Candriam Investors has expanded its SRI range with the launch of the Candriam SRI Bond Global High Yield fund.
The strategy offers investors access to areas of the fixed income market with exposure to sustainable growth models and a high regard for the environment and social values.
Its process is built on Candriam's belief that "companies which embrace sustainability-related opportunities and challenges in concert with their financial opportunities are most likely to generate financial returns".
The group said the fund's investment philosophy relies on deep financial and issue-specific research, combined with a high-conviction active style, in order to profit from opportunities in the high yield market.
Philippe Noyard, head of high yield & credit arbitrage, said: "Issuer selection, strategy flexibility and an active risk management are the pillars on our investment philosophy.
"Incorporating our long standing high yield expertise with our unique approach to SRI best-in-class analysis made sense, so our clients can benefit from both."
Today, SRI accounts for more than 25% of total AUM for Candriam.
Wim Van Hyfte, global head responsible investments & research, added: "We believe a comprehensive appraisal of the ESG opportunities and risks of issuers is essential to make fully-informed investment decisions in the fixed income space, including high yield corporate credit.
"By aligning Candriam's ESG-views with our fundamental credit analysis, Candriam attempts to mitigate and diversify the downside investment risks of our investment strategy."
The Candriam SRI Bond Global High Yield fund is currently registered for marketing in Luxembourg, Germany, France, Spain, Italy, Switzerland, the Netherlands and the UK.
In an environment where yields are so low, costs can make a huge difference to the outcome’
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Responsible for fund selection
Closing in 2020
Focused on asset liquidity and credit quality