
Civilian firearms production exclusion
Has a written civilian firearms exclusion policy - meaning that they will not invest in companies that make (or perhaps also sell) handguns made for non-military users.
Alcohol production excluded
Avoids companies that produce alcohol. Strategies vary; some may allow a small proportion of revenue to come from this area.
Gambling avoidance policy
Avoids companies with significant involvement in the gambling industry. Some may allow a small proportion of revenues to come from this area.
Pornography avoidance policy
Avoids companies that derive significant income from pornography and related areas. Strategies vary. Human Rights
Oppressive regimes (not free or democratic) exclusion policy
Has policies that exclude companies or other assets which operate in, or are owned by regimes which are not democratic, or where people may be oppressed. May use eg. Freedom House research. Strategies vary.
Modern slavery exclusion policy
Has a policy which excludes assets with involvement in Modern Slavery Banking & Financials
Exclude banks with significant fossil fuel investments
Avoids banks that have a large part of their loan book (or other assets) invested in fossil fuels companies - particular coal, oil and gas. Governance & Management
Encourage board diversity e.g. gender
Encourage the companies they invest in to have more diverse board structures (e.g. more women on boards)
Encourage TCFD alignment for banks & insurance companies
Encourage the banks and insurance companies they invest in to publish climate change related financial information - as set out by the Task Force on Climate Related Financial Disclosures (with the aim of helping investors measure and respond to climate risk).
Encourage higher ESG standards through stewardship activity
Aim to encourage higher ESG standards through responsible ownership / stewardship / engagement /voting activity
Require investee companies to report climate risk in R&A
Requires the companies they invest in to report on climate risks that are relevant to their business in their report and accounts Asset Size
Invest in supranationals
Invests in international entities or bodies with agreed remits that are broadly similar to those that may otherwise be undertaken by individual governments eg the UN Targeted Positive Investments
Invests >25% in environmental / social solutions companies
Invests >25% of their capital in companies where a major part of their business is focused on helping to address environmental or social challenges.
Invests >50% of fund in environmental / social solutions companies
Invests >50% of their capital in companies where a major part of their business is focused on helping to address environmental or social challenges. Impact Methodologies
Aim to deliver positive impacts through engagement
Aims to deliver positive environmental and or social impacts (real world benefits) through its engagement with investee assets
Over 50% in assets providing environmental or social ‘solutions’
Invests more than 50% of capital in assets which are regarded as being significantly focused on providing solutions to environmental or social challenges. Strategies vary. How The Fund/Portfolio Works
Positive selection bias
Focuses on finding and investing in companies with positive / beneficial attributes. This strategy can be applied in addition to exclusion criteria and engagement/stewardship activity.
Significant harm exclusion
Aims to avoid companies that do significant harm. This originates from the EU’s sustainable finance ‘DNSH’ (do no significant harm) work, which is not necessarily used by UK investors.
Assets mapped to SDGs
Invests in assets which can be 'mapped' (reviewed) their investment selection and management strategies to identify which of the UN Sustainable Development Goals (SDGs) the fund is helping to address. Unscreened Assets & Cash
All assets (except cash) meet published sustainability criteria
All assets - except cash - meet the sustainability criteria published in strategy documentation. Labels & Accreditations
SFDR Article 9 fund / product (EU)
Find options classified under Article 9 of the EU’s SFDR (Sustainable Finance Disclosure Requirements). Article 9 of the SFDR applies to financial products that have sustainable investment 'objectives' - including emissions reduction objectives. (These may currently be referred to as 'impact' funds or aiming to deliver clear, specific positive outcomes.) These rules do not currently apply in the UK so product managers may leave this field blank. Fund Management Company InformationAbout The Business
Specialist positive impact fund management company
Find fund / asset management companies (or subsidiaries) that specialise in - or focus entirely on - investing in assets that are helping to deliver positive environmental and / or social impacts.
Diversity, equality & inclusion engagement policy (AFM companywide)
Find fund / asset management companies that encourage the companies they invest in to have strong diversity, race, gender and other equality policies across all assets held, not simply screened or themed SRI/ESG funds. (ie Asset Management company wide).
Invests in newly listed companies (AFM companywide)
This fund / asset management company invests in companies which have recently listed on a stock exchange (which is important as it can help grow new businesses).
Invests in new sustainability linked bond issuances (AFM companywide)
Fund / asset management company has investments in bonds designed to meet sustainability requirements - however these assets may not be 'ringfenced' for this purpose. See website for details. Collaborations & Affiliations
PRI signatory
Find fund / asset management companies that have signed up to the UN backed 'Principles of Responsible Investment'.
Fund EcoMarket partner
Find fund / asset management companies that have partnered with Fund EcoMarket - meaning that they are helping to improve access to information on sustainable and responsible investment by paying an annual fee to us which enables us to publish information for free. Partner funds are listed ahead of other funds and have their logos displayed. Engagement Approach
Regularly lead collaborative ESG initiatives (AFM companywide)
Find fund / asset management companies that regularly initiate or run industry wide (collaborative) investor projects aimed at raising environmental, social and governance standards amongst investee companies.
Engaging on climate change issues
Fund / asset manager has stewardship /responsible ownership strategy that is focused on addressing climate change with investee assets.
Engaging on biodiversity / nature issues
The fund / asset manager has a responsible ownership / stewardship strategy that focuses on biodiversity and nature issues relating to the assets they invest the aim of which will be to reduce harm and or deliver improvement. Strategies vary. https://tnfd.global
Engaging on diversity, equality & / or inclusion issues
Fund / asset management company has a stewardship strategy in place which involves working to raise diversity, equality and inclusion standards across investee assets Transparency
Dialshifter statement
Find fund / asset management companies that have supplied Dialshifter information. See Dialshifter tab within record for more information. Sustainable, Responsible &/or ESG Policy:Each investment in the Fund is selected on the basis of BlueOrchard’s holistic ESG and impact management framework, known as the B.Impact Framework. This proprietary analysis, performed independently by the Impact Team, ensures that ESG risks and impact goals are reflected in each investment decision. In addition, it includes an SDG alignment directly linked to the data collected in the impact assessment. The B.Impact Framework allows BlueOrchard to classify all positions in the portfolio according to their ESG risk (between very low and very high) and impact potential (between very high and very low). Process:The bond impact and ESG assessment procedures involve multiple steps:
Dialshifter (Corporate)Our organisation is helping to support the Paris Climate Agreement and the Race to Net Zero by… Adherence to our firm-wide net zero target is measured through an implied temperature score, which is calculated both in respect of our total holdings, and at the individual strategy or mandate level to allow our investment teams to assess their portfolios’ alignment with our overall SBTi commitments. We recognise that funds must be assessed over time rather than from quarter to quarter. We intend to assess portfolio progress over rolling three-year periods, consistent with the two to three year period over which we have found engagements typically bear fruit, to ensure investment teams are able to manage the transition thoughtfully, as valuations of better placed companies rise and fall. In addition, a number of our investment strategies, such as ‘Carbon Neutral Credit 2025’ or ‘Carbon Neutral Credit 2040,’ have specific net zero ambitions to support clients that wish to drive a faster transition. We recognise that clients are at different stages of their transition journey, and so continue to evolve our strategic climate offering to support these requirements. SDR Labelling:Not eligible to use label (out of scope) Fund HoldingsDisclaimerRisk considerations - Schroder ISF* BlueOrchard Emerging Markets Climate Bond The following risks may affect fund performance:
*ISF stands for International Selection Fund which is a Schroder fund range. |
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