Schroder International Selection Fund (ISF) BlueOrchard Emerging Market Climate Bond Fund
SRI Style:
Sustainable Style
SDR Labelling:
Not eligible to use label
Product:
SICAV/Offshore
Fund Region:
Global
Fund Asset Type:
Fixed Interest
Launch Date:
17/06/2021
Last Amended:
Jan 2024
Dialshifter (
):
Fund Size:
£94.91m
(as at: 31/12/2024)
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:
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:
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
Find funds that use the UN Global Compact to inform or help direct where they can or cannot invest and will typically not invest in companies with significant breaches (low standards) - although strategies vary. (The UNGC covers a wide range of issues - search 'UNGC'). See https://unglobalcompact.org/
Fund 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
Fund has a significant focus or emphasis on investment in nature and biodiversity related opportunities
Climate Change & Energy
Fund funds that have an energy efficiency theme - typically meaning that a fund 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.
Funds that hold companies in the clean energy and renewable energy sectors (at the time research was supplied). Fund strategies vary, in particular the proportion of investment in these areas may vary significantly. Check fund literature for details.
The fund manager excludes companies with direct involvement in fossil fuel exploration (eg coal, oil and gas companies)
The fund manager excludes companies with indirect involvement in fossil fuel exploration. For example they would be expected to exclude banks and insurance companies that are effectively enabling new coal, oil and or gas reserves to be discovered and in due course extracted through the provision of necessary finance or 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.
Find funds that avoid companies that manufacture products intended specifically for military use. Fund strategies vary - particularly with regard to non-strategic military products. See fund literature for fund specific details.
Find funds with 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.
Find funds that avoid investment in companies involved in the production of alcohol. Strategies vary; some funds allow a small proportion of profits to come from this area. See fund literature for further information.
Find funds that avoid companies with significant involvement in the gambling industry. Some funds may allow a small proportion of profits to come from this area. See fund policy for further details.
Find funds that avoid companies that derive significant income from pornography and related areas. Strategies vary. See fund details for further information.
Human Rights
Find funds with policies that exclude companies or other assets where regimes are not democratic, or where people may be oppressed. May use eg. Freedom House research. Strategies vary. See fund literature for further information.
The fund has a policy which excludes assets with involvement in Modern Slavery
Banking & Financials
Will avoid 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
Fund managers encourage the companies they invest in to have more diverse board structures (e.g. more women on boards)
Find fund managers that 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).
A core element of these funds will aim to encourage higher ESG standards through responsible ownership / stewardship / engagement /voting activity
The fund manager requires the companies they invest in to report on climate risks that are relevant to their business in their report and accounts
Asset Size
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
Find funds that invest >25% of their capital towards companies where a major part of their business is focused on helping to address environmental or social challenges.
Find funds that invest >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
Fund aims to deliver positive environmental and or social impacts (real world benefits) through its engagement with investee assets
50% of fund assets are regarded by the fund manager as being significantly focused on providing solutions to environmental or social challenges. Strategies vary.
How The Fund Works
Find funds that focus 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.
Find funds that have '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 held in the fund - except cash - meet the sustainability criteria published in fund documentation.
Labels & Accreditations
Finds funds 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 fund managers may leave this field blank.
Fund Management Company Information
About The Business
Find fund 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 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 asset management company invests in companies which have recently listed on a stock exchange (which is important as it can help grow new businesses).
Asset management company has investments in bonds designed to meet sustainability requirements - however these assets may not be 'ringfenced' for this purpose. See fund manager website for details.
Collaborations & Affiliations
Find fund management companies that have signed up to the UN backed 'Principles of Responsible Investment'.
Engagement Approach
Find fund management companies that regularly initiate or run industry wide (collaborative) investor projects aimed at raising environmental, social and governance standards amongst investee companies.
Fund manager has stewardship /responsible ownership strategy that is focused on addressing climate change with investee assets.
The 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
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 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.
Dialshifter
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
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 |
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|---|---|---|---|---|---|---|---|---|
Schroder International Selection Fund (ISF) BlueOrchard Emerging Market Climate Bond Fund |
Sustainable Style | Not eligible to use label | SICAV/Offshore | 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 Size: £94.91m (as at: 31/12/2024) 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: sami.arouche@schroders.com |
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Sustainable, Responsible &/or ESG OverviewThe 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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Please select what you would like to read:
Fund FiltersSustainability - General
UN Global Compact linked exclusion policy
Find funds that use the UN Global Compact to inform or help direct where they can or cannot invest and will typically not invest in companies with significant breaches (low standards) - although strategies vary. (The UNGC covers a wide range of issues - search 'UNGC'). See https://unglobalcompact.org/
Circular economy theme
Fund 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
Fund has a significant focus or emphasis on investment in nature and biodiversity related opportunities Climate Change & Energy
Energy efficiency theme
Fund funds that have an energy efficiency theme - typically meaning that a fund 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
Funds that hold companies in the clean energy and renewable energy sectors (at the time research was supplied). Fund strategies vary, in particular the proportion of investment in these areas may vary significantly. Check fund literature for details.
Fossil fuel exploration exclusion - direct involvement
The fund manager excludes companies with direct involvement in fossil fuel exploration (eg coal, oil and gas companies)
Fossil fuel exploration exclusion – indirect involvement
The fund manager excludes companies with indirect involvement in fossil fuel exploration. For example they would be expected to exclude banks and insurance companies that are effectively enabling new coal, oil and or gas reserves to be discovered and in due course extracted through the provision of necessary finance or services. Social / Employment
Mining exclusion
All mining companies excluded Ethical Values Led Exclusions
Tobacco and 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
Find funds that avoid companies that manufacture products intended specifically for military use. Fund strategies vary - particularly with regard to non-strategic military products. See fund literature for fund specific details.
Civilian firearms production exclusion
Find funds with 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
Find funds that avoid investment in companies involved in the production of alcohol. Strategies vary; some funds allow a small proportion of profits to come from this area. See fund literature for further information.
Gambling avoidance policy
Find funds that avoid companies with significant involvement in the gambling industry. Some funds may allow a small proportion of profits to come from this area. See fund policy for further details.
Pornography avoidance policy
Find funds that avoid companies that derive significant income from pornography and related areas. Strategies vary. See fund details for further information. Human Rights
Oppressive regimes (not free or democratic) exclusion policy
Find funds with policies that exclude companies or other assets where regimes are not democratic, or where people may be oppressed. May use eg. Freedom House research. Strategies vary. See fund literature for further information.
Modern slavery exclusion policy
The fund has a policy which excludes assets with involvement in Modern Slavery Banking & Financials
Exclude banks with significant fossil fuel investments
Will avoid 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
Fund managers 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
Find fund managers that 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
A core element of these funds will aim to encourage higher ESG standards through responsible ownership / stewardship / engagement /voting activity
Require investee companies to report climate risk in R&A
The fund manager 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
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 fund in environmental/social solutions companies
Find funds that invest >25% of their capital towards 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
Find funds that invest >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
Fund 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’
50% of fund assets are regarded by the fund manager as being significantly focused on providing solutions to environmental or social challenges. Strategies vary. How The Fund Works
Positive selection bias
Find funds that focus 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
Find funds that have '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 held in the fund - except cash - meet the sustainability criteria published in fund documentation. Labels & Accreditations
SFDR Article 9 fund / product (EU)
Finds funds 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 fund managers may leave this field blank. Fund Management Company InformationAbout The Business
Specialist positive impact fund management company
Find fund 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 company wide)
Find fund 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 company wide)
This 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 company wide)
Asset management company has investments in bonds designed to meet sustainability requirements - however these assets may not be 'ringfenced' for this purpose. See fund manager website for details. Collaborations & Affiliations
PRI signatory
Find fund management companies that have signed up to the UN backed 'Principles of Responsible Investment'. Engagement Approach
Regularly lead collaborative ESG initiatives (AFM company wide)
Find fund 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 manager has stewardship /responsible ownership strategy that is focused on addressing climate change with investee assets.
Engaging on biodiversity / nature issues
The 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 and / or inclusion issues
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 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 (Fund)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 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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